May 2026 EOFY and Budget
We have held off from providing this update until the presentation
of the Budget which we have made some preliminary comments
and observations.
You should be on top of your financial positions and if needed
getting advice!
If this triggers any thoughts, please don’t hesitate in contacting us.
End of Financial Year
The main area we can assist is contributions to super to gain a tax deduction. This benefits you by increasing your retirement savings instead of paying excessive tax. The single greatest advantage super offers is time. Money inside super grows in a low-tax environment, and the longer it stays there, the more it compounds. If you put $100,000 into super at age 25 at 7% per year, by age 65 it will be worth around $1.5 million. The same
amount put in at age 40 grows to just $542,000. The difference - nearly $1 million - comes purely from starting sooner.
Consider the following – have you sold assets that triggered a Capital Gain? Did you receive extraordinary taxable income? Do you have Farm Management Deposits? Please consult your accountant to know your position which will enable us to develop a strategy to be tax efficient.
Notes –
- Concessional limit is $30,000. Everyone can use this limit self employed or employee – rules do apply so contact us for advice.
- Utilise the “un-used” concessional contribution to get more deduction if needed
- From the 1st July 2026 Concessional contribution limit increases to $32,500
IMPORTANT
Our preference is for you to pay contributions by BPay or EFT. Please contact our office to get your details if needed. 30th June falls on a Tuesday, we recommend any electronic payment needs to be completed by the 24th June to ensure it’s processed. Contributions made are not deemed to have been made until the money appears in your super fund. This could be some days after you initiate the transfer.
Many areas have got complicated, we strongly recommend getting advice. If you need advice in any of these areas, please don’t hesitated in contacting our office.
Regards
David, Rochelle and Angus Leese
PTO
2026 Budget
Warning - Budget proposals need to pass parliament before they are law!
The widely anticipated rumours of the Budget have finally landed and we think they are a little worse than anticipated for most. We’ll keep to the facts as we know them today.
The 2 main proposals that have the greatest effect –
Capital Gains Tax (CGT) – the proposal is to replace the 50% CGT discount with cost base indexation (similar to what we had in the 90’s before changing in 1999) and a 30% minimum tax rate on gains. The proposed start date is 1st July 2027. The new proposal adds complexity in all areas of CGT. There is no change to the Small Business CGT Exemptions and for assets held within Superannuation.
Taxing Discretionary Trusts – the proposal is from 1st July 2028, trustees of discretionary trusts will pay a minimum of 30% tax on the taxable income of discretionary trusts. Beneficiaries, other than corporate beneficiaries, will receive non-refundable credits for the tax payable by the trustee. There is a list of exemptions, including testamentary trusts, super funds and trusts which derive primary production income. There is proposed rollover relief for 3 years for restructuring (stamp duty will be the issue?).
Other proposals effect negative gearing (to us not as big of an issue compared to the 2 above) and the removal of the private health insurance rebate for those over 65s
Some good parts, from 1st July 2026 the $18,201-$45,000 tax bracket tax reduces from 16% to 15% and there is an instant tax deduction of $1,000 for work related expenses without the need for record keeping. From 1st July 2028 a new tax offset of $250 for workers. For small business the $20,000 instant asset write-off is permanently extended.
We now wait to see what gets passed and if there are amendments?
We’ll keep you informed.
If any of the above concern you please don’t hesitate to contact us or your tax advisers.