The Federal Budget has landed… and honestly, there’s been a lot to unpack.
Over the past week, we’ve been putting together a series of short videos that break down the biggest changes we think business owners and investors need to understand. We had so many conversations and questions come through that we decided to stitch the reels together into one longer discussion.
Because while headlines are one thing… the real impact happens when you look at what this means for actual people running businesses, investing in property and trying to build wealth.
And there are some BIG changes on the table.
Capital Gains Tax Is Getting More Complicated
If you thought CGT was already confusing, unfortunately, it’s about to become even more complicated.
The proposed changes introduce a split system from 1 July 2027:
- Existing gains before that date continue under the current rules
- Gains after that date move into an indexing/CPI-based calculation
Which means:
- Property owners may need formal valuations completed by 1 July 2027
- future tax calculations become significantly more complex
- Many investors could end up paying more tax than they currently expect
One of the biggest concerns here is uncertainty. Investors and business owners want clarity and confidence when making long-term decisions – and these changes add another layer of complexity.
Negative Gearing Changes Could Shift The Market
This has obviously become one of the hottest topics post-budget night.
The big takeaway:
- Existing investment properties purchased before 12 May 2026 remain largely unchanged
- New purchases after that date may lose access to traditional negative gearing benefits unless they qualify as new builds
The government’s clear focus is on encouraging new housing supply.
So:
- new developments
- duplex builds
- off-the-plan purchases
- substantial redevelopments
…are likely to become much more attractive from a tax perspective moving forward.
But here’s the thing we always say:
Negative gearing should never be the ONLY reason you buy property.
A good investment should still stand on its own feet and ideally move toward being positively geared over time.
Instant Asset Write-Off Continues
Now for some genuinely good news.
The instant asset write-off is continuing, providing businesses with certainty to invest in equipment and improve operations.
The important thing to understand, though:
A tax deduction is not free money.
We see a lot of business owners rush into purchases without properly considering:
- cashflow
- repayments
- financing costs
- future tax consequences
The instant asset write-off can absolutely help businesses grow, but only when used strategically.
Done properly, it can also create opportunities around loss carry-back tax refunds and improve cash flow during slower periods.
Family Trust Changes Have Business Owners Concerned
One of the biggest conversations we’ve been having with clients is around the proposed changes to family trusts.
For many Australian small businesses, discretionary trusts are not some “big end of town” structure.
They’re simply:
- mum and dad businesses
- tradies
- family operators
- people taking risks to build something
Historically, trusts have allowed flexibility in distributing income across family groups and reinvesting profits efficiently.
The proposed rules could significantly reduce some of those advantages from 2028 onward.
And understandably, many business owners are frustrated by the direction this is heading.
So What Should You Actually Do?
First:
Don’t panic.
A lot of these measures still need to pass legislation.
Second:
Don’t make major decisions based purely on headlines or social media takes.
The real impact depends on:
- your structure
- your income
- your properties
- your long-term goals
- your business cashflow
Every situation is different.
The biggest mistake we see people make is reacting emotionally instead of strategically.
Final Thoughts
This Budget has definitely created uncertainty for investors and business owners.
But uncertainty also creates opportunity for people who understand the rules and plan properly.
If there’s one thing we’d encourage, it’s this:
Don’t wait until 2027 or 2028 to start understanding how these changes could affect you.
Get advice early.
Run the numbers.
Have a strategy.
And if you want to watch the full stitched-together breakdown from our recent reels, keep an eye on our socials and YouTube.
Because yes… we actually give a shit about helping business owners understand what all this means in the real world.