Live Federal Budget Update

Added: 2026-05-13

[00:00:12]Hi, I'm Joanne Marine from RSM um tax partner here and joining me tonight is Christie Binns, one of our directors, and we're going to talk to you about federal budget.

[00:00:22]So, we've just watched the budget announcement and we would have to say that it is probably the biggest budget in the last 20 years. It was um full of announcements and although we had a lot of leaks and things that were announced prior to the budget, there were also a lot of surprises as well. So, some of the known outcomes are things that we we had already heard about during the week where trusts uh will be taxed at the at a minimum rate of 30% that this $20,000 small business instant asset write-off is here to stay, that all individuals will will have the option of having a $1,000 automatic tax deduction, and there'd be a removal of the CGT discount and negative gearing.

[00:01:06]So, obviously with these things the devil is always in the detail.

[00:01:10]And some of the surprises have come in that detail. So, CGT will um apply a minimum rate of tax of 30% on all CGT assets including property and share investments. However, this does exclude the main residence. Surprisingly, this also includes pre-CGT assets, which is probably one of the biggest shocks in the budget announcements tonight.

[00:01:32]Those who apply a new build can elect to apply the 50% discount if they wish.

[00:01:37]Negative gearing, so losses can only be offset against other rental property income or capital gains on the sale of rental properties.

[00:01:46]Um they can be carried forward and they can be offset in the future. This change also excludes new builds where they can continue to offset rental property losses against their other sources of income.

[00:01:58]From a corporate perspective, um loss carry back is back. So, from 1 July 2026, corporates with a turnover of less than a billion dollars will be able to carry back top tax offices and offset these against tax paid for up to 2 years earlier.

[00:02:13]Another one for the corporates in support for for startups is that startup companies with a turnover of less than 10 million dollars can and generate a tax loss in their first 2 years can get a refundable offset limited to the FBT and PAYG withholding um paid on their wages.

[00:02:31]Finally, for all of us all all of us working, there's a tax offset of $250 from 1 July 2027 for all working Australians, salary wage earners, and sole traders aimed at alleviating some of our cost of living pressures.

[00:02:46]Now, there are big surprises. If you'd like to learn more, please subscribe to our budget report, which will be coming out later today, or register for our webinar. Thank you.