Are Your Assets
Exposed?
A plain-English breakdown of what the Budget means for your tax, property, business, SMSF and family trust. No spin. Just the facts — and what to do before 30 June.
Let me be straight with you.
This Budget represents a seismic shift for middle-market Australia. The Treasurer has made some of the most aggressive calls targeting investors, property owners, and business structures we have seen in a generation.
If you rely on a family trust, negative gearing, or a Self-Managed Super Fund, the rules of the game have changed. The 50% Capital Gains Tax discount is being abolished. Family trusts are facing a new 30% minimum tax. Negative gearing is being restricted to new residential builds only. And if your SMSF balance is over $3 million, the Division 296 tax on unrealised earnings is very much on the table.
None of this has to be a disaster. Your existing structures might be safe for now — but sitting on your hands is no longer an option. The window to act before 30 June is short, and the right advice right now could protect a significant amount of your wealth.
We have pulled the key Budget measures from Deloitte, CPA Australia, BDO, Hayes Knight, William Buck, Pitcher Partners and EY — and translated them into plain English. No jargon. No spin. Just what it means for you and what you should be thinking about right now.
Several of these measures take effect from 1 July 2026 or 1 July 2027. That gives you a very short window to take action. Do not sit on this. Call us, book a session with John, and let us work through what applies to you.
“This is a Budget of broken promises and a rebalancing act. The changes to trusts and CGT are significant and will require careful planning for anyone with investment structures.”
We have also scheduled a live Budget Q&A webinar on Monday 1 June 2026 at 12:30pm AEST where you can ask our team anything — CGT, trusts, property, SMSF, whatever is on your mind.
The Current vs. Future Snapshot
How the Budget impacts your key wealth structures — before and after.
| Asset / Structure | Current Rules | New Budget Rules |
|---|---|---|
| Family Trusts | Income distributed to family members on lower marginal tax rates | 30% minimum tax on distributions to adult beneficiaries (from 1 July 2028) |
| Rental Properties | Losses deducted against wage/salary income (negative gearing) | Restricted to new builds only. Established property losses quarantined (from 1 July 2027) |
| Capital Gains Tax | 50% discount on gains for assets held over 12 months | Abolished. Replaced by inflation indexation + 30% minimum tax on real gains (from 1 July 2027)* |
| SMSFs | Highly concessional tax environment | Division 296: additional 15% tax on earnings for balances over $3 million, including unrealised gains |
| Small Business | $20k instant asset write-off (temporary) | $20k write-off now permanent. 2-year tax loss carry-back reintroduced |
| Personal Tax | 19% rate on $18,201–$45,000 | 16% from 1 July 2026, dropping to 14% from 1 July 2027 |
* New residential builds can still choose the 50% CGT discount.
Six Things to Know Right Now
We have broken the Budget down into the six areas that matter most to our clients. Three of them are urgent.
Capital Gains Tax
The 50% CGT discount is gone from 1 July 2027. If you are planning to sell an investment property or shares, timing is now absolutely critical.
Family Trusts
A 30% minimum tax on discretionary trust distributions to adult beneficiaries from 1 July 2028. The era of simple income splitting is ending.
SMSF & Division 296
If your SMSF balance exceeds $3 million, an additional 15% tax applies to earnings — including unrealised gains on property inside the fund.
Property & Negative Gearing
Established properties are grandfathered. But new purchases of established homes will have losses quarantined from 1 July 2027. New builds are still fine.
Small Business
The $20k instant asset write-off is now permanent. The 2-year tax loss carry-back is back. Energy efficiency incentives for small business are extended.
Personal Tax & Individuals
The 16% tax bracket kicks in from 1 July 2026. A new $1,000 instant work deduction — no receipts needed. A $250 automatic tax cut from 2027–28.
Property & Capital Gains Tax
From 1 July 2027, the 50% CGT discount for individuals and trusts will be abolished. If you are planning to sell an investment property or shares, timing is now absolutely critical.
The 50% CGT discount will be replaced with an inflation-adjusted cost base indexation method, coupled with a minimum 30% tax on the real capital gain. For established properties acquired after Budget night, negative gearing will be restricted.
You buy an investment property for $500,000 and sell for $700,000.
Under the old rules: $200,000 gain. Apply 50% discount. Add $100,000 to taxable income.
Under the new rules: Cost base indexed to $550,000. Real gain = $150,000. Minimum 30% tax = $45,000 tax — compared to roughly $23,000 before. Nearly double.
If you are thinking about selling an investment property or a parcel of shares, do it before 1 July 2027 and keep the 50% discount. After that date, the maths changes significantly. Call us now — this is time-sensitive.
Family Trusts & Distributions
The government is proposing a minimum 30% tax rate on discretionary trust distributions to adult beneficiaries, starting 1 July 2028. The era of simply distributing income to family members on lower marginal tax rates is ending.
Corporate beneficiaries are excluded from receiving non-refundable credits, discouraging the use of companies for income splitting. The government is also targeting arrangements where trusts are used to reduce tax by distributing to lower-income family members.
The government is offering a three-year rollover relief window from 1 July 2027 to allow businesses to restructure out of discretionary trusts without massive penalty. This is a genuine opportunity — but it requires planning now, not in 2027.
If your family trust is a key part of how you distribute income, we need to sit down and model the impact of the 30% minimum tax on your specific situation. For some clients, restructuring will make sense. For others, the trust still works. But you need to know which camp you are in before 30 June.
SMSF & Superannuation
If your total superannuation balance exceeds $3 million, an additional 15% tax on earnings — including unrealised gains — is coming. If you hold property inside your SMSF, you could be taxed on paper gains even if you have not sold anything.
Division 296 introduces an additional 15% tax on superannuation earnings for total balances over $3 million. Critically, this tax applies to unrealised gains — meaning you could be taxed on paper gains in assets like property held inside your SMSF, even if you have not sold them. This is unprecedented in Australian tax law.
The unrealised gains component is the most dangerous part of Division 296. If your SMSF holds a commercial property that has grown in value, you could face a tax bill with no cash to pay it. We need to model this for you now.
- Max out concessional contributions before 30 June ($30k)
- Review total balance vs. $3 million threshold
- Model Division 296 impact on your specific fund
- Consider whether restructuring makes sense for your situation
Small Business
From 1 July 2026, employers must pay superannuation at the same time as wages — not quarterly. This is a significant cash flow change. If you are not ready, ATO penalties are severe.
Not everything in this Budget is bad news for small business. The $20,000 instant asset write-off is now permanently available for businesses with turnover under $10 million. The 2-year tax loss carry-back is back. And the EV FBT exemption is being scaled back from April 2027 — act before then.
Maria runs a café with $800,000 turnover. She buys a commercial coffee machine for $18,500.
Under the permanent write-off, she deducts the full $18,500 this year. At a 25% company tax rate, she saves $4,625 in tax — this year, not over 7 years.
The $20k write-off is permanent now — but that does not mean you should wait. Buying before 30 June means you get the deduction in this financial year. Every dollar of equipment you buy before 30 June reduces your taxable income dollar for dollar.
Budget Q&A:
Ask Us Anything
Bring your questions. Our team will answer them live. CGT, trusts, SMSF, property, small business — nothing is off limits.
Topics We Will Cover
Ready to talk?
Book a pre-30 June tax planning session with our team today.
This document has been prepared by Shuriken Consulting Pty Ltd for general information purposes only. The information contained herein is general in nature and does NOT constitute financial product advice, taxation advice, or legal advice as defined under the Corporations Act 2001 (Cth), the Tax Agent Services Act 2009 (Cth), or any other applicable legislation. It does not take into account your personal financial situation, individual objectives, financial position, or specific needs. Before acting on any information in this document, you should consider whether it is appropriate to your personal circumstances and seek independent professional advice from a registered tax agent, financial adviser, or legal practitioner. The Federal Budget measures described are proposals only and are subject to the passage of enabling legislation through the Australian Parliament. Shuriken Consulting Pty Ltd is a registered tax agent. © Shuriken Consulting 2026. All rights reserved.