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​We recently sat down with Accountant Cameron Watson to get his take on this years Federal Budget.

Camhas 30 years’ experience in the accounting profession and is a director of Paul Money Partners https://www.paulmoney.com.au/– a boutique accounting and wealth advisory firm with offices in Collingwood and Greensborough.

The 2026 Federal Budget is one of the most far-reaching in recent years, delivered against a backdrop of persistent cost-of-living pressures, elevated interest rates, housing affordability challenges and ongoing global economic uncertainty. Beyond the headline tax and spending measures, the Budget has significant implications for individuals, families, businesses, investors and retirees, influencing everything from personal taxation and superannuation through to business investment, infrastructure, energy transition and economic growth. One thing is certain – after the ho-hum budgets that have been handed down in recent memory – this one has got everyone talking!

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What we know - For Business

Instant Asset Write-Off is now permanent. Any piece of equipment under $20K, laptops, monitors, networking gear, fully deducted in the year you buy it.

Loss Carry-Back (for companies) is back. You can now offset losses against tax paid in the previous two years and get a cash refund. Loss carry back will apply to revenue losses only and will be limited to a company’s franking account balance.

Electric Vehicle FBT Discount is now permanent. Providing electric vehicles to staff will give a 25% FBT discount applies to eligible EVs over $75K, all under the $75k will be exempt still. Go salary sacrifice that EV – it’s a huge saving!

What we know - For Trusts

From 1 July 2028 (i.e., from the 2029 income year), trustees will pay a minimum tax of 30% on the taxable income of discretionary trusts. Beneficiaries, other than corporate beneficiaries, will receive non-refundable credits for the tax payable by the trustee.

What this means – corporate beneficiaries (you may know them as “bucket companies”) will be taxed twice. Not great. Goodbye bucket companies.

Businesses operating through a trust – given the minimum 30% tax rate from 1 July 2028 it will be necessary for working directors/beneficiaries to be paid an actual salary (with superannuation etc) to take advantage of lower marginal tax rates.

What we know – For Capital Gains Tax

From 1July 2027, the 50% CGT discount will be replaced by cost base indexation for assets held for more than 12 months, with a 30% minimum tax on net capital gains.

These changes will apply to all assets, including pre-CGT (1985) assets, held by individuals, trusts and partnerships.

Transitional arrangements will limit the impact on existing investments by ensuring the changes only apply to gains accruing on or after 1 July 2027. The 50% CGT discount will continue to apply to gains that accrued before 1 July 2027.

What this means – valuers are going to be very busy valuing assets as at 1 July 2027!

What we know – Negative Gearing

From 1 July 2027, losses from established residential properties will only be deductible against rental income or the capital gains from residential properties. Excess losses will be carried forward and are able to be offset against residential property income in future years.

These changes will apply to established residential properties acquired from 7:30 PM (AEST) on 12 May 2026. Properties acquired prior to this time (including contracts entered into but not yet settled) will be exempt from the changes until disposal.

Eligible new builds will be exempt from the changes.

What this means – it’s hoped housing becomes more affordable. Investors are going to think hard before investing in established housing. So hard that they most likely won’t do it.

What we don't know

Impact on the economy. On investment. On first home buyers. On new building. On rentals. Whether the Greens will pass the legislation or push harder for more.

What the memes don't tell you

That stuff you’ve seen on-line from your local tradie/gym owner/dry cleaner about their new 47% business partner “Albo”. It’s not correct – although reasonably amusing. Many small and medium businesses will still qualify for the small business CGT concessions – this can result in zero tax being paid on disposal of a business – a very silent partner in these cases!

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Thanks Cam, we appreciate your insights.