Mead Partners talks to CMPA about the Federal Budget

With rumours circulating even before it was delivered, the 2026 Federal Budget delivered some of the biggest tax changes and measures for more than 25 years.

From reforming negative gearing to changes to Trust taxation and instant tax write off rules, there’s a lot to break down – especially when it comes to what this means for your business.

“As a certified accountant and business advisor, here’s the big changes you need to be across, the potential impacts and actions you may need to consider,” said John Pititto, Managing Partner, Chartered Accountant, Mead Partners and Treasurer CMPA Management Committee.

Capital Gains Tax discount replaced

What’s changing at a glance:

• New rule: Discount will be replaced and calculated as a cost base index (calculation yet to be explained by the ATO)
• Minimum of 30% tax rate: Applicable for all capital gains made after 1 July 2027.
• Who it applies to: Individuals, trusts (including testamentary trust yet to be established) and partnerships who have owned an asset for more than 12 months.
• Who is exempt: Superannuation funds (including SMSFs)

Negative gearing rules upheaved

What’s changing at a glance:

• Significant scheme changes: Negative gearing will no longer apply to existing residential investment properties, with only new builds eligible for the scheme.
• Who it applies to: All residential property investors
• Who is exempt: Investors with established residential investment properties purchased before 12 May 2026.

Big changes for discretionary trusts

What’s changing at a glance:

• New minimum tax: Trustees will pay a minimum tax of 30% on taxable income distributed to beneficiaries. 
• Tax credits: Non-corporate beneficiaries will receive a non-refundable credit for tax payable by the trustee.
• Who it applies to: Discretionary trusts and beneficiaries

Instant asset write-off extended

What’s changing at a glance:

• Extended write-of rules: $20,000 instant asset write off has been extended into 2026 with talk of it becoming a permanent feature in the next budget.
• Who it applies to: Small businesses who meet eligibility criteria

Loss carry back reintroduced for companies

What’s changing at a glance:

• Reintroduction of offset: The offset is set to continue for eligible start-ups
• Who it applies to: Small business start-ups

Phased changes for Fringe Benefit Tax (FBT) electric car exemptions

What’s changing at a glance:

• Phased approach: A three phase approach will apply from 1 April 2027
• Exemption replacement: Phase three will move to a 25% discount
• Who it applies to: Businesses purchasing EVs

Not sure how these budget changes will impact your business?

Book a session with our business advisories to understand potential tax implications and ensure you stay ahead of these changes.

More information
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We would like to thank Mead Partners for being a CMPA Member for 19 years and for representing the interests of small to medium businesses in the quarry industry.

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