Australian tax residents who earn income from work, including wages, salaries, and sole trader business income. If your income comes only from investments or rental properties, this deduction does not apply.

The saving depends on your tax rate. At 32% (30% plus the Medicare Levy), the saving is $320. At 47% (45% plus the Medicare Levy), the saving is $470. If you currently claim more than $1,000 in legitimate work-related expenses, your actual expenses remain the better option.

Charitable donations, union and professional association membership fees, and other non-work deductions can still be claimed on top of the $1,000 flat deduction.

When we prepare your return, we will compare both options and ensure you claim in the way that gives you the best outcome. If you have questions about your work-related expenses in the meantime, please contact us.

• The offset reduces tax owed, rather than providing a direct cash payment. If you pay little or no tax, the benefit will be reduced or nil.
• It applies to individuals with income from work — not investment or rental income only.
• It increases the effective tax-free threshold for work income by nearly $1,800 to approximately $19,985 — or up to $24,985 for those also eligible for the Low Income Tax Offset.
• This is a permanent measure, unlike previous one-off cost-of-living offsets.

Note: If you have an outstanding tax debt or other liabilities, the offset may be applied against what you owe rather than appearing as a refund.

If you have an outstanding tax debt, this offset may reduce what you owe rather than generating a refund. Please reach out to us ahead of your 2027–28 return so we can review your full position and ensure you receive the maximum benefit available.

• Until 31 March 2027: Full FBT exemption remains in place for all eligible EVs.
• From 1 April 2027: Full exemption only applies to EVs priced at $75,000 or less. EVs above $75,000 but below the Luxury Car Tax threshold receive a reduced 25% FBT discount only.
• From 1 April 2029: The 25% FBT discount applies to all EVs below the Luxury Car Tax threshold, regardless of price.

If your current EV is priced above $75,000, you may lose the full FBT exemption from 1 April 2027 — regardless of when you entered your arrangement. Legislation has not yet been released and no assumptions should be made about existing arrangements being automatically protected.

If you currently have an EV under a novated lease or are considering entering one, the rules are changing in ways that could significantly affect your after-tax cost. Please contact us before making any changes or committing to a new lease so we can walk through the numbers with you.

The 50% CGT discount continues to apply to all gains arising before 1 July 2027. If you sell an asset before that date, the existing rules apply in full. For gains arising on or after 1 July 2027, the new indexation method applies — your original cost base is indexed for CPI to reduce the taxable gain.

Investors in new residential properties will be able to choose between the 50% CGT discount or cost base indexation with the minimum tax — whichever produces the better outcome. Income support and Age Pension recipients will be exempt from the minimum tax.

For businesses built from scratch — where goodwill has a zero cost base — the impact is particularly significant. Indexation can only adjust a cost base that exists; a zero cost base produces no reduction. Every dollar of goodwill gain accruing after 1 July 2027 will be fully taxable at the owner's marginal rate, subject to the 30% minimum tax. The Small Business CGT Concessions remain available, but their effective value is reduced.

The Budget confirms expanded rollover relief for three years from 1 July 2027 to support businesses wishing to restructure out of discretionary trusts into a company or fixed trust — without triggering a CGT liability at the time of transfer. This is a genuine and time-limited opportunity.

Whether to hold or sell an existing asset will be a different decision for every client. If you own a business through a trust or as a sole trader, the question of whether your current structure still makes sense is more pressing than it has been in 25 years. Please contact us to discuss — we can model the numbers for your specific situation.

• Existing investment properties are fully protected. If you already own a negatively geared investment property, your ability to offset losses against other income continues unchanged for as long as you hold that property.
• For established residential properties acquired after 7:30pm AEST on 12 May 2026, the rules change from 1 July 2027. Losses from those properties will only be deductible against rental income or capital gains from residential properties. Excess losses are carried forward — they cannot reduce salary or wage income.
• Newly constructed properties are exempt. Where you purchase a new build that adds to Australia's housing supply, negative gearing deductions remain fully available.
• Contracts entered into before 7:30pm on 12 May 2026 — including those not yet settled — are covered by the grandfathering provisions.

The negative gearing changes interact directly with the CGT changes confirmed in the same Budget. Together, the overall economics of acquiring a new established investment property have shifted materially.

If you are considering purchasing another investment property, the rules have changed in ways that affect both your ongoing cash flow and your future capital gains position. Please contact us before you proceed so we can model the after-tax return under the new rules.

From 1 July 2028, trustees of discretionary trusts will be required to pay a minimum tax of 30% on the taxable income of the trust. Beneficiaries — other than corporate beneficiaries — will receive non-refundable credits for the tax paid by the trustee, similar in concept to franking credits on dividends.

The practical effect is a significant increase in the tax cost of distributing trust income to beneficiaries who pay tax at a combined rate below 30%. Where a beneficiary's actual tax liability is less than the credit received, the excess is permanently lost — it cannot be refunded. The breakeven point falls at approximately $131,600 of income.

The Budget confirms expanded rollover relief for three years from 1 July 2027 to support businesses and individuals wishing to restructure out of discretionary trusts into another entity type before the minimum tax takes effect.

Fixed trusts, widely held trusts, complying superannuation funds, special disability trusts, deceased estates, and charitable trusts are not subject to the measure. A number of exclusions apply to certain types of income, including primary production income.

We cannot provide definitive advice on this measure yet — the legislation does not exist — but early engagement will maximise your options when it does. Please contact us so we can begin reviewing your trust arrangements now and be ready to act quickly once the detail is confirmed.

From 1 July 2026, if your total superannuation balance across all funds exceeds $3 million, the earnings attributable to the portion above that threshold will be subject to an additional 15% tax — effectively doubling the tax rate on those earnings from 15% to 30%. This legislation received Royal Assent on 13 March 2026 and is now law. Importantly, the tax now only applies to taxable income and not unrealised gains like originally proposed. The ATO will issue an assessment and you have 84 days to pay, with the option to release funds from your account to meet the liability.

The transfer balance cap — the maximum amount you can hold in a tax-free retirement phase pension — increases from $2.0 million to $2.1 million from 1 July 2026. If you are planning to commence a retirement phase pension, this increase may present a planning opportunity.

From 1 July 2026, employers are required to pay superannuation contributions at the same time as wages, rather than quarterly. Payroll systems will need to be updated before the changeover date, and contributions must reach the employee's fund within seven business days of each pay date. Find out more here.

Whether your superannuation balance is approaching $3 million, you are planning to commence a retirement pension, or you are a small business employer preparing for payday super — these changes require attention before 1 July 2026. Please contact us to discuss your situation.

The $20,000 instant asset write-off has been confirmed as a permanent feature of the tax system for small businesses with annual turnover of less than $10 million, from 1 July 2026. The write-off applies on a per-asset basis, allowing eligible businesses to immediately deduct the full cost of assets under the threshold in the year they are first used or installed.

Companies with aggregated annual global turnover of less than $1 billion will be able to carry back a tax loss and offset it against tax paid in either of the two previous financial years. If your company paid tax in 2024–25 or 2025–26 and subsequently incurs a loss in 2026–27 or later, a cash refund may be available. The carry-back applies to revenue losses only and is limited by your company's franking account balance.

From 1 July 2028, small start-up companies with annual turnover under $10 million that incur a tax loss in their first two years of operation will be able to convert that loss into a refundable tax offset — capped at the value of FBT and withholding tax on wages paid to Australian employees.

From 1 July 2028, the R&D Tax Incentive is being reformed. The offset rates for core R&D expenditure increase by 4.5 percentage points. The intensity threshold drops from 2% to 1.5% and the turnover threshold for the refundable offset rises from $20 million to $50 million. However, supporting R&D expenditure will no longer be eligible — only core R&D expenditure qualifies. The minimum expenditure threshold increases from $20,000 to $50,000.

If your company has paid tax in recent years and is expecting a loss, please contact us as a matter of priority — a cash refund may be available sooner than you think. For R&D claimants, please get in touch well ahead of 2028 so we can review your claim structure and assess the impact.

The 32 cent per litre reduction in fuel excise, introduced on 1 April 2026, was a temporary three-month measure. It has not been extended and the full excise rate returns from 1 July 2026. If your business is a heavy fuel user, please factor this into your budgeting. Businesses using fuel for business purposes may also be eligible to claim fuel tax credits.

The Medicare levy low-income thresholds have been increased by 2.9% from 1 July 2025 to provide relief for low-income individuals and families. The threshold for singles increases to $28,011, and the family threshold increases to $47,238.

The temporary ban on foreign purchases of established residential dwellings has been extended to 30 June 2029. Existing exemptions — including for permanent residents and New Zealand citizens — continue to apply. For the majority of clients this will have no direct impact.