If you’ve been following the news since Budget night, you’ve probably heard snippets about tax cuts, property changes, and new business measures. But cutting through the noise to understand what actually applies to your business is another matter entirely.
This guide breaks down the key Budget announcements that may affect Brisbane small business owners, in plain English, with the important caveat that many measures still need to pass Parliament before they take effect.
At Rhythm Financial, we help small business owners across Brisbane make sense of tax and compliance changes, including the measures announced in the 2026 Federal Budget.
What the Federal Budget 2026 Means for Your Business
Some of the most significant announcements in the Budget relate to CGT, negative gearing, and discretionary trusts. The summary proposes replacing the 50% CGT discount with cost base indexation and a 30% minimum tax on net gains from 1 July 2027, restricting negative gearing on established residential properties from the same date, and introducing a 30% minimum tax on discretionary trust income from 1 July 2028.
These are major structural changes and should be described as proposals unless and until legislation confirms them. They are also the kinds of changes that can affect business owners holding property or using trust structures, so any timing or restructuring decision should be made carefully and with professional advice.
Permanent Instant Asset Write-Off
The Budget proposes making the $20,000 instant asset write-off permanent from 1 July 2026 for businesses with aggregated turnover under $10 million. If enacted, the threshold would apply per asset, not in total, and GST-registered businesses would generally assess the GST-exclusive cost.
For Brisbane businesses, that could help with planning equipment purchases more confidently than under a year-by-year extension model. A hospitality operator, tradie, or professional services firm may be able to use the concession for eligible business assets, subject to the final legislation.
Individual Tax Measures
The Budget also proposes revised Stage 3 tax cuts, with the 16% rate dropping to 15% from 1 July 2026 and then to 14% from 1 July 2027. It also proposes a new $1,000 instant tax deduction for work-related expenses and a permanent $250 Working Australians Tax Offset from 1 July 2027.
For employers, the practical effect would be slightly higher take-home pay for some workers, but these measures would not directly reduce wage costs. Because these changes are proposed rather than enacted in full, it’s best to treat them as future settings rather than current law.
Superannuation
The Super Guarantee rate is already 12% from 1 July 2025, and the Budget summary does not indicate any further change to the employer super rate. That means payroll systems should already be calculating super at 12%, not 11.5%.
For Brisbane business owners, this is a good time to confirm payroll software and default settings are aligned with the current rate. Super errors can create compliance issues even when no new Budget change has been announced.
Loss Carry-Back
The Budget summary proposes extending loss carry-back for eligible companies. In practical terms, that would allow a company to offset a current-year tax loss against tax paid in prior years, which may improve cash flow for businesses that have had a difficult trading period.
For example, if your company paid $40,000 in tax in FY2025 but made a loss in FY2027, you may be able to apply for a tax offset rather than waiting to use that loss in a future profitable year. The result is a potential cash refund rather than a deferred benefit.
Note, this measure applies to companies, not sole traders or trusts. If your business is company-owned and cash flow has been tight, this is one to discuss with your accountant once the final rules are confirmed.
PAYG Instalments: More Flexibility Coming
The Budget proposes more flexibility for PAYG instalments, including monthly reporting options using ATO-approved calculations built into accounting software from 1 July 2027. That could help businesses that prefer closer alignment between tax payments and actual trading results.
For small and medium businesses, this may reduce the pressure of quarterly estimates if the final implementation matches the Budget summary. It also suggests a more automated approach to instalment calculations in software platforms.
CGT Changes
This is the most consequential change in the budget for many business owners, particularly those holding investment assets or operating through discretionary structures.
From 1 July 2027, the Budget proposes replacing the 50% CGT discount for assets held more than 12 months with cost base indexation and a 30% minimum tax on net gains.
To illustrate the proposed change, under the current rules a $100,000 gain on an asset held for more than 12 months would generally be reduced to a taxable gain of $50,000. Under the proposed rules, the outcome would depend on the indexed cost base and the minimum tax settings, which means the tax result could be higher or lower depending on the asset and timing.
What it does mean is that for anyone considering a sale of a business, property, or significant investment asset in the coming years, the timing of that decision matters more than it did before. We highly recommend talking to one of our team to discuss your best options.
Negative Gearing Restrictions
The Budget also proposes restricting negative gearing on established residential properties from 1 July 2027. If enacted, losses on those properties would only be deductible against rental income or capital gains from residential property, rather than against other income.
The proposal would apply to properties acquired from 7:30pm AEST on 12 May 2026, while properties acquired before that time would be exempt. That means the timing of a purchase could matter significantly if the measure becomes law.
For Brisbane business owners who also hold investment properties, this proposal could change the economics of future purchases. It is best treated as a forward-looking planning issue rather than an immediate rule, because the Budget announcement still depends on legislation.
Discretionary Trust Minimum Tax
From 1 July 2028, the Budget proposes a 30% minimum tax on discretionary trust income. Beneficiaries other than corporate beneficiaries would receive non-refundable credits for tax paid at the trust level, while other trust types such as fixed trusts and superannuation funds would not be affected.
The proposal also includes expanded rollover relief from 1 July 2027 to 30 June 2030, which could allow small businesses and others to restructure out of discretionary trusts into another entity type such as a company or fixed trust. That gives business owners a planning window, but the practical value of the concession will depend on the final legislation.
If your business currently uses a discretionary trust, this is worth reviewing with your accountant rather than reacting immediately. The Budget proposal may change the tax efficiency of the structure over time, but any decision to restructure should be based on the final rules and your broader business goals. Our small business restructure service is designed to help business owners work through exactly this kind of transition.
If we could only give you one piece of advice…
The key takeaway from the 2026 Federal Budget is don’t act yet. The Federal Budget is a proposal, and the above changes may be amended or scrapped all together.
For now, the most effective response is to gather the relevant information, identify which measures genuinely affect your circumstances, and make informed decisions with the full picture in view.
When a Budget introduces a wide range of reforms, it’s natural to feel pressure to act quickly. However, a measured approach is usually more effective than a reactive one, particularly when many of the proposed changes are not scheduled to commence until 2027 or 2028.
Discuss the Federal Budget’s impact on your business
Every business will be affected differently by the measures announced in the Federal Budget. If you’d like to understand what the changes mean for your specific circumstances, we’re here to help.
Get in touch with the Rhythm Financial team to discuss your position, identify any opportunities or risks, and ensure you’re well prepared for the changes ahead.
