For many business owners, the business itself is one of the main ways they build long-term wealth. That’s why this year’s Federal Budget matters. It doesn’t just tweak tax settings. It changes how business structures, investments and personal wealth interact over the next decade.
Some of the measures are practical and immediate. Others won’t take effect until 2027 or 2028, but they could significantly change how SMEs think about trusts, asset ownership, investment property and succession planning.
Here’s what business owners should pay attention to.
The $20,000 instant asset write-off is now permanent, giving small businesses with turnover under $10 million a stable foundation for capital expenditure planning
Loss carry-back provisions return in permanent, broader form from 1 July 2026 — companies with turnover under $1 billion can offset current losses against tax paid in the previous two years
A minimum 30% tax on discretionary trust distributions from 1 July 2028 could fundamentally change how many SMEs structure and distribute income, but don't restructure before the legislation exists
From 1 July 2027, the 50% CGT discount will be replaced with cost-base indexation and a 30% minimum tax on realised gains, with significant implications for business owners holding long-term assets
Negative gearing on residential investment property will be limited to new builds only from 1 July 2027, commercial property, shares and SMSF borrowing arrangements are unaffected
There are a few announcements in the 2026 Federal Budget that provide more certainty for SMEs and remove some of the year-to-year guessing.
From 1 July 2026, eligible small businesses with turnover under $10 million can continue to immediately deduct assets costing less than $20,000.
That matters because businesses can now make investment decisions with more confidence, rather than waiting each Budget to see whether the threshold survives another year.
For SMEs upgrading equipment, vehicles, technology or tools, this creates a more stable environment for planning capital expenditure.
The Budget also reintroduces loss carry-back provisions in a broader, permanent form. From 1 July 2026, companies with turnover under $1 billion will be able to offset current-year tax losses against tax paid in the previous two years and potentially receive a refund.
For businesses that have been squeezed by rising costs, slower consumer demand or margin pressure, that’s meaningful cash flow support.
The Government also plans to introduce monthly tax payments and dynamic PAYG instalments for SMEs from 1 July 2027.
In practice, that should make forecasting and cash flow management more predictable for many businesses.
The cash flow measures in this budget are some of the most immediately useful for SMEs in years. The permanence of the instant asset write-off in particular removes the uncertainty that has made it difficult to plan capital expenditure with confidence.
If your business has experienced a loss year since 2024, the loss carry-back provisions may also be worth exploring in the context of your tax position.
Whether any of these measures apply to your situation is worth discussing with your Findex advisor.
The bigger story in this Budget sits in the structural reforms. These are the measures that could materially change how business owners hold assets, distribute income and plan for growth.
The legislation still needs to be drafted, so there’s detail to come. But the direction is clear.
From 1 July 2028, the Government plans to introduce a minimum 30% tax on discretionary trust income.
For many SMEs, discretionary trusts sit at the centre of their business and wealth structure. The proposed changes raise questions around:
Bucket company arrangements
Income distribution strategies
Asset protection structures
Succession planning
One of the biggest concerns is how existing bucket company structures may be treated. Under the announced framework, companies receiving trust distributions may not receive a credit for tax already paid by the trustee, potentially creating a second layer of tax.
There are carve-outs for primary production income, which is significant for agricultural businesses and farming families.
The Government has also flagged three years of rollover relief from 1 July 2027 for businesses wanting to restructure from discretionary trusts into companies or fixed trusts.
But right now, the key message is this: don’t rush to restructure before the legislation exists. The practical outcome will depend heavily on the final rules.
If your business operates through a discretionary trust, the 30% minimum tax from 1 July 2028 is likely to affect how you distribute income and structure your wealth.
The three-year restructure window opens from 1 July 2027 — but the right path forward will depend heavily on the final legislation, your beneficiary profile and your asset mix.
This is a conversation worth having with your Findex advisor sooner rather than later, so you're positioned to act when the detail is clear.
From 1 July 2027, the 50% CGT discount will be replaced with cost-base indexation and a 30% minimum tax on realised gains.
This applies broadly across CGT assets, including pre-CGT assets, although gains accrued before 1 July 2027 will be grandfathered.
For many long-established business owners and farming families, that’s a major shift.
One practical consideration will likely be formal valuations before the changes take effect, particularly for assets that have never previously required valuation.
The changes may also affect how founders think about growth and exit planning.
For start-ups and growth businesses, the economics of a future business sale could look materially different under the new rules. That has implications for:
Founder risk appetite
Capital raising
Equity structures
Exit planning
Investor behaviour
The Early Stage Innovation Company (ESIC) regime may become increasingly important as a result.
If you hold long-term business assets, investment property or pre-CGT assets, the window between now and 1 July 2027 may be a meaningful planning horizon. Formal valuations, exit timing and equity structures are all worth reviewing in light of the new rules.
Whether these changes affect your position, and what to do about it, is worth discussing with your Findex advisor before the legislation lands.
From 1 July 2027, negative gearing on residential investment property will be limited to new builds only. Existing properties purchased before Budget night are grandfathered.
Importantly for many SME owners:
Commercial property is unaffected
Shares and other investment assets are unaffected
SMSF borrowing arrangements remain unchanged under current rules
For business owners who hold commercial premises as part of their wealth strategy, the immediate impact may be limited. But the change could alter how investors compare residential and commercial opportunities going forward.
If you hold residential investment property personally or through your business structure, the change in negative gearing treatment is worth understanding in the context of your broader wealth strategy. If you're considering new property investment, the distinction between new builds and established dwellings is now material.
Your Findex advisor can help you model how the changes affect your position.
Beyond the tax changes, the Budget includes several measures aimed at innovation, investment and business growth.
The Government announced refinements to the R&D Tax Incentive from 1 July 2028, including:
Higher offset rates
Lower intensity thresholds
Increased expenditure caps
Expanded access for younger growth businesses
For SMEs investing in technology, manufacturing, engineering or product development, these changes could improve the economics of innovation activity.
The Budget also includes:
Additional defence spending over the next decade
AI transition grants for SMEs
Skilled migration reforms
Regulatory compliance cost reduction targets
For businesses operating in engineering, logistics, manufacturing or technology supply chains, those investment flows are worth watching closely.
If your business invests in eligible R&D activity, the improvements to the R&D Tax Incentive from 1 July 2028 may be worth factoring into your innovation planning. Similarly, if your business operates in a sector likely to benefit from the defence and AI spending signals, the medium-term demand implications are worth understanding.
Your Findex advisor can help you identify which measures are most relevant to your business.
The biggest mistake businesses make after a Budget is reacting too quickly to headlines.
At this stage, much of the detail is still to come. But there are a few practical steps worth considering now:
Review how your business and personal wealth structures interact
Understand where your assets sit and why
Stress test your cash flow and investment assumptions
Revisit succession and exit planning if you operate through trusts
Prepare for possible valuation requirements ahead of July 2027
Get clear on how much of your wealth strategy relies on tax settings remaining unchanged
The businesses that navigate change best are usually the ones that already understand their position before the legislation lands.
That’s where integrated advice becomes important. Tax, business advisory, lending and wealth decisions increasingly overlap, and looking at them in isolation makes it harder to see the full picture.
This Budget creates a longer planning horizon for SME owners. The biggest impacts won’t happen tomorrow, but they could reshape business and wealth structures over the next few years.
The challenge for business owners now isn’t to panic or rush into restructuring. It’s to understand what these changes could mean for your business, your assets and your long-term plans, then make informed decisions as the detail becomes clearer.
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