2026 June Newsletter
Tax Time 2026 Newsletter
Great news! The repair work from our December 2025 office flood caused by Yarra Valley Water is just about done. We can't thank you enough for sticking with us and being so patient through all the chaos, insurers work at a slower pace than the rest of us! Moving forward, we are continuing with our hybrid schedule; we will be split between working from home and the office, with in-office appointments open every Wednesday and Thursday. Zoom and phone meetings remain available from Monday through Thursday to keep things flexible for you.
As we approach the end of the financial year, it is time to start reviewing your financial records to ensure a seamless lodgment process, maximize your entitlements, and prepare for generational changes to Australian tax law.
.png)
The Australian Government’s recent 2026–27 Federal Budget introduced the most significant property, trust, and investment tax reforms in decades. While these measures are not yet law and are not intended to take full effect until 1 July 2027 or later, key grandfathering cut-offs apply now:
-
Negative Gearing Restrictions: From 1 July 2027, negative gearing on residential property will be limited strictly to new builds. For established residential properties purchased after 7:30 pm AEST on 12 May 2026, rental losses can no longer be offset against your salary. Instead, losses will be quarantined to offset only residential rental income or future capital gains.
-
Grandfathering Rules: Any investment property you purchased before 7:30 pm on 12 May 2026 is fully grandfathered. You can continue to access negative gearing under the current rules until the asset is sold.
-
Capital Gains Tax (CGT) Overhaul: From 1 July 2027, the standard 50% CGT discount for individuals and trusts will be abolished. It will be replaced with cost base indexation (adjusting for inflation using the CPI) alongside a new 30% minimum tax rate on capital gains. These reforms only apply to capital gains that accrue after 1 July 2027. Valuations of existing assets at 1 July 2027 will be needed please discuss with us what you need to do.
-
Pre-CGT Assets Warning: Crucially, the budget outlines plans to target historical assets acquired before 20 September 1985 (Pre-CGT assets). Under the proposed measures, these assets may lose their completely tax-exempt status upon certain triggering events or ownership shifts. If you hold pre-CGT assets, valuations as at 1 July 2027 will be needed, please ask us what you need to do before then.
-
30% Minimum Tax on Discretionary Trusts: In a sweeping anti-avoidance measure, a mandatory 30% minimum tax rate will apply to income distributed through discretionary (family) trusts from 1 July 2028. This heavily impacts strategies that involve distributing income to beneficiaries in lower tax brackets (such as adult children or retired parents). We will be reviewing all clients trust structures in detail once the rollover relief provisions for restructuring are released.
Other Key 2026 Tax Changes
-
Income Tax Rate Adjustments: New tax brackets are active. The 15% bracket now applies to taxable income between $18,201 and $45,000.
-
Work-Related Expenses: The ATO is enforcing strict record-keeping rules for working-from-home claims, motor vehicles, and travel expenses. Please note: While the Government announced a new $1,000 instant tax deduction allowing workers to claim work-related expenses without keeping receipts, this does not apply to your current 2026 tax return. The $1,000 instant tax deduction is not a $1,000 cash payment and accepting this duction will for many result in a smaller refund. If passed into law, this receipt-free deduction will first become available for the 2027 tax return (covering income earned from 1 July 2026). For this year's lodgment, you must still maintain valid receipts and logs for all work-related claims.
-
Rental Properties: High scrutiny continues for holiday homes and private usage. Detailed income and expense logs are mandatory.
Document Checklists
To help us expedite your tax return, please gather the following documentation before your appointment:
-
Income: Income statements, interest earned, and dividend statements.
-
Deductions: Receipts for work-related expenses, charitable donations, and professional subscriptions.
-
Property & Investments: Settlement statements for properties bought or sold, contract notes for shares bought or sold, cryptocurrency tax statements, and trust tax distribution statements.
How to Get Your Return Prepared
We offer multiple convenient ways to get your documentation to us and secure your spot:
-
Email: You can send your documents directly to our team via email.
-
SuiteFiles Connect: For maximum security, you can upload your files into your shared SuiteFiles Connect folder. If you do not have a folder set up yet but would like access, please send us a quick email and we will get you set up right away.
-
Online Booking System: To book a specific time for an in-office, Zoom, or phone consultation, please use our Online Booking System pick a slot that fits your schedule.
Next Steps
Don’t rush to get your tax return completed in the first few weeks of July. The ATO strongly recommends delaying the lodgment of tax returns until mid-to-late July. This allows employers, banks, and health funds enough time to automatically upload your financial details. Waiting ensures your pre-filled data is completely accurate, which prevents processing delays or costly amendment mistakes, creates less work for us and slows down processing of your returns.
Reply to this email, upload your files, or visit our Online Booking System to secure your lodgment appointment once you have all your documents ready.