2027-2028 Budget Highlights – TAX Related
- May 13
- 1 min read
Topics Covered
Download the complete Whitepaper
Discretionary (Family) Trusts
What is changing:
Taxed at 30% from 2027/28 – Trustee is responsible for payment, not beneficiary
Tax credit created is non-refundable
Beneficiaries who have a marginal tax rate of less than 30% will not be refunded the difference
Corporate beneficiaries will not receive non-refundable credits, leading potentially to double taxation
Capital Gains Tax
What is changing:
Existing assets – no change to rules if sold before 1 July 2027
Minimum tax rate of 30% will apply to capital gains from 1 July 2027 – existing rules apply until then.
Transition rules apply to assets purchased pre-1 July 2027 but sold after 1 July 2027
Negative Gearing
What is changing:
Existing negatively geared properties at 12 May 2026 continue to be deductable against other income.
From 1 July losses from negative gearing (Residential Property only) will only be deductible against other property income including capital gains, but can be carried forward
Future negative gearing only available for new residential property
Other notable changes include
$1,000 instant tax deduction (2026/27)
Working Australians Tax Offset $250 (2026/27)
Small business loss carry back (2026/27 and increased R&D tax incentives (2028/29)
If any of the above raises questions for you or your business, please contact our office.
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