The 2026 tax changes explained: what's now law and what business owners should do
There's been a lot of noise about this year's tax changes, and plenty of it has been alarmist. As a firm that stays across this for a living, here's a calm, accurate rundown of what's actually happened, what it means for business owners, and what's worth doing now.
Capital gains tax: this one is law
The big one has passed. From 1 July 2027, the 50% CGT discount is replaced by an inflation-indexed cost base plus a minimum 30% tax on the real gain. It became law in June 2026. It applies to individuals, trusts and partnerships across most assets, shares, business goodwill, investment property.
Two things everyone's missing about it. First, it only applies to gains that build up after 1 July 2027, so everything you've built before then keeps the old rules. Second, there's real help for business owners: the small business CGT concession threshold has been lifted from $2 million to $10 million, and the broader small business concessions stay in place.
Negative gearing: also changing
Negative gearing on established residential investment properties is being wound back for properties acquired from 12 May 2026. It doesn't affect shares, managed funds or commercial property, and properties bought before that date are protected.
Discretionary trusts: announced, but not law yet
This is the one still up in the air. The government has announced a 30% minimum tax on discretionary trust income from 1 July 2028, which would reduce the benefit of splitting income to family members on lower rates. But it is not yet law, hasn't been finalised, and comes with a proposed three-year rollover relief to help people restructure. So there's no need to panic-restructure a trust right now.
The one genuinely useful action
If you own a business or investment assets and might sell after 1 July 2027, the smartest move is to establish a defensible market valuation of your assets at that transition date. That value determines how much of your gain is taxed under the old, better rules versus the new ones. Without it, the tax office uses a generic formula that can cost you. It's the single most valuable bit of planning most owners haven't thought about.
The bottom line
The CGT changes are locked in, the trust changes aren't yet, and there's more good news for small business than the headlines admit. The owners who come out ahead won't be the ones who panic. They'll be the ones who understand their position early and plan around it. That's what we're here for. If you want to know how any of this affects your specific situation, let's have a chat.