Reading Room - Taxation
On 3 September 2026, Treasury released exposure draft legislation for the proposed 30% minimum tax on discretionary trusts, announced in the 2026-27 Federal Budget.
The 50% capital gains tax discount for individuals, trusts and partnerships is abolished, replaced by CPI cost base indexation and a 30% minimum tax on real gains.
A Commonwealth penalty unit increased from $330 to $364 on 1 July 2026, having a direct and immediate effect on many Australian Taxation Office penalties.
From the 2026-27 income year employees and sole traders can claim a flat $1,000 deduction for work-related expenses without keeping a single receipt.
Superannuation contribution caps have increased offering an opportunity to build retirement savings or reduce taxable income through super contributions.
If you employ staff, Payday Super affects you directly and immediately – employers must now pay superannuation guarantee within 7 business days of each payday.
Understanding where the ATO is focusing attention is the best way to lodge a return with confidence and avoid a time-consuming compliance review.
One of the big structural changes in the 2026-27 Budget is the introduction of a minimum 30% tax on the income of discretionary trusts, effective from 1 July 2028.
Under the Budget, the full FBT exemption will be phased out and replaced with a permanent 25% FBT discount and existing arrangements will be grandfathered.
