0:00
22:57
2026 Federal Budget - CGT Discount Replaced, Negative Gearing Curtailed, and Discretionary Trusts Hit with Minimum Tax
Late on Budget night Toby Eggleston, Ryan Leslie and Nick Heggart discuss Treasurer Chalmers’ budget, focused on reshaping personal tax, especially capital gains and discretionary trusts, under “intergenerational equity.”
Corporate measures are smaller, including re-announced non-resident CGT changes with intended retrospectivity to 2006 and limited transitional relief for renewables to 30 June 2030, expanded VCLP/ESVCLP investment caps, and R&D offset tweaks forecast to reduce tax by $1.5b. Small business changes include making the instant asset write-off permanent, a refundable loss offset for startups from 1 July 2028, and a permanent loss carry-back for companies under $1b turnover.
Major personal reforms include phasing out the 50% CGT discount from 1 July 2027 (replaced by cost-base indexation and a 30% minimum CGT tax), taxing pre-CGT assets, limiting negative gearing for post-budget residential purchases (except new builds), and imposing a 30% minimum tax on discretionary trusts from 1 July 2028 with complex impacts, especially for “bucket companies,” plus proposed restructuring rollovers amid stamp duty issues.
00:10 Budget Night Kick-off
00:41 Corporate Tax Overview
01:53 Non-Resident CGT Reboot
03:14 Venture Capital and R&D
05:16 Small Business Reliefs
06:20 Loss Carry-back Returns
08:44 Big Shift to Personal Tax
08:47 CGT Discount Ends
10:52 Tech and Startup Fallout
15:01 Negative Gearing Overhaul
16:51 Discretionary Trusts Seismic
21:37 Late Night Wrap Up
More episodes from "Herbert Smith Freehills Kramer Podcasts"
Don't miss an episode of “Herbert Smith Freehills Kramer Podcasts” and subscribe to it in the GetPodcast app.
