Written by Michael Walsh | Associate Director
As the end of the financial year approaches, EOFY Tax Planning 2026 should be a priority for investors, business owners and professionals. Reviewing your tax position before 30 June can help you maximise available opportunities and prepare for proposed Federal Budget 2026 changes.
Federal Budget Proposals to Watch
Changes for Property Investors
- The Government has proposed changes to negative gearing and Capital Gains Tax (CGT) that could affect future property investments.
- Under the proposal, established residential properties purchased after 12 May 2026 would no longer qualify for traditional negative gearing benefits from 1 July 2027. Existing properties would generally remain protected under grandfathering provisions.
- The Government has also proposed changes to the current 50 per cent CGT discount. The proposal would replace the discount with an indexation method and a flat 30 per cent tax rate on future gains. Investors may need to obtain asset valuations before any new rules commence.
Small Business Measures
- The proposed permanent extension of the $20,000 instant asset write-off would continue to provide valuable tax planning opportunities for eligible small businesses with turnover of up to $10 million.
- The Budget also includes proposed tax loss carry-back measures that could improve cash flow for eligible companies.
Changes to Discretionary Trusts
- The Government has proposed a 30 per cent minimum tax rate on discretionary trust income from 1 July 2028.
- While the proposal remains subject to legislation, trustees should continue monitoring developments and consider how future changes may affect their structures.
EOFY Tax Planning Opportunities
Maximise Superannuation Contributions
- Superannuation remains one of the most effective EOFY tax planning strategies.
- Eligible individuals may be able to claim deductions for concessional contributions of up to $30,000. Those with unused contribution caps from previous years may also qualify for catch-up contribution opportunities.
Review Rental Property Deductions
- Property investors should review all available deductions, including depreciation, interest, insurance, repairs and loan-related expenses.
- A current depreciation schedule can often uncover valuable tax savings.
Review the Timing of Income and Expenses
- Business owners and self-employed professionals may benefit from bringing forward deductible expenses or deferring income where appropriate.
- Careful timing can help manage tax liabilities before year end.
Trust Distribution Planning Before 30 June
- Trust distribution resolutions must generally be completed before 30 June each year.
- Missing this deadline can lead to significant tax consequences. The ATO also continues to scrutinise trust arrangements under Section 100A, making proper documentation and professional advice increasingly important.
Upcoming Superannuation Changes
Payday Super
- From 1 July 2026, employers will need to pay Superannuation Guarantee contributions on payday rather than quarterly.
- Businesses should start reviewing payroll systems and cash flow processes ahead of these changes.
Division 296 Tax
- Individuals with larger superannuation balances should also remain aware of the proposed Division 296 tax measures.
- While the proposal only affects a relatively small number of Australians, it may have significant implications for long-term retirement planning.
Need EOFY Advice?
With EOFY fast approaching, now is the ideal time to review your tax position, maximise available opportunities and ensure key deadlines are met.If you would like assistance with EOFY tax planning, trust distributions, superannuation strategies or understanding how the proposed Federal Budget changes may affect you, contact the Walshs team at enquiries@walshs.com.au or (07) 3221 5677.
