William Buck acknowledges the scale of the Government’s tax agenda in the 2026 Federal Budget but believes the budget has delivered a piecemeal approach to reform that risks creating more uncertainty than it resolves for businesses, investors and families across Australia.
Todd Want, Head of Tax Services, said the Budget introduces sweeping changes to some of the most foundational elements of the tax system without addressing the structural issues.
“The Government has moved decisively on CGT, negative gearing and trusts, but these are not just revenue measures. They are changes that cut directly into how Australians manage their wealth, plan for retirement and protect their families,” Todd said.
“Replacing the CGT discount with cost base indexation and a minimum tax rate, restricting negative gearing to new builds and introducing a minimum tax on discretionary trusts each fundamentally change the planning landscape for ordinary Australians. Layering them together without addressing the broader complexity of the system compounds the problem.”
Mr Want said the breadth of the changes across CGT, negative gearing and trusts will force a fundamental rethink of how Australians plan their property investments.
“These changes do not exist in isolation. The interplay between a new CGT regime, restricted negative gearing and a minimum tax on trusts compounds the complexity for anyone navigating property, retirement or succession planning,” he said.
“Discretionary trusts have been a cornerstone of structuring for small businesses and professionals for decades. They serve genuine purposes around asset protection, succession planning and managing intergenerational wealth. A blanket minimum tax does not account for that diversity, and the rollover window to restructure does not reflect how long it takes to unwind arrangements that have been built over many years.”
Mr Want said that while the Budget includes measures aimed at supporting small businesses, including a permanent instant asset write-off and the reintroduction of loss carry back, the scale of these concessions does not match the ambition of the changes being imposed elsewhere in the system.
“Making the instant asset write-off permanent is welcome after years of uncertainty, but it is a low bar. Small businesses are still navigating one of the most complex tax systems in the developed world, and a permanent write-off does not change that. The reintroduction of loss carry back is a step in the right direction, but these measures feel incremental against the scale of change being imposed elsewhere,” Todd said.
William Buck continues to advocate for a comprehensive review of Australia’s tax system that considers the structuring needs of everyday Australians and delivers a simpler, more equitable framework for businesses, investors and families.
