Accountants at the centre of implementing landmark Budget changes
Chartered Accountants ANZ
Chartered Accountants Australia and New Zealand (CA ANZ) has described the 2026 Federal Budget as one of the most significant Budgets in recent times, as it fundamentally changes the taxation of capital and trusts.
“What’s announced tonight lands on the desks of Chartered Accountants tomorrow, who will need to work with Australian people and small businesses to understand and implement them,” said CEO of Chartered Accountants ANZ, Ainslie van Onselen.
"There are genuine positives in tonight's Budget, and we acknowledge the government's willingness to address some long-standing imbalances.”
“We encourage the Government to continue to prioritise fiscal prudence and not just increase taxes to address government spending.”
CA ANZ's Group Executive for Advocacy, Public and Government Affairs, Damian Ogden, said the Budget will be judged not on its announcements but on its outcomes.
“Implementing these reforms will require effective and timely consultation on both the design and draft legislation to ensure that unintended consequences are minimised.
“Chartered Accountants will be central to the successful implementation of any structural change, because they are the backbone of a well-functioning financial system,” Mr Ogden said.
Note to Editors: Chartered Accountants Australia and New Zealand’s response to individual Budget measures is outlined below.
CAPITAL GAINS TAX (CGT)
CA ANZ's Australian Tax and Superannuation Lead Susan Franks said tonight's Budget fundamentally rewrites the rules on capital gains.
“For the first time in 40 years, pre-1985 assets are being brought into the tax net. The 50 per cent discount is replaced by indexation, and a new 30 per cent minimum tax applies to all capital gains.
"Bringing pre-1985 assets into the tax net for the first time in 40 years is a significant step. Australians who have held assets their entire investment life need clarity and urgent advice on what this means for them,” Ms Franks said.
"The transitional arrangements will be costly as taxpayers will need to document the market value. Existing investors made long-term decisions based on the old rules and deserve stronger protection."
"These changes reshape the incentives for every investor in Australia. Property, shares, crypto, collectibles - if you have an investment portfolio, this Budget matters to you."
NEGATIVE GEARING
This year’s Budget delivers one of its most consequential announcements by fundamentally changing how negative gearing is applied to residential real estate.
The Government has restricted negative gearing to new residential properties, ending decades of tax concessions for investors in existing homes.
"Claiming deductions against income is a fundamental principle of Australia's tax system. Treating negatively geared property like non-commercial activities, such as hobby farms, will be contentious,” said Ms Franks.
"Taxpayers will now need to assess the cash flow impact of new investments that cannot be negatively geared, not just capital growth.
"The number of tax rules around investment properties keeps growing. This adds another layer of complexity that investors and their advisers will need to work through carefully,” Ms Franks said.
EV TAX CONCESSIONS
CA ANZ welcomes the Government’s decision to scale back the Electric Vehicle Fringe Benefits Tax (EV FBT) exemption.
“This is a sensible first step towards addressing a concession that has become increasingly expensive, and something we called for in our submission to the Economic Reform roundtable,” said Ms Franks.
“This stepped approach to reducing the tax concession continues to support EV uptake and acknowledges current challenges around fuel supply.
“Redirecting this support over time into better targeted incentives will also deliver stronger emissions reductions,” said Ms Franks.
TRUST DISTRIBUTION TAX
New rules for discretionary trusts, including a proposed 30 per cent minimum tax on distributions, could affect many small businesses.
"The trust system is complex and outdated. Without wider change, a flat 30 per cent rate adds complexity to an already broken system," said Ms Franks.
"If you use a trust, now is the time to talk to your Chartered Accountant and understand your options, including the best structure for your business."
WORKING AUSTRALIANS TAX OFFSET
"The Working Australians Tax Offset gives workers some immediate relief, but it doesn't fix the underlying problem,” said Ms Franks.
"With inflation still elevated, bracket creep continues to push Australians into higher tax bands without any increase in real income.
"Indexing personal tax thresholds is the only lasting fix. It restores fairness and stops quiet tax increases from eating into people's pay."
INSTANT ASSET WRITE-OFF
CA ANZ reiterates its support for the Government’s earlier announcement making the Instant Asset Write‑Off (IAWO) a permanent feature of the tax system in the 2026 Federal Budget.
“Small businesses have told us repeatedly that uncertainty around the Instant Asset Write‑Off makes it harder to invest and grow,” Ms Franks said.
“For years, short‑term, year‑to‑year thresholds have created confusion for businesses and advisers, undermining investment planning and adding unnecessary complexity.”
“Locking in a stable, long‑term setting is exactly the kind of practical reform we’ve been advocating for, as it cuts red tape, supports confidence and lets businesses focus on running and growing their operations, not second‑guessing the next Budget.”
CA ANZ said the reform demonstrates the value of stable, durable tax settings that provide clarity rather than uncertainty, and noted that it aligns with the organisation’s long-standing call for predictable frameworks that support productivity and long-term economic resilience.
“It’s a simple, effective measure that supports growth and strengthens the economic foundations Australia needs in a challenging global environment,” Ms Franks said.
ENDS.
About Chartered Accountants Australia and New Zealand
Chartered Accountants Australia and New Zealand represents more than 140,000 financial professionals, supporting them to make a difference to the businesses, organisations and communities in which they work and live. Chartered Accountants are known as Difference Makers. The depth and breadth of their expertise helps them to see the big picture and chart the best course of action.
www.charteredaccountantsanz.com
For more information:
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Zoe Delamare, Public Affairs Lead M +61 431 601 002 zoe.delamare@charteredaccountantsanz.com
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Owen Roberts, Public Affairs Specialist M +61 422 644 847 |