Budget 2026–27: Why Tax Planning Has Never Been More Critical for Small Business and Property
The 2026–27 Federal Budget has delivered the most sweeping tax reforms in a generation. For small business owners, property investors, and developers, the message is clear: reactive tax management is no longer enough. Strategic, proactive planning is now essential.
The Landscape Has Shifted
From July 2027, negative gearing on residential property will be restricted to new builds only, and the long-standing 50% CGT discount will be replaced with a CPI indexation model subject to a 30% minimum effective tax rate. These are not minor adjustments — they fundamentally alter the after-tax return on property investment and development decisions made today.
For developers, the distinction between new and existing property has never carried greater tax weight. Projects that qualify as new residential builds will retain negative gearing concessions and may offer investors a choice between the old and new CGT rules — a powerful marketing advantage in a competitive market.
Small Business Cannot Afford to Stand Still
The permanent $20,000 instant asset write-off is welcome, but it is just one piece of a broader puzzle. With CGT concessions on business asset sales still intact, structuring your business correctly — whether through a company, trust, or sole trader arrangement — directly determines how much of your sale proceeds you actually keep.
Tax planning isn’t a year-end exercise. It’s an ongoing strategy that aligns your business structure, asset ownership, and timing of transactions with the current law — before changes take effect.
The Cost of Inaction
Waiting until 2027 to review your position could mean the difference between thousands of dollars saved and thousands unnecessarily paid to the ATO.
Platinum Advisory works with small business owners, investors, and developers to build tax strategies that are compliant, forward-thinking, and tailored to your goals. Reach out today — planning now is the smartest investment you can make.
