A message from our Managing Partner,
On 12 May, the Federal Government delivered one of the most impactful Budgets in decades. There was some good news included, which you can read more about in our full Budget Report. However, significant and controversial taxation changes have also been proposed in relation to negative gearing, capital gains tax and discretionary trusts.
We are aware of the concern many of our clients have regarding these issues, particularly where longstanding structures have previously been implemented for taxation management, asset protection and estate planning. These structures may now need to be reviewed.
Our message is: do not panic. There is plenty of time to review your position and ascertain the best response, if any. Until we see the final legislation, we cannot provide definitive advice on any changes. However, please be assured that we are monitoring developments closely and will keep you informed.
We recently filmed a podcast episode in which we discuss what these changes may mean for business owners, investors and clients with existing structures in place. Please click below to watch the video.
I want to stress that discretionary trusts are not purely a form of tax reduction. They also form an important part of asset planning. This needs to be considered as part of any review, and we need to be careful not to adopt a one-dimensional view on this issue.
Equally important as we approach the end of the financial year is tax planning. If you have not booked a planning session, please do so. As a guide, please also refer to our Pre-30 June Checklist and Post-30 June Checklist.
Included in this newsletter is a link to a recent podcast on valuations, more specifically intellectual property valuations. Some of the general information on valuation is also interesting given the Budget changes to trusts may lead to significant restructuring, which may require valuations.
The ATO has also released a new app feature to stop spam calls which Australians can now use to instantly confirm whether a call claiming to be from the Australian Taxation Office (ATO) is genuine.
Lastly, please make sure you are ready for Payday Super from 1 July.
Kind Regards,
Leon Stephan
Managing Partner
Key Events & Dates
5 June
Lodge tax returns due for individuals and trusts with a lodgment due date of 15 May 2026 provided they also pay any liability due by this date.
Lodge tax return for companies and super funds with a lodgment due date of 15 May 2026 provided both the prior year and current year return will be non-taxable or result in a refund.
Note:
- This is not a lodgment due date but a concessional arrangement where failure to lodge on time (FTL) penalties will not apply if you lodge and pay by this date.
- Large and medium taxpayers and head companies of consolidated groups are excluded from this concession.
21 June
Lodge and pay May 2026 monthly business activity statement.
25 June
Lodge and pay 2026 Fringe benefits tax annual return for tax agents if lodging electronically.
30 June
Super guarantee contributions must be paid by this date to qualify for a tax deduction in the 2025–26 financial year.
If any of your clients receive Child Care Subsidy and Family Tax Benefit payments from Services Australia, the client and their partner must lodge their 2024–25 tax return by 30 June 2026, regardless of any deferrals in place. For more information, see the Services Australia website.
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