Estate planning is often treated as something to complete once and revisit only when there is a major life event. But changes to tax settings, asset values, family circumstances and business structures can all affect whether an estate plan still works the way it was intended.
Following the 2026-27 Federal Budget, this is a timely moment for business owners, investors and families with more complex asset structures to review their estate planning arrangements.
The Government has announced several tax changes that may affect how assets are held, transferred and eventually dealt with as part of an estate plan. These include proposed changes to negative gearing, capital gains tax and discretionary trusts. While many of these measures are not immediate, they may influence planning decisions now, particularly where property, business assets, investment portfolios or family trusts are involved.
Estate planning is not only about having a valid will. It is about understanding what you own, how those assets are structured, who controls them, what tax consequences may arise and whether your wishes can be carried out effectively.
Why the 2026 Budget matters for estate planning
The 2026-27 Federal Budget included several measures that may be relevant to long-term asset and succession planning.
From 1 July 2027, the Government has announced that negative gearing for residential property will be limited to new builds. Properties held before Budget night, being 7:30pm AEST on 12 May 2026, are expected to be exempt from these changes. Investors who purchase established residential property after that time may still be able to deduct losses against residential property income and carry forward excess losses, but may not be able to deduct those losses against other income such as wages.
The Budget also announced changes to capital gains tax from 1 July 2027. The existing 50% CGT discount is expected to be replaced with a discount based on inflation, with a minimum 30% tax rate on capital gains. The Government has stated that these changes are intended to apply only to gains that accrue from 1 July 2027 when those gains are realised.
For discretionary trusts, the Government has announced a minimum tax rate of 30% from 1 July 2028, with some exceptions. Treasury has also stated that rollover relief will be available for three years from 1 July 2027 to support small businesses and others that may wish to restructure.
These changes may not require immediate action for every client. However, they do make it important to review whether existing structures are still appropriate and whether asset values, ownership arrangements and succession plans are properly documented.
The role of asset valuations
One of the key practical issues likely to arise from the proposed CGT reforms is asset valuation.
Where tax outcomes depend on when a gain has accrued, it may become important to understand the value of certain assets at a particular point in time. For clients who hold investment properties, business interests, shares or trust assets, valuations may become an important part of future tax and estate planning records.
This does not mean every client needs to rush into obtaining valuations immediately. However, it does mean asset records should be reviewed carefully.
For example, clients may need to consider whether they have accurate records of acquisition dates, purchase prices, improvement costs, ownership interests, refinancing history, trust distributions and prior valuations. These records can be very difficult to reconstruct years later, particularly where assets have been held for a long time.
For business owners, valuations may also be relevant for succession planning, buy-sell agreements, shareholder arrangements, trust restructures and intergenerational transfers.
The earlier these issues are reviewed, the easier it is to make informed decisions.
Estate planning is also about control
A good estate plan should consider more than who receives an asset.
It should also consider who controls the structure that owns the asset.
This is particularly important where assets are held through companies, family trusts, self-managed super funds or business entities. In these situations, the will may not automatically control every asset or decision. The relevant company constitution, trust deed, shareholder agreement, partnership agreement, SMSF deed or binding death benefit nomination may also need to be reviewed.
For example, if a family trust holds business or investment assets, the key estate planning questions may include:
Who controls the trustee?
Who has the power to appoint or remove the trustee?
Who are the beneficiaries?
How are trust distributions likely to be affected by future tax changes?
Does the trust deed still allow the structure to operate as intended?
Would the intended people have control if the current controller passed away or lost capacity?
These governance issues can be just as important as the tax issues. A technically valid will may still fail to achieve the intended outcome if control of the relevant structure has not been properly considered.
Don’t forget powers of attorney and decision-making documents
Estate planning is not only about what happens after death. It also includes planning for what happens if a person loses capacity during their lifetime.
In Queensland, an enduring power of attorney allows a person to appoint someone they trust to make decisions on their behalf if their decision-making capacity becomes impaired. This can include financial and personal matters, depending on how the document is prepared.
This is especially important for business owners and people who control trusts, companies, properties or investments. If the person who makes key decisions for a business or family structure loses capacity and there is no appropriate decision-making document in place, the practical and financial consequences can be significant.
It is also important to understand the limits of these documents. For example, an attorney cannot make or change a person’s will. This is why estate planning documents should be prepared and reviewed while the person still has capacity and before urgent decisions are required.
CGT and inherited assets
Capital gains tax can also be an important consideration in estate planning.
In many cases, CGT does not apply at the point an asset is inherited. However, CGT may become relevant if the beneficiary or legal personal representative later sells or otherwise disposes of the inherited asset.
The ATO notes that inherited property can be subject to CGT when it is later sold, although exemptions may apply depending on factors such as whether the property was the deceased’s main residence, when it was acquired and how it was used.
The cost base of inherited assets can also be important. Depending on the type of asset and when it was acquired, the market value at the date of death may be relevant to future CGT calculations.
This is one reason estate planning should include good record keeping. Asset values, ownership history and supporting documents can make a significant difference when tax outcomes need to be determined later.
Trusts and family wealth planning
Family trusts have long been used for asset protection, business succession and family wealth planning. The proposed minimum 30% tax rate for discretionary trusts from 1 July 2028 may change the way some families think about these structures.
This does not mean discretionary trusts will no longer have a role, or that changes will necessarily be required. Trusts can still be useful depending on the family’s circumstances, asset protection needs, business arrangements and long-term goals. However, the proposed changes make it even more important to review whether a trust remains suitable, whether the deed is current, and whether the structure is still being used for the right reasons.
Clients should also be cautious about making changes purely for tax reasons. Restructuring can have legal, tax, stamp duty, asset protection and succession consequences. In some cases, changing a structure may solve one problem while creating another.
A careful review should consider the full picture.
What should clients review now?
For business owners, investors and families with trusts or significant assets, now is a sensible time to review:
Your will and whether it reflects your current wishes.
Enduring power of attorney documents and who has authority to make decisions if you lose capacity.
Business succession arrangements, including company control, directorships and shareholder agreements.
Trust deeds, appointor roles, trustee control and beneficiary arrangements.
SMSF deeds and binding death benefit nominations.
Property ownership and whether assets are held personally, jointly, through a company, through a trust or through superannuation.
Asset records, including purchase dates, cost base information, improvements and valuations.
Potential exposure to CGT, trust tax changes and changes to negative gearing.
Whether your intended beneficiaries could be affected by tax, control or asset protection issues.
Estate planning should be reviewed after major life events, such as marriage, separation, divorce, the birth of children or grandchildren, the purchase or sale of major assets, business changes, retirement, illness or the death of a key family member. However, major legislative and tax changes can also be a good reason to review the plan.
A proactive review is better than a rushed one
The purpose of reviewing your estate plan is not to make rushed decisions. It is to identify what may need attention and make sure the right advice is obtained early.
The Budget changes are still developing, and the final impact will depend on legislation, guidance and individual circumstances. However, clients with property, trusts, businesses or significant investment assets should not wait until a transaction, death or dispute forces the issue.
A proactive review gives you time to understand your current position, update records, seek legal advice where needed and make informed decisions about the future.
Estate planning is ultimately about clarity, control and certainty. The right plan can help protect your family, support business continuity and reduce the risk of unnecessary tax, conflict or confusion later.
If you have not reviewed your estate plan recently, or if you hold assets through trusts, companies, superannuation or business structures, now is a good time to start the conversation.
The Advivo team can help you review the tax and structuring considerations and work alongside your legal advisers to ensure your estate planning arrangements remain appropriate.
Speak with Advivo about your estate planning and structure
