Armadale Chamber Federal Budget Workshop with Melvyn R Gilbert, Fortuna Advisory Group
Understanding a Federal Budget is one thing. Understanding what it could actually mean for your business, investments and future financial decisions is another.
That was the focus of our July Federal Budget Workshop.
We are incredibly grateful to Melvyn for generously giving his time and sharing his expertise with our local business community. Rather than simply looking at the headlines, Melvyn explored some of the Budget measures that business owners and investors should be considering as they plan for the years ahead.
His key message was an important one: don't wait until changes take effect before considering what they could mean for your business or investment structure.
Here are some of the major areas covered during the workshop.
More certainty around the $20,000 instant asset write-off
One of the positive measures highlighted for small businesses was the $20,000 instant asset write-off.
According to the presentation, from 1 July 2026 the $20,000 threshold becomes permanent for eligible small businesses with aggregated turnover below $10 million.
This means eligible assets costing less than $20,000 each can be immediately deducted rather than depreciated over several years.
For local businesses considering purchasing equipment, technology, tools or eligible vehicles, the certainty of an ongoing threshold could make capital expenditure planning easier.
Assets costing $20,000 or more would continue to enter the small business depreciation pool.
The practical takeaway: before making a significant business purchase, speak with your accountant about the timing of the investment and whether the asset qualifies.
Loss carry-back could provide important cash-flow support
Cash flow remains one of the biggest challenges facing small and medium businesses, and another measure discussed by Melvyn was loss carry-back for companies.
The presentation explained that eligible companies may be able to offset a current-year revenue loss against tax paid in the previous two years, potentially generating a refund.
There are important eligibility requirements and limitations, including the company's franking account balance, and the measure applies to companies rather than sole traders or trusts.
For businesses experiencing fluctuating profitability, this could make tax planning an increasingly important part of managing cash flow.
Other changes businesses should have on their radar
Melvyn also discussed several other measures that could affect business owners over the coming years, including:
- the option to move to monthly PAYG instalments from 1 July 2027, potentially helping some businesses smooth their tax payments and cash flow;
- a proposed $1,000 instant deduction for work-related expenses;
- the $250 Working Australians Offset, which the presentation notes will also include sole traders; and
- the removal of 497 tariffs on imported goods, potentially reducing input costs for some importers and retailers.
The presentation also highlighted expanded venture-capital tax incentives aimed at supporting high-growth businesses.
Not every measure will be relevant to every business, but understanding what is changing creates an opportunity to plan rather than react.
Property investment strategies may need to change
A significant part of the workshop focused on property, particularly because many small business owners also hold property as part of their personal wealth or retirement strategy.
Melvyn's presentation outlined proposed changes to negative gearing and capital gains tax from 1 July 2027.
Under the measures presented, residential properties owned before the Budget-night cut-off would be grandfathered, while the treatment of established residential properties acquired after the relevant date would change.
For affected established properties, rental losses would no longer be able to offset salary or other income from 1 July 2027. Instead, losses would generally be quarantined and carried forward to offset residential rental income or property gains.
New-build residential property would receive different treatment, retaining negative gearing benefits under the measures outlined.
The broader policy direction discussed at the workshop was clear: tax incentives are increasingly being directed towards creating new housing supply rather than purchasing existing housing stock.
For business owners considering property as part of their investment strategy, this makes the choice between established property and new construction increasingly important.
Capital gains tax also requires attention
Melvyn also took attendees through proposed changes to the way capital gains could be calculated from 1 July 2027.
The presentation outlined a move from the existing 50% CGT discount for eligible assets towards a model involving inflation indexation and a minimum tax treatment.
Importantly, the presentation highlighted the need for property and asset owners to understand how the transition date could affect future calculations and whether valuations may be required.
The main residence exemption was identified as remaining unchanged.
For investors with substantial property, shares or other appreciating assets, this is an area where getting advice well before a future sale could become particularly important.
Discretionary trusts are firmly in the spotlight
Perhaps one of the most significant discussions for business owners involved discretionary and family trusts.
Trusts have long been used by Australian families and business owners for asset protection, succession planning and the distribution of income.
The Budget measures outlined by Melvyn propose a 30% minimum tax on discretionary trust income from 1 July 2028.
Under the proposal described in the presentation, trustees would pay 30% tax on taxable income upfront. Individual beneficiaries would receive a non-refundable credit for that tax when declaring the income.
Melvyn also highlighted the potential impact on traditional "bucket company" strategies, where trust income is distributed to a corporate beneficiary.
The presentation illustrated how the interaction of the proposed trust tax, company tax and eventual taxation of dividends could significantly change the effectiveness of these arrangements.
For business owners operating through a discretionary trust, the message wasn't to panic or immediately restructure.
It was to review whether your existing structure will continue to serve its intended purpose under the proposed rules.
There may be a window to reconsider business structures
Another important point from the workshop was that business owners may have time to plan.
The presentation outlined a proposed three-year restructuring window from 1 July 2027 to 30 June 2030, potentially allowing eligible assets to be moved into alternative structures using rollover relief.
Options discussed included companies and fixed trusts, while retaining a discretionary trust may still make sense for asset protection, succession or other purposes.
However, restructuring a business is rarely just a tax decision. Capital gains tax, stamp duty, asset protection, finance arrangements, succession planning and legal consequences all need to be considered.
That's why planning early matters.
The bigger lesson: know your numbers and plan ahead
One of the most valuable outcomes from the workshop was not any single tax measure.
It was the reminder that business owners need to understand how government policy can affect their cash flow, investment decisions and business structures well before a change takes effect.
Some practical questions local businesses may want to discuss with their advisers include:
- Is my current business structure still appropriate for where the business is heading?
- Are there equipment or capital investments I should incorporate into my tax planning?
- Could loss carry-back affect my company's cash-flow strategy?
- If I operate through a discretionary trust, should that structure be reviewed?
- How could proposed property and CGT changes affect my investment strategy?
- Are there important dates over the next few years that I should start planning for now?
The answer will be different for every business.
Thank you to Melvyn and Fortuna Advisory Group
On behalf of the Armadale Chamber, we would like to sincerely thank Melvyn R Gilbert and Fortuna Advisory Group for sharing their time, knowledge and expertise with our local business community.
Having an experienced adviser break down complex Budget announcements into practical considerations gave the 21 business owners attending the workshop an opportunity not only to understand the changes, but to start thinking about what questions they should be asking about their own businesses.
This is exactly what our Chamber workshops are designed to achieve: connecting local businesses with expertise, practical knowledge and information that can help them make stronger business decisions.
Thank you, Melvyn, for supporting our local business community and for an informative and engaging session.
A final note
The information discussed at the workshop and summarised in this article is general in nature and is based on the 2026–27 Federal Budget measures presented by Fortuna Advisory Group. Some measures may be subject to legislation, consultation, amendment or further clarification before taking effect.
Business structures, tax, property investment and superannuation decisions can have significant financial and legal consequences. Business owners should seek professional advice based on their individual circumstances before making decisions or restructuring.
Source: Fortuna Advisory Group – 2026–27 Federal Budget Briefing, presented to the Armadale Chamber.
Please click here to download Melvyn’s Presentation Slides.
