By Joshua Occhino, Co-founder, Ezyiah
Short answer: As of 2 November 2026, most of the major tax measures from the 12 May 2026 Budget are law. The CGT and negative gearing reforms, the Working Australians Tax Offset and the $1,000 instant tax deduction were enacted in June 2026. The permanent $20,000 instant asset write-off and loss carry-back were enacted in August 2026. The 30% minimum tax on discretionary trusts is still a bill before Parliament. Start-up loss refundability has no bill yet. Status is taken from the ATO's new legislation page.
Where does each Budget measure stand?
| Measure | Start date | Status (as at 2 November 2026) |
|---|---|---|
| CGT discount replaced by indexation plus 30% minimum tax; negative gearing limited to new builds | 1 July 2027 | Law. Tax Reform No. 1 Act 2026, Royal Assent 26 June 2026 |
| Working Australians Tax Offset | 1 July 2027 | Law. Tax Reform No. 1 Act 2026, Royal Assent 26 June 2026 |
| $1,000 instant tax deduction for work-related expenses | 1 July 2026 | Law. Tax Reform No. 1 Act 2026, Royal Assent 26 June 2026 |
| $20,000 instant asset write-off made permanent | 1 July 2026 | Law. Tax Reform No. 2 Act 2026, Royal Assent 26 August 2026 |
| Loss carry-back for companies | 1 July 2026 | Law. Tax Reform No. 2 Act 2026, Royal Assent 26 August 2026 |
| 30% minimum tax on discretionary trusts | 1 July 2028 | Not law. Tax Reform No. 3 Bill 2026, introduced 14 October 2026 |
| Start-up loss refundability | 1 July 2028 | No bill yet (TBD) |
| Dynamic PAYG instalments | 1 July 2027 | Not law. Tax Reform No. 4 Bill 2026, introduced 27 October 2026 |
| R&D Tax Incentive changes | 1 July 2028 | Not law. Tax Reform No. 4 Bill 2026, introduced 27 October 2026 |
Bills can change before they pass. Check the ATO page for the latest status before advising.
What changes for CGT and negative gearing?
According to the ATO's summary, from 1 July 2027 the 50% CGT discount for individuals, trusts and partnerships is replaced by cost base indexation together with a 30% minimum tax. The change applies to gains accruing after 1 July 2027. Negative gearing is limited to new builds, and properties held at the time of the Budget announcement (7:30pm AEST, 12 May 2026) are exempt. Companies aren't affected. Some new housing keeps access to the discount, so check the ATO page for the carve-outs.
For firms, the practical work is identifying clients with significant unrealised gains and modelling the before-and-after position ahead of 1 July 2027.
What about the discretionary trust minimum tax?
The Government announced a 30% minimum tax on discretionary trusts from 1 July 2028. It applies at the trustee level, and non-corporate beneficiaries can claim a non-refundable credit for tax the trustee paid. A three-year restructure rollover is proposed to help move assets out of discretionary trusts. The bill was introduced on 14 October 2026 and passed the House of Representatives on 29 October 2026. It is still before the Senate, so it isn't law yet. Model the impact, but don't restructure until the rules are final.
Which measures help small business now?
- Instant asset write-off. Assets costing less than $20,000 each, for businesses under $10 million turnover, permanently from 1 July 2026. See the $20,000 instant asset write-off is now permanent.
- Loss carry-back. Corporate tax entities under $1 billion turnover can offset a revenue loss against tax paid in the two prior years, from 2026–27. See loss carry-back for companies.
How Ezyiah helps
Ezyiah is an AI bookkeeper with its own double-entry ledger. It keeps clients' books current from live bank feeds, with the BAS, P&L, Balance Sheet, Depreciation Schedule and EOFY Statement built from the same records. Your firm can then spend its time on the modelling and advice these changes call for, rather than catch-up bookkeeping. Your accountant reviews and approves before anything is lodged.
See Ezyiah for accounting firms.
Frequently asked questions
Is the CGT discount change law?
Yes. It was enacted by the Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (Royal Assent 26 June 2026) and starts on 1 July 2027.
Is the discretionary trust minimum tax law?
Not as of 2 November 2026. The Tax Reform No. 3 Bill was introduced on 14 October 2026 and is still before Parliament.
When does the $1,000 instant tax deduction start?
From the 2026–27 income year (1 July 2026). See working from home deductions.
