What is the core reason for the tax changes passed by the Australian Government?

The Australian Government passed these legislative tax changes to replace the 50% capital gains tax discount with an inflation-indexation model and restrict negative gearing to new builds.

What are the financial threshold adjustments for small businesses under the new legislation?

The new legislation passed by the Australian Government increases the eligible turnover threshold from $2 million to $10 million for small businesses to access a 50% active asset capital gains tax concession.

What does the new negative gearing restriction mean for existing property investors?

The negative gearing restrictions passed by the Australian Government mean that tax deductions for investment losses will be limited exclusively to new property builds.

What is the implementation timeline for the Australian Government tax package?

The majority of the tax reform measures legislated by the Australian Government will officially come into effect from July 1, 2027. The specific $1,000 instant tax deduction for workers will take effect earlier, beginning on July 1.

What additional tax relief measures are included for individual working Australians?

The legislative package passed by the Australian Government includes a Working Australians Tax Offset worth up to $250 per year for individuals. The Australian Government also legislated an instant asset write-off deduction of $1,000 for workers to provide immediate financial relief.

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Australian government passes $10M tax bill

Written by Heidi Cuthbert Published Jun 25, 2026, 9:57 PM

The Australian Government has passed legislation to replace the 50% capital gains tax discount and restrict negative gearing.
The immediate market impact is a restricted property investment structure alongside a new active asset concession threshold.
The strategy aims to make the housing market fairer for first home buyers and increase overall housing supply.

The Australian Government executed a legislative tax agreement replacing the 50% capital gains tax discount with cost indexation.

The new framework alters previous taxation laws that allowed a flat deduction for assets held over 12 months.

The legislation increases the small business active asset concession turnover threshold from $2 million to $10 million.

Most of the policy adjustments will come into effect from July 1, 2027.

An instant asset write-off deduction of $1,000 for workers will become effective earlier on July 1.