The Tax Ruling That Could Affect Every Family Trust in Australia
The High Court’s recent decision in Commissioner of Taxation v Bendel marks a significant shift in tax law, confirming that an Unpaid Present Entitlement (UPE) owed to a corporate beneficiary is an equitable right rather than a "loan" under Division 7A rules. While this ruling offers welcome relief for many taxpayers who use family trusts, it is far from a "get out of jail free" card; the decision relies on specific legal facts and does not shield taxpayers from other critical integrity provisions like Section 100A and Subdivision EA. As the Australian Taxation Office prepares updated guidance, trust owners should look past the headlines and understand that their tax obligations remain deeply dependent on their specific trust deeds, historical conduct, and how funds are truly being distributed within their group.
Preparing for the 2027 Capital Gains Tax Changes
The federal government's proposed capital gains tax reforms, set to take effect on 1 July 2027, will reshape the investment landscape for millions of Australians. While much of the public debate has focused on property, the changes reach far beyond real estate, affecting shares, managed funds, and business interests held by individuals, trusts, and partnerships. At the heart of the reform is a structural shift away from the existing 50% CGT discount toward inflation-adjusted indexation, accompanied by a new 30% minimum tax on real gains that will catch even low-income investors who have historically paid less. For investors, the message is clear: the passive, set-and-forget approach that served previous generations well is no longer fit for purpose
June 2026 Market Updates
May 2026 was a month that reminded investors, homeowners, and households alike that the economy rarely moves in a straight line. On global markets, the S&P 500 powered to a remarkable 5.15 per cent gain as a blistering corporate earnings season and a US-Iran ceasefire extension lifted sentiment, while the ASX 200 struggled under the combined weight of a Reserve Bank rate hike and a federal budget that rattled property markets and stoked inflation fears. Closer to home, the national property market effectively hit pause, with Sydney and Melbourne recording further declines even as Perth and Darwin continued to push higher. Meanwhile, the latest inflation data offered a mixed picture: headline CPI eased to 4.20 per cent in the year to April, but the trimmed mean crept higher to 3.40 per cent, keeping the door open to another rate rise when the RBA board reconvenes in June. There is plenty to unpack this month, so let's get into it.
Australia’s Biggest CGT Shake-Up in Decades is Coming
The 2026-27 Federal Budget has proposed the most significant overhaul of Australia's capital gains tax system in nearly three decades. From 1 July 2027, the familiar 50 per cent CGT discount, a cornerstone of investment planning since 1999, is set to be replaced by an inflation-adjusted indexation model accompanied by a new 30 per cent minimum tax on real gains. For property investors, shareholders, and anyone sitting on long-held assets, the changes will fundamentally alter how investment returns are calculated and taxed. With transitional rules, new build carve-outs, and the surprise inclusion of pre-1985 legacy assets all forming part of the package, understanding the detail now, well ahead of the 2027 start date, will be essential.
Is Your Family Trust Facing a Minimum 30% Tax Rate?
The 2026-27 Federal Budget has put family trusts firmly in the government's crosshairs. If proposed new rules become law, trustees of discretionary trusts will be required to pay a flat 30 per cent minimum tax on trust income from 1 July 2028. This is a fundamental departure from the income-splitting flexibility that has made these structures so attractive to Australian families and small business owners for decades. With bucket company arrangements effectively penalised, transitional rollover relief on the horizon, and the fixed trust distinction harder to satisfy than many assume, the implications are wide-ranging. Here is what you need to know.
Federal Budget 2026-27
The 2026-27 Federal Budget has landed with some of the most significant structural tax changes in a generation. Treasurer Jim Chalmers has overhauled the rules for property investors, winding back negative gearing to new builds only and replacing the long-standing 50% capital gains tax discount with inflation-indexed gains and a 30% minimum tax rate. Family trusts face a new 30% minimum tax from 2028, while workers get a $250 permanent tax offset and an immediate $1,000 work-related deduction. For motorists, fuel excise has been temporarily halved and the electric vehicle FBT exemption is being phased out over three years. Here is what it all means for your finances.
May 2026 Market Updates
April 2026 was a month of stark contrasts across financial markets, with Wall Street posting its strongest monthly performance since November 2020 while Australian investors navigated a more turbulent path shaped by oil price volatility, geopolitical anxiety, and a domestic rate environment that only tightened further. The S&P 500 surged more than 9%, powered by a blockbuster corporate earnings season and the relentless momentum of AI-driven spending, while the ASX 200 clawed back a modest gain after giving up most of a mid-month rally. On the ground, Australia's property market continued to fragment along geographic lines, with Perth, Brisbane, and Adelaide pushing higher as Sydney and Melbourne softened. And this morning, the Reserve Bank delivered a third consecutive rate rise, lifting the cash rate to 4.35% in an 8–1 vote, as the Middle East conflict keeps fuel prices elevated and inflation stubbornly above target.
The Psychology of Grief and Wealth Protection
When a loved one passes away, the profound emotional weight of grief can make financial decision-making incredibly difficult. The shock of bereavement can overwhelm individuals, sometimes leading them to spend an inheritance quickly to avoid painful reminders, or freeze completely out of a fear of making the wrong choice. Traditional estate planning focuses purely on the distribution of assets, often ignoring this heavy emotional toll. To truly support your family, a modern wealth transfer strategy must include a built-in psychological safety net. By implementing practical legal structures and clear communication, you can shield your loved ones from the immediate pressures of sudden wealth and give them the breathing space they need during their toughest days.