SEPTEMBER NEWSLETTER - 2026

LOSS CARRYBACK PROVISIONS

The tax offset starting from the 2026–27 income year, allowing eligible corporate entities to offset current-year revenue losses against tax paid in either or both of the previous two income years, has been permanently reinstated

INSTANT ASSET WRITE OFF

Starting 1/7/2026, the Instant asset write off, for assets under $20,000 threshold, has now been permanently reinstated.

The asset must be installed ready for use in the income year in which you claim it.

You can claim multiple assets, as long as each one is less than $20,000

If you are registered for GST, and it is an input tax credit, then as long as the net amount is less than $20,000 you are good to go.

Negative gearing to be grandfathered for inheritances and relationship breakdowns

Last minute amendments to the Treasury Laws Amendment (Tax Reform No. 2) Bill 2026 ('the Bill') also addressed the controversial so-called 'widow tax'

These amendments (in Schedule 4 of the Bill) ensure that properties acquired before the 2026/27 Budget retain access to negative gearing in certain circumstances.

This includes allowing an individual to retain this treatment for an ownership interest in a property where:

• the property was acquired from a spouse as a result of an inheritance or relationship breakdown.
• or the individual inherits part of a property in which they already had an ownership share.

Where an interest in a new residential dwelling is acquired in these circumstances, the amendments also preserve the choice between applying the 50% CGT discount or applying cost base indexation and the minimum tax on capital gains.