Growthwise

Growthwise Not your average nerdy, pen pushing, sit-behind-a-desk small business accountants. Accounting, Tax, We offer more than small business accounting.

We offer small business accounting on steroids that focuses on your entire business to automate, streamline and improve your systems, processes and profits. On top of ticking off your standard accounting requirements, we’ll provide you with meaningful number insights to help you nail your strategy + take care of your tax needs so that you can concentrate on growing your business and achieving your

goals. Our number ninjas are on call to zap, kapow and smash their way through your accounting paperwork with the latest web weapons, so you don't get buried in admin. Our focus is on helping you Think, Learn, Grow and Kick-Arse

13/05/2026

Here's our recap video after last nights Federal Budget announcements

12/05/2026

Winners

Workers: $250 Working Australians Tax Offset from 2027-28, plus the $1,000 instant deduction from 2026-27.

Small business: permanent $20,000 instant asset write-off, loss carry back, and start-up loss refundability.

Fuel supply / transport: major fuel security package, fuel reserves and temporary fuel excise cut.

EV drivers: existing/concessional FBT treatment continues with transitional rules, though the full exemption winds down later.

Losers / Watch Closely

Investors: CGT discount replaced by indexation from 1 July 2027.
Landlords: negative gearing restricted for established homes acquired after Budget night.

Family trusts: 30% minimum tax from 1 July 2028.

Retirees/non-workers: Working Australians Tax Offset is for work income, not investment/retirement income.

12/05/2026

💰 CAPITAL GAINS TAX: This Is Not Just About Property

This is one of the biggest tax changes in the Budget.

From 1 July 2027, the current 50% capital gains tax discount will be replaced with cost base indexation for assets held for more than 12 months.

There will also be a 30% minimum tax on net capital gains.

Here is how the new rules break down:

If you sell before 1 July 2027:
The current 50% CGT discount still applies, assuming you are eligible.

If you already own an asset:
You are not completely “grandfathered” forever. The Budget says gains arising before 1 July 2027 can still use the 50% discount, but gains arising after that date fall under the new system.

If you own a pre-CGT asset:
This is a big one. The Budget says the new rules will apply to pre-1985 assets too. Gains arising before 1 July 2027 remain exempt, but growth after that date may be brought into the CGT system.

If you buy a new residential property:
There is a special carve-out. Investors in new residential properties will be able to choose either the 50% CGT discount or indexation plus the minimum tax.

If you own shares, business assets, farms or investment properties:
The Budget says this applies to all CGT assets held by individuals, trusts and partnerships. So this is much broader than housing!

What this means in practice:

The 50% discount was simple: make a $100,000 gain on an asset you owned for more than 12 months, only $50,000 is taxable.

Indexation is different. It increases your cost base for inflation, then you pay tax on the remaining gain. That can be better or worse depending on the asset, and depending on inflation.

For assets with a decent original cost base and long ownership, indexation may help.

But for assets with a low or nil cost base, like a business you started from scratch, indexation is TERRIBLE.

Example: if you started a business with a nil cost base and sell it for $5 million, there is nothing much to index. Losing the 50% discount makes an enormous difference. Assuming you qualify for the small business CGT concessions you would pay tax on $1.25m under the 50% discount method vs tax on $2.5m under indexation.

The big takeaway:
This is not just a property investor issue. It will affect business sales, family farms, shares, trusts, partnerships and long-held family assets. We have 1 year before the changes kick in so it will be very important to review assets and when you plan on selling.

12/05/2026

Income Tax Rate Cut

Effective 1 July 2027 the 2nd marginal tax rate decreases to 15% (currently 16%) for income between $18,201 and $45,000). This will automatically happen with the 1st pay post 1 July for employees.

Practically anyone over $45k taxable income will get $268 extra per year

12/05/2026

🚀 START-UPS: Cash Refunds for Early-Year Losses

Calling all founders! The government is introducing a brand new, highly targeted tax offset specifically to support small start-up companies through their cash-burning phase.

For tax years commencing on or after 1 July 2028, start-ups with an aggregated annual turnover of less than $10 million that generate a tax loss in their first two years of operation will be able to utilize that loss to generate a refundable tax offset.

What this means in practice:
If you are heavily investing in growth during your first two years and operating at a loss, you can essentially "cash out" that tax loss rather than waiting years to become profitable to use it.

The fine print:
This offset isn't a blank cheque. The refund you can claim is strictly limited to the value of the Fringe Benefits Tax (FBT) and the withholding tax (PAYGW) you have paid on wages for your Australian employees during that loss year.

12/05/2026

📉 LOSS CARRY BACK: The Ultimate Cashflow Booster

This is a win for small and medium businesses. Loss Carry Back is officially back!

If your company has an aggregated global turnover of less than $1 billion (ok, that's all of our clients!), starting from 1 July 2026, you will be able to offset a current tax loss against taxes you’ve paid in the previous two years to get a refund.

What this means in practice: Let's say you had a killer year in FY26, made a $100k profit, and paid $25k in tax. But then, you invest heavily or hit a rough patch in FY27 and run at a $60k loss. Under the new rules, you don't just carry that loss forward to some unknown future year. You can carry it back to offset your FY26 profit. Doing this would trigger a $15k cash refund straight back into your bank account, yes please

The fine print:

It applies to revenue losses only.

Your refund is limited by your company's franking account balance.

12/05/2026

🏦 FAMILY TRUSTS: The 30% Minimum Tax

This is a huge change for family groups and small businesses that use discretionary trusts.

From 1 July 2028, discretionary trusts will have a 30% minimum tax on taxable income.

Here is how the new rules break down:

If you run a family trust:
The trustee will need to pay a minimum 30% tax on the trust’s taxable income.

If you distribute to adult beneficiaries on low incomes:
This is where the big change hits. At the moment, distributing income to family members on lower tax rates can reduce the overall family tax bill. Under the new rules, the trust income will still be subject to at least 30% tax.

If the beneficiary is already on a higher tax rate:
They should receive a non-refundable credit for the tax paid by the trustee, so the 30% is not necessarily extra tax in every case. It is more of a “tax floor”.

If your trust is not discretionary:
The rules do not apply to every trust. The Budget says fixed trusts, widely held trusts, complying super funds, special disability trusts, deceased estates and charitable trusts are excluded.

Important carve-outs:
Some income is also excluded, including primary production income, certain income relating to vulnerable minors, and some income from existing discretionary testamentary trusts.

What this means in practice:
Family trusts are not dead, but the tax planning benefit of distributing income to low-income adult family members is being heavily restricted.

For small businesses, the government has flagged expanded rollover relief for three years from 1 July 2027, to help those who want to restructure out of discretionary trusts into another structure, such as a company or fixed trust.

Don’t panic and restructure tomorrow. For those of you who have Family Trusts we will review the ongoing strategy as part of tax planning this year.

12/05/2026

🏠 NEGATIVE GEARING: The Big Shake-Up

This is a massive shift for property investors. The government is heavily restricting negative gearing to push investment toward new housing supply. Here is how the new rules break down:

If you already own an investment property: You are safe. Existing properties are "grandfathered," meaning nothing changes and you can keep claiming your rental losses against your other income (like your salary) to reduce your tax bill.

If you buy a brand-new build: You are also safe. The current negative gearing rules will still apply to eligible newly constructed homes.

If you buy an existing home between tonight and 30 June 2027: You get a short grace period. You can negatively gear it against your other income until 1 July 2027. After that date, those losses can no longer offset your broader income (like your wage or salary). Instead, they must be carried forward to offset future residential property income (like rent or capital gains).

If you buy an existing home after 1 July 2027: Negative gearing against your salary is completely off the table.

What this means in practice:
If you buy an established (not new) property from tonight onwards, your days of getting a tax refund from property losses are numbered. Once the transition period ends on 1 July 2027, those losses are locked away until the property makes a profit or you sell it.

12/05/2026

$1,000 INSTANT TAX DEDUCTION
There has been a lot of chatter about simplifying personal tax returns. This is being delivered by way of a standard $1,000 tax deduction. What this means is you don't have to keep receipts, you can simply claim $1,000 as a deduction. Now it's important to understand this IS NOT $1,000 tax back. It's a deduction which means for most people that equates to a tax refund of between $300-$450. This doesn't start until 1st July 2026, ie next tax year.

12/05/2026

INSTANT ASSET WRITE OFF
Let's start with some good news for small businesses
The Treasurer has confirmed the Instant Asset Write Off will be made permanent at the $20k threshold (currently legislated only until 30 June 2026). This is huge for planning – small businesses (

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