Brown Hamilton Partners

29/05/2026

We’ve been slowly drip feeding the budget announcements through to you in bite-sized pieces. Today, we provide the final offering.

Take a few minutes to watch our recent video and see what applies to you.

The consultation process is now underway, and while the big headlines around trusts and property have dominated the conversation, there are several other bud...

28/05/2026

The Future of the Family Trust: the third big budget announcement...

Is it the death of the trust? Maybe not quite, but significant change is certainly on the table.

While much of the attention has focused on the proposed CGT and negative gearing reforms, one of the most significant announcements is the proposed taxation changes for discretionary trusts. If implemented, these measures will fundamentally change how discretionary trusts are used for asset ownership, investment and business structures from 1 July 2028.

So, what has been proposed?

- The changes would apply only to discretionary trusts.
- Trust taxable income would be taxed at a flat 30% rate within the trust.
- That tax paid would flow through to individual and non-corporate beneficiaries as a tax credit.
- Importantly, those credits would be non-refundable (unlike franking credits). This means beneficiaries on tax rates below 30% would effectively still pay tax at 30% on trust distributions, removing much of the traditional benefit of distributing to lower-tax-rate family members.
- Corporate beneficiaries would not receive any credit for tax already paid by the trust. In effect, this would create double taxation on distributions to companies and significantly reduce the effectiveness of corporate beneficiary structures.

What happens next?

At this stage, these are announcements only, and there is still a consultation and legislative process to unfold. The detail will matter enormously. The Government has indicated that restructuring relief will be available. This should provide an opportunity over the next two years to transition businesses and assets into more suitable structures without triggering capital gains tax consequences.

We will also need to see whether State Governments introduce corresponding stamp duty relief.

Importantly, there have been no announced changes to the Small Business CGT concessions. These rules may continue to provide valuable opportunities for business owners operating through trusts to restructure efficiently and, in some cases, advantageously.

For now, there is no need for rushed decisions. Once draft legislation is released, we will be able to properly assess the impact and map out practical next steps for affected clients. If you would like to discuss how these proposed changes may affect your structure, please get in touch on (03) 9848 4458.

27/05/2026

Today, we want to dig into two of the key changes announced in the recent budget: negative gearing and capital gains tax (CGT).

First, what do we actually mean by “negative gearing”? In simple terms, it’s where you have an investment running at a tax loss, and that loss is used to reduce your other taxable income. Before anyone panics, let me affirm that these announcements do not apply to:

- Negative gearing arrangements within a Self Managed Super Fund
- Negative gearing arrangements relating to shares
- Negative gearing on commercial property

The proposed changes are specifically focused on residential investment property. If that applies to you, read on.

If you already owned a negatively geared residential investment property prior to Budget night, your existing arrangement will remain intact. You can continue to claim rental losses against your other income under the current rules. The proposed changes are aimed at properties purchased after Budget night.

Under the proposal, from 1 July 2027, rental losses on newly acquired residential investment properties will no longer be able to be offset against other income. Instead, those losses can only be carried forward and used against future rental profits or capital gains on residential property investments.

There is, however, an important exception.

Negative gearing would still be available for genuine new builds. That is, properties that genuinely add to housing supply, rather than knock-down rebuild projects. For those who already own investment properties and are breathing a sigh of relief, there is another layer to consider.

The proposed capital gains tax changes are designed to create a trade-off. Existing owners may retain access to negative gearing, but from 1 July 2027 they will lose access to the capital gains tax discount when they eventually sell the property. As a result, there will be significant planning and modelling required to assist in making the best decision for your circumstances.

As for CGT, here are the important points:

- From 1 July 2027, the 50% CGT discount will no longer apply to individuals, partnerships or trusts. This is proposed to apply across all asset classes.
- At this stage, the 1/3 CGT discount available to superannuation funds appears unaffected.
Companies also remain unchanged, as companies have never had access to the CGT discount.
- Pre-CGT assets (acquired before 20 September 1985) will no longer be fully exempt from CGT after 1 July 2027. Current indications are that growth up to 1 July 2027 will remain exempt, while any growth after that date will become taxable.

So what replaces the discount?

The Budget announcements indicate a return to an indexation-style system linked to CPI. In simple terms, this aims to tax only the “real” gain above inflation. In addition, gains accruing after 1 July 2027 will be subject to a minimum 30% tax rate. The policy intention appears to be preventing taxpayers from deferring asset sales until lower-income years, such as retirement.

There is, however, one important exception.

Investors purchasing new residential properties will reportedly be able to choose between the existing 50% CGT discount, or
the new CPI indexation method.

So perhaps the CGT discount isn’t entirely gone after all — it may simply become targeted toward those investing in new housing supply.

It is important to remember that these are still announcements only. There is still a legislative process to work through before any of these measures become law. We’ll continue to keep you updated and help you navigate the changes so you can make informed decisions and plan for the best possible outcome.

25/05/2026

Please have a look at our recent LinkedIn post which introduces some of the headline items from the recent budget. Over the coming days, we will be providing more bite-sized updates regarding negative gearing, capital gains tax, and more specific details regarding how small businesses will be affected. Stay tuned!

There’s been a lot going on lately, and the recent budget has certainly added to that. There are some significant proposed changes ahead that are clearly designed to reshape how Australians structure businesses and investments. That said, before everyone rushes off to panic or overhaul everything ...

23/04/2026

Do you know how your business is performing? Or do you rely on "vibe", a good (or bad) feeling on the day or the balance of your bank account?

Ultimately, if you don't know or understand your numbers, you don't know your business. Hope is not a financial strategy, and being busy doesn't make you profitable.

Take a look at Rochelle's encouragement today towards financial clarity.

Busy… But Are You Actually Moving Forward?

20/04/2026

Where are Your Finances Leaking?

Right now, it’s very easy to point to rising costs, tighter margins, and general business pressure when asking, “where is all the cash going?”. And yes, those pressures are real, but there’s often something quieter (and far more within your control) happening in the background…financial leaks. Not the big, obvious expenses, but the small, forgotten ones. The “only $30 a month” charges that quietly stack up and drain your cash all without you noticing.

Think of this post as your permission slip to do a "financial spring clean".

First stop, the usual suspects: subscriptions. These are almost always your easiest wins. That app you trialled two years ago, the extra software license you aren’t using anymore.

Individually, they don’t feel like much, but collectively, they can be costing you thousands a year. And it’s not just your business.

Take a quick look at your personal finances too. How many streaming services are you paying for that you barely use? How many subscriptions are quietly renewing each month without you even noticing? Same principle, just a different bank account.

So where do you start? Not with a full overhaul, just a simple reset:

1. Take a look under the hood: Grab the last few months of bank and credit card statements and approach them head-on.

2. Call it out: Go line by line and highlight anything that makes you pause. If you have to stop and think about what it is, that’s usually a sign it’s worth a closer look.

3. Ask one simple question: “Would I sign up for this again today?” If the answer is no (or even “probably not”), it’s worth reviewing.

4. Trim, cancel or combine: Cut what you don’t need, and streamline what you do. Keep it simple.

5. Make a habit: Pop a quarterly reminder in your calendar to review your ongoing subscriptions (future you will be very grateful).

This isn’t about being ruthless with every dollar, it’s about being intentional with where it is spent. Because every dollar you free up is a dollar you can redirect into growth, into your team, or simply into giving yourself a bit more breathing room.

When you’ve got a clear view of where your money is going, things start to feel lighter, decisions get easier, pressure reduces and you are able to feel the clarity and freedom that comes from creating options for your business.

Want a second set of eyes?

If you’re not sure what to look for, or just don’t have the time, we can help. A quick review can often uncover opportunities you didn’t even realise were there. Let’s plug the leaks, free up some cash, and get you back in control.

10/04/2026

We all love an exciting footy game, except for Carlton supporters at the moment...How can a team consistently lose games in the final quarter, when it really counts?!

The lesson for every business owner is this; don’t be like Carlton! We are now in the final quarter of the financial year, and it's time to make the strong run to the end.

Take a look at Wednesday's video for the best coaching tip to keep you on your game.

The end of the quarter is usually treated as a routine checkpoint, but there is often more happening beneath the surface than most realise.In this video, we ...

18/03/2026

With rising petrol costs, another interest rate increase, and key compliance deadlines approaching, there’s a lot happening right now for business owners.

Where should your focus actually be?

Take a look at today’s video for a short, but encouraging take on where to focus your energies.

Rising costs, another interest rate increase, and key deadlines are all putting pressure on businesses right now. In this video, we walk through where to foc...

13/03/2026

Give our recent LinkedIn article a read if you've ever wondered what might be happening beneath the surface of your business...

Give our recent article a read if you've ever wondered what might be happening beneath the surface of your business...

23/02/2026

Have you ever agreed to help out a friend without thinking it through? Do you know what responsibilities come with being a company director, even temporarily?

If you’ve ever considered stepping in to help a friend’s company, our recent video is worth your time. Take a look below to see why it’s important to check the details before saying yes.

Thinking of becoming a company director, even temporarily? This video explains the responsibilities you inherit, the potential personal liabilities, and why ...