Welcome to the July edition of our client newsletter. This month, we’ve compiled a selection of timely and practical insights across tax, superannuation and financial planning — helping you stay informed, confident, and in control of your financial decisions.

In this edition:

1. Family Trusts – Time to Get Some Timely Advice
If you have a family trust there are two recent major (very major) things that have happened that will affect the way they will be taxed in the future.

2. New Tax Legislation – When to Realise a Capital Gain
With the Budget changes now legislated, perhaps it’s time to consider more closely how they may affect you, and what you can do about it – especially in relation to the CGT discount changes.

3. Foreign Residents Cannot Get a CGT Exempt Home
If you are a foreign resident for tax purposes when you sell your Australian home, you cannot claim the usual capital gains tax exemption on it. This applies no matter how long you lived in the home. It applies even if you were only a foreign resident for a short time before the sale.

4. High Court Rules Unpaid Trust Amounts Are Not Loans
If your family trust gives a company a share of trust income but does not actually pay it across, the High Court has confirmed this is not automatically treated as a loan back to the trust. That matters, because being treated as a loan could trigger an unexpected tax bill under the rules known as Division 7A.

5. Borrowing in Your SMSF: What is Changing
Self-managed super funds are generally not allowed to borrow money. A limited recourse borrowing arrangement, or LRBA, is one of the few exceptions. It lets a fund borrow to buy a single asset, with the lender’s rights limited to that asset alone. If the loan goes bad, the lender can take the asset but cannot touch the rest of the fund. That protection is what makes the arrangement attractive to many trustees.

6. The New 30% Minimum Tax on Capital Gains
The Government has legislated major changes to capital gains tax (CGT). From 1 July 2027, the 50% CGT discount for individuals, trusts and partnerships will be replaced. In its place comes cost base indexation and a new 30% minimum tax rate on capital gains.

Please contact us for clarification, or further advice, regarding any of the topics covered in this newsletter.

ATO Key Dates
To view the ATO’s key dates for July, please click here.