2026 Pre-EOFY Newsletter
Welcome to our Pre-EOFY Newsletter. In this special issue, we have provided information on the following topics:
- Office updates – WE’RE MOVING!!
- Reminder: Making super contributions before the end of the financial year
- Reminder: Don’t Forget to Meet Your Minimum Pension Withdrawal Requirements Before 30 June
- Instant Asset Write-Off: Permanent Deduction for Small Businesses
- 2026-2027 Federal Budget – Key Proposed Changes
- The Medicare Levy Surcharge (MLS) income threshold will change for the 26/27 financial year
- Division 296 on Large Super Balances over $3million: Now Law and Takes Affect on 1 July 2026
Office Updates – WE’RE MOVING!!
You’ve spoken and we listened!
One of the challenges we have faced with our current office has been client parking. Face to face meetings remain an important part of our service and therefore given the expiry of our current lease we’ve decided to move.
Our new office at 7/71 Leichardt Street Kingston means a designated client parking space can be offered. You can literally park at our front door!! For all those clients with appointments In June we will see you at our existing office in Barton. For all clients with appointments from 1st July we look forward to welcoming you to our new office in Kingston!!
Reminder: Don’t forget to make super contributions
As we are fast approaching the end of the financial year, please don’t forget that if you would like to make super contributions time is fast running out. We recommend making the payment as soon as possible, as it may take 3 days or more for a contribution to be received if using BPAY. Don’t leave it until the last week.
Please note that contribution caps and eligibility rules do apply. To claim a tax deduction for your personal contributions, you must be under 67 years of age OR, you must meet the work test or qualify for the work test exemption. For non-concessional contributions you must be under 75 and have a total super balance of less then $2,000,000 as of 30.6.2025.
The concessional contributions cap is increasing to $32,500, and the non-concessional contributions cap is $130,000 for the 2026–2027 financial year.
Reminder: Don’t Forget to Meet Your Minimum Pension Withdrawal Requirements Before 30 June
For our super fund clients, if you haven’t withdrawn your minimum pension for this financial year, it is time to do it!
You will be able to find the exact amount of your minimum pension requirement on the cover letter of your financial statements issued to you for the 2024/25 financial year.
We also recommend you attend to this as soon as possible because sometimes the processing time does take longer than you might think. Give it at least one week to be safe.
If you’re unsure of your minimum amount or whether you’ve met it, feel free to reach out to us — we’re here to help make sure everything is in order before the deadline.
Instant Asset Write-Off: Permanent Deduction for Small Businesses
For businesses considering equipment, vehicles, or other asset investments, now could be the time to act – especially with end of financial year approaching.
The Instant Asset Write-Off allows eligible businesses to deduct the full cost of eligible assets costing less than $20,000.
Who is eligible?
- Small businesses with an annual turnover of less than $10 million.
What can be claimed?
- New or second-hand assets (excluding certain ineligible items).
- Multiple assets, provided each is under the $20,000 threshold.
As part of the 2026-2027 budget the government announced it will permanently increase the instant asset write-off to $20,000.
Please note – this measure is still in announcement stage and will require Parliamentary approval to become law.
2026-2027 Federal Budget – Key Proposed Tax Changes
The Federal Budget included several proposed tax changes that may affect individuals, investors and business owners. While these measures are not yet law, they are important to be aware of:
- CGT changes (from 1 July 2027): The 50% capital gains tax discount is proposed to be replaced with an inflation-indexed system and a 30% minimum tax on capital gains. As such assets will need to be valued at 30.6.2027.
- Negative gearing changes (from 1 July 2027): Negative gearing on residential property would generally be limited to new builds (grandfathered for geared properties before budget night).
- Working Australians Tax Offset (from 2027–28): A proposed annual tax offset of up to $250 for eligible workers.
- Permanent instant asset write-off: Eligible small businesses with turnover under $10 million will continue to be able to immediately deduct eligible assets costing less than $20,000.
- Discretionary trusts (from 1 July 2028): A 30% minimum tax rate has been proposed for certain trust distributions.
As these measures are currently proposals only, we will continue to monitor developments and provide updates as legislation progresses.
The Medicare Levy Surcharge (MLS) income threshold will change for the 26/27 financial year
The Medicare Levy Surcharge (MLS) is a levy paid by Australian taxpayers who do not have private hospital cover and who earn above a certain income. The surcharge aims to encourage individuals to take out private hospital cover, and where possible, to use the private system to reduce the demand on the public Medicare system.
The new surcharge and income thresholds levels applicable for the 2026-27 financial year will be:
| Threshold | Base tier | Tier 1 | Tier 2 | Tier 3 |
| Single threshold | $105,000 or less | $105,001 – $122,000 | $122,001 – $163,000 | $163,001 or more |
| Family threshold | $210,000 or less | $210,001 – $244,000 | $244,001 – $326,000 | $326,001 or more |
| Medicare levy surcharge | 0% | 1% | 1.25% | 1.5% |
Single parents and couples (including de facto couples) are subject to family tiers. For families with children, the thresholds are increased by $1,500 for each child after the first.
For the 2026-27 financial year, you have to pay the surcharge if you are:
- a single person with an annual taxable income for MLS purposes greater than $105,000; or
- a family or couple with a combined taxable income for MLS purposes greater than $210,000. The family income threshold increases by $1,500 for each dependent child after the first;
- and do not have an approved hospital cover with a registered health insurer.
Division 296 on Large Super Balances over $3million: Now Law and Takes Affect on 1 July 2026
From 1 July 2026 if your Total Super Balance (TSB) at the end of the financial year exceeds $3,000,000 you will be subject to the Division 296 tax of 15% on the proportion of earnings relating to your TSB that exceeds $3,000,000.