Reform Property

🚨 Why the Smart Money May Start Moving Into SMSF Property Investing After the 2026 Budget

The conversation around property investing is changing rapidly in Australia.

With proposed Capital Gains Tax reforms, changes to investment incentives, and one of the biggest shifts to the property landscape we’ve seen in over 25 years…

I believe many smart investors are about to start looking much more seriously at buying property through a Self-Managed Super Fund (SMSF).

Here’s why 👇

Most investors are focused on what they might LOSE from the new rules…

But experienced investors ask a different question:

👉 “Where is the smartest place to move capital next?”

And for many Australians, the answer could increasingly be inside super.

💥 Why SMSF property investing may become more attractive:
✅ Rental income inside super is generally taxed at only 15%
✅ Capital gains inside super can be discounted significantly
✅ In pension phase, rental income and capital gains can potentially become TAX FREE
✅ Lower tax environment compared to personal ownership
✅ Ability to build long-term wealth using pre-tax income contributions
✅ Greater focus on sustainable retirement wealth instead of speculative investing

Now combine that with the proposed CGT changes outside of super…

And suddenly, SMSFs become a VERY different conversation.
Here’s a simple real-world example 👇

Let’s say an investor sells a property in their personal name and makes a $300,000 capital gain.

If that property was purchased BEFORE the new proposed CGT changes and the rules are grandfathered, that investor may still retain access to the current CGT treatment and existing tax concessions.

That’s one of the reasons many current investors may HOLD their existing properties longer moving forward.

But if another investor purchases a property AFTER the new CGT rules come into effect, the tax outcome could potentially look very different.

Depending on the final legislation and their income level, a much larger portion of that gain could potentially be exposed to higher marginal tax rates with reduced CGT concessions.

Now compare that to an SMSF structure…

Inside an SMSF, if the property is held longer than 12 months, the capital gain may effectively only be taxed at 10%.

And if the SMSF is in pension phase?

That capital gain could potentially become TAX FREE.

That’s a massive difference over the long term.

This is why I believe the next wave of investors will become far more strategic about:
✔ Ownership structures
✔ Tax efficiency
✔ Cash flow
✔ Long-term wealth preservation

And with the end of the financial year just around the corner, now may be one of the most important times in years to sit down with your accountant or financial adviser and discuss:
➡ Additional super contributions
➡ SMSF suitability
➡ Long-term property strategy
➡ How the new CGT landscape could affect future wealth creation
Because this isn’t just another policy adjustment…

This could become one of the biggest structural changes to Australian property investing we’ve seen in the last 26 years.

The investors who understand structure and tax efficiency early may put themselves in a very strong position over the next decade.
As always — strategy matters more than hype.

If you want to learn more about how SMSF property investing works and why many investors are starting to pay closer attention to it in today’s market, send me a message.

🚨 Discretionary Trusts Are About To Change — Here’s What Smart Business Owners & Investors Need To Understand

One of the biggest conversations coming out of the new Federal Budget isn’t just property…

It’s how discretionary trusts may be treated moving forward and what this could mean for families, investors, and business owners who use them for tax planning.

For years, discretionary trusts have allowed families and businesses to distribute income to lower income earners within the family group.

Simple example 👇

Let’s say a business makes $200,000 profit.

Under the traditional discretionary trust structure, that income could potentially be distributed across:
✔ Husband
✔ Wife
✔ Adult children
✔ Family members on lower tax brackets

This helped reduce the total tax payable across the family group.

But what the government is trying to do now is limit “income splitting” purely for tax minimisation purposes — especially where income is being directed to lower income earners who may not actually be working in the business.

That’s where things start changing.

Now before everyone panics…

💰 This does NOT mean trusts suddenly become useless.

It simply means investors and business owners may need to become more strategic with HOW money flows.

And this is where many accountants are now having very different conversations with clients.

One of the biggest shifts may be moving from:
➡ End-of-year distributions
TO
➡ Structured wages and payroll throughout the year

Why does this matter?

Because instead of simply distributing profits at tax time, many business owners may instead choose to legitimately pay wages to spouses or family members who are actively involved in the business.

And here’s the interesting part…

📈 Wages can actually help with PROPERTY SERVICEABILITY.

Banks generally love consistent PAYG income.

So instead of receiving a once-a-year trust distribution, structured wages may:
✔ Improve borrowing capacity
✔ Improve serviceability
✔ Create cleaner income evidence for lenders
✔ Potentially help with future investment property purchases
The trade-off?

It means proper payroll systems, PAYG withholding, super obligations, and regular payments throughout the year instead of just a distribution at EOFY.

This is why tax planning may now need to happen MUCH earlier than before.

Waiting until June and “figuring it out later” may no longer be the best strategy under the new environment.

In fact, some possible strategies business owners and ABN holders may begin discussing with their accountants include:
✔ Invoicing through existing trust or business structures where legitimately applicable
✔ Reviewing how money flows between entities
✔ Looking at additional super contributions before EOFY
✔ Reviewing whether wages vs distributions make more sense moving forward
✔ Cleaning up bookkeeping and payroll systems earlier in the financial year

Now there are also some important exemptions and considerations people need to understand.

Certain pensioners and people receiving income support payments may still receive different treatment or exemptions depending on their structure and circumstances.

And distributions to bucket companies will also need much closer attention moving forward.

Why?

Because depending on how the new rules are applied:
➡ Some bucket company income may potentially be taxed closer to 30% instead of 25%
➡ GST obligations may also need consideration in some circumstances
➡ Although if income remains under the $75,000 GST threshold, GST registration may not apply

Again — this is where strategy and planning become critical.
The biggest takeaway?

🚨 The government isn’t trying to stop people building wealth.

They’re trying to stop passive income shifting purely to lower tax brackets.

And smart investors and business owners will adapt by changing STRUCTURE and CASH FLOW strategies — not by panicking.

This is why I believe the next few years will reward:
✔ Early tax planning
✔ Better structuring
✔ Strong bookkeeping
✔ Cleaner business systems
✔ Smarter lending preparation

One thing is certain:
The people who sit down with good accountants and advisers EARLY will likely put themselves in a far stronger position moving forward.

⚠ IMPORTANT:
This is general information only and NOT accounting or financial advice. Everyone’s situation is different, and you should absolutely speak with your accountant or financial adviser before making decisions around structures, distributions, wages, super contributions, or investment strategies.

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