With the 2026 Federal Budget delivering some new changes, the Australian Arab Business Council gathered at La Castelle in Bankstown on Wednesday night to discuss key changes with Farid Zaki from ATP Accounting & Taxation Professionals providing detailed insights.

Zaki discussed that the capital gains regime will be affected and pointed out that from July 1 2027, the 50% capital gains tax will be scrapped but replaced with cost-based indexation. Furthermore, he addressed other key changes from the budget that are vital for business leaders to understand, such as the government scrapping negative gearing for residential properties.

Additionally, a beneficial change he highlighted included properties within superannuation funds being excluded from now on. This will leave a positive change due to capital gains inside superannuation not changing, but trusts moving forward will now have to pay 30% tax.

Zaki pointed out that there were some changes to beneficiaries, with non-corporate beneficiaries now able to receive non- refundable credit and offset it against any tax liability they have. On the other hand, corporate beneficiaries will not be able to receive credit, and also, from the first of July, the government will introduce a working Australian tax offset. Moreover, if a company has been in business for less than two years, has losses in those two years and has paid fringe benefit tax, they are able to have FBT reduced and offset from their losses.

While the changes introduced in this year’s budget might not provide relief for every Australian, Zaki thinks its ok. “Its efffective, but it has a lot of changes that are affecting. Starting with capital gains tax going to negative gearing as well as some changes to the business and the circumstances where you can continue climbing the $20,000 instant asset write off, so there are some changes in that aspect,” he emphasised. Zaki urged the importance of looking at the structure of your business and changing it if you need to, mentioning that from 2028 trusts will be taxed, urging that it is something to watch out for.

Apart from getting key insights on the budget, the night was full of metworking, chatting, and attendees enjoying a complimentary dinner. The next event will be held next month at La Castelle.