Renting out your home and the CGT and
negative gearing changes
Welcome to the August 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:
- RENTING OUT YOUR HOME – AND THE CGT AND NEGATIVE GEARING CHANGES: One of the many areas where the big changes to negative gearing and Capital Gains Tax may have an effect is where you use the “absence concession” to allow you to “continue to treat” your home as your CGT-free main residence during an extended absence from the home – including where you rent it out for up to 6 years during this period.
- THE WHEELS NOW IN MOTION FOR FAMILY TRUST CHANGES: With the Government set to impose a minimum 30% tax on discretionary or “family” trusts from 1 July 2028, it’s probably time to start thinking about what you should do about any existing family trust you have.
- WHAT YOU NEED TO RETIRE: The Latest Numbers: Have you ever wondered how much superannuation you will have and need in retirement? The answer is it depends on a range of factors, such as your lifestyle goals, whether you have paid off your mortgage, your financial situation, whether you live a relatively healthy lifestyle, your likely life expectancy, and so on.
- SALARY SACRIFICING TO SUPER: Are you an employee thinking of putting some of your pre-tax income into superannuation to boost your retirement savings? This is known as salary sacrifice, and the good news is that it can benefit you and your employer.
- SHOULD YOU SELL BEFORE 1 JULY 2027?: From 1 July 2027, the way capital gains are taxed for individuals, trusts and partnerships is set to change. The 50% CGT discount will be replaced by cost base indexation and a new 30% minimum tax on real gains.
Bonus reads this month:
THE MINIMUM 30 TAX ON CAPITAL GAINS
The changes to Capital Gains Tax (CGT) and negative gearing announced in this year’s Budget – and which are now law – are quite monumental, and they will affect a lot of taxpayers. Read ir here: <https://docs.google.com/document/d/1zpyWuhVmpmUHFCJJgoaTS113nrMy-qGD/edit?usp=sharing&ouid=101064953211312294293&rtpof=true&sd=true>
Who can be an SMSF trustee?
Every member of a self-managed super fund must also be a trustee of the fund, or a director of its corporate trustee. Before you set up a fund or add a new member, it pays to check that everyone is eligible. Getting this wrong can stall your registration or expose you to penalties. Read it here: <https://docs.google.com/document/d/1pZb0FVluKYD92IBBFlqst0nRBCSfZn3d/edit?usp=sharing&ouid=101064953211312294293&rtpof=true&sd=true>
We hope you find this edition informative and valuable. As always, if you have any questions or would like advice tailored to your circumstances, please don’t hesitate to get in touch.
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2026 – 08 – MBS Monthly Update