Proposed 2026 Tax Changes – Is Your Current Structure Still Appropriate?

The proposed 2026 Federal Budget changes have created significant uncertainty for business owners, investors and family groups.

In particular, the proposed:

• changes to Capital Gains Tax (CGT), and

• new taxation rules for discretionary trust distributions from 1 July 2028

may significantly impact many existing business and investment structures.

For many clients, the current structure that worked well over the last 10–20 years may no longer be the most effective structure going forward.

At Arnold Stevens Finlay, we are currently reviewing client structures to assess:

• exposure to the proposed trust distribution changes,

• future CGT implications,

• whether assets should remain in trusts or companies,

• and whether retained profits inside companies can be accessed more effectively.

One of the biggest issues we are seeing is that many business owners now have substantial cash and retained earnings locked inside companies and bucket companies. While this may have previously been tax effective, accessing these funds personally can often trigger significant additional tax.

For certain clients, strategic restructuring may provide opportunities to:

• improve future tax flexibility,

• simplify structures,

• strengthen asset protection,

• assist with succession planning,

• and potentially unlock company cash for personal and investment use in a more tax-effective manner.

Every client situation is different, and there is no one-size-fits-all solution. However, with the proposed changes expected to commence in future years, now is the appropriate time to review existing structures and consider long-term planning opportunities.

If you would like us to review your structure and discuss the potential impact of the proposed 2026 Budget changes, please contact Alan Tsang or one of our team to arrange a strategic meeting.