Accountstream Tax & Business Advisors

Division 296 tax is now in effect from 1 July 2026 — and SMSF members with large super balances should start planning now.

The new rules reduce superannuation tax concessions for individuals with higher Total Superannuation Balances (TSB).

Key points include:

• $3 million LSBT — an additional 15% tax may apply to the relevant proportion of taxable superannuation earnings attributable to balances above this threshold.
• $10 million VLSBT — a further 10% tax may apply to the relevant proportion attributable to balances above $10 million.
• Division 296 is assessed to the individual member, based on their TSB across all superannuation interests — not simply the total value of the SMSF.
• The legislated rules broadly apply to realised earnings rather than unrealised capital gains.
• For the first year, 2026–27, the relevant TSB test is based on the member's balance at 30 June 2027.
• SMSFs may also have access to an important transitional CGT cost-base adjustment election for assets held at 30 June 2026.

Division 296 Tax from 1 July 2026 – What SMSF Members Need to Know - Accountstream Tax and Business Advisors The new Division 296 tax applies from the 2026–27 income year and reduces the concessional tax treatment of superannuation earnings for individuals with large total superannuation balances. Division 296 applies to the individual member, rather than to the SMSF as a whole. Accordingly, each member....

The ATO has released its Decision Impact Statement following the High Court’s decision in Commissioner of Taxation v Bendel [2026] HCA 18.

The key point is that where a private company beneficiary simply leaves an unpaid present entitlement (UPE) outstanding and does nothing further, the ATO will not treat that inaction alone as the company making a loan to the trust under section 109D.

However, this is not a blanket exemption for all UPEs.

The legal form of each arrangement remains important. Division 7A may still apply where a UPE is converted, satisfied, replaced, or otherwise dealt with in a way that creates a loan or financial accommodation.

Private groups should review:

• trust distribution resolutions
• corporate beneficiary UPE balances
• trust deed provisions
• accounting and beneficiary ledgers
• existing Division 7A loan agreements
• prior-year positions and amendment opportunities

Existing complying Division 7A loans should not be automatically unwound, as they may represent separate legal arrangements with ongoing obligations.

We can review your current or historical UPE arrangements and advise how the Bendel decision may affect your Division 7A position.

Contact our office to discuss your circumstances.



General information only. Professional advice should be obtained before changing an existing arrangement.

ATO Updates Its Position on Bendel and Division 7A UPE Arrangements - Accountstream Tax and Business Advisors The ATO has released its Decision Impact Statement following the High Court’s decision in Commissioner of Taxation v Bendel. The decision is relevant to private groups that use discretionary trusts and private companies as beneficiaries, particularly where trust income has been distributed to a co...

From 1 July 2026, thousands more businesses—including accounting and professional services firms—are now regulated under Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws.

What the new anti-money laundering and counter-terrorism financing rules mean for our services - Accountstream Tax and Business Advisors

Major tax changes are now law.

The Treasury Laws Amendment (Tax Reform No 1) Act 2026 has received assent, introducing significant changes for property investors, SMSFs, workers and small business owners.

Key changes include:

✅ From 1 July 2027, the 50% CGT discount will be replaced with cost base indexation
✅ A 30% minimum tax on capital gains will apply
✅ Negative gearing for residential property will generally be restricted to new builds
✅ SMSFs will no longer be able to use new LRBAs to acquire residential property
✅ The small business CGT active asset concession threshold will increase from $2 million to $10 million
✅ A $1,000 standard deduction for work-related expenses will apply from the 2026–27 year

The SMSF LRBA change is particularly urgent. The restriction starts on the 45th day after assent. Existing arrangements and certain refinances are expected to be protected.

If you are considering buying property, selling assets, restructuring a trust or borrowing through an SMSF, now is the time to review your position.

Contact Accountstream Tax & Business Advisors for tailored tax advice.

Major Tax Reform Now Law: CGT, Negative Gearing and SMSF Borrowing Changes - Accountstream Tax and Business Advisors The Treasury Laws Amendment (Tax Reform No 1) Act 2026 has now received assent, bringing into law some of the most significant tax changes for property investors, SMSF trustees, individuals and small business owners in recent years. These changes affect capital gains tax, negative gearing, SMSF limi...

From 1/7/27 the 50% CGT discount will be replaced by cost base indexation for assets held for more than 12 months, with a 30% minimum tax to apply on net capital gains.

Assets acquired pre 20 September 1985, currently exempt from CGT, are also affected.

Federal Budget 2026-27 Spotlight - Capital Gains Tax Reform - Accountstream Tax and Business Advisors From 1/7/27 the 50% CGT discount will be replaced by cost base indexation for assets held for more than 12 months, with a 30% minimum tax to apply on net capital gains. Assets acquired pre 20 September 1985, currently exempt from CGT, are also affected.

2026-27 Federal Budget was ambitious, announcing significant reforms to capital gains tax and negative gearing in a bid to support home ownership and improve the fairness of the tax system.

Federal Budget 2026-27: Key Announcements - Accountstream Tax and Business Advisors

The 2025-26 fringe benefits tax year ended on 31 March. As employers gear up for FBT tax time, there are a few changes for 2025-26 that employers should be aware of, especially if you provide plug-in hybrid electric vehicles (PHEVs) to your employees.

FBT tax time 2025-26 – are you ready? - Accountstream Tax and Business Advisors