Spring 2026 Tax Update
Spring 2026 Tax Update: What You Need to Know This Season
Desborough Accountants | October 2026 | 5 min read
Key Points
- The CGT and negative gearing changes are now law and start on 1 July 2027. The 30% minimum tax on discretionary trusts is still in draft.
- Since 1 October 2026, businesses can no longer add a surcharge to eftpos, Mastercard or Visa card payments.
- The ATO will stop accepting credit card payments after 30 November 2026.
- Lodging your own tax return? It is due 31 October. Want us to lodge it? You need to be on our client list before then to access the extended due dates.
- The free ATO app is the easiest way to keep your tax records in one place during the year.
- New service: we now offer Strategic Business Advisory. Try our free 5 minute business assessment to get started.
Welcome to spring! The days are getting longer, the footy finals are behind us, and we are now well into the 2026/27 financial year. It has been a busy few months in the tax world, so here is a quick round-up of what has changed, what is coming, and a few deadlines to keep in mind before the end of the year.
Tax reform update
The big tax reforms announced in the May Budget have been moving through Parliament. If you missed our full summary at the time, you can find it here: 2026/27 Federal Budget: Tax Summary. Here is where things stand now.
Capital gains tax and negative gearing: now law
The legislation passed Parliament in late June and received Royal Assent on 26 June 2026. The changes start from 1 July 2027. In summary:
- CGT: for individuals, trusts and partnerships, the 50% CGT discount is being replaced with cost base indexation and a 30% minimum tax rate on capital gains that accrue from 1 July 2027. Growth before that date keeps the current treatment.
- Negative gearing: for established residential properties purchased after Budget night (12 May 2026), rental losses will be quarantined from 1 July 2027 and can only be used against residential property income and gains. Properties already held on Budget night are grandfathered, and new builds are not affected.
- Still being finalised: a second round of legislation is in progress, covering details such as the definition of a “new residential dwelling”, some housing exemptions, and how the rules apply when property passes on death or under a family law order.
Discretionary trusts: still a work in progress
The proposed 30% minimum tax on discretionary (family) trusts is due to start on 1 July 2028, but it is not law yet. Treasury released draft legislation on 3 September 2026 and public consultation closed on 18 September. The draft includes a few welcome changes, including a new election that may allow some existing trusts to sit outside the minimum tax without a full restructure, alongside the previously announced rollover relief window.
The detail is still changing, so we are not recommending anyone rush into a restructure. If you have a family trust, we will be in touch with you directly once the rules are settled, to work through your options together.
Card surcharges are gone: what it means for your business
From 1 October 2026, businesses can no longer add a surcharge to payments made with eftpos, Mastercard or Visa cards. This covers debit, credit and prepaid cards, whether in store, online or over the phone. Other card networks have also indicated they are removing surcharging.
What has not changed is that your bank or payment provider will still charge you merchant fees for accepting card payments. If you were previously passing that cost on to customers through a surcharge, you will now need to absorb it or build it into your pricing.
What to do now:
- Check that surcharging is switched off everywhere, not just on your EFTPOS terminal. Point of sale systems, online checkouts, booking platforms and invoicing software may need to be updated manually.
- Work out what your card fees actually cost you each month and factor that into your price setting.
- Shop around. The Reserve Bank has also lowered the caps on some of the underlying fees that make up merchant charges, so this is a good time to compare EFTPOS and payment providers. There may be a better deal out there than the one you signed up for years ago.
The ATO will stop taking credit cards
Following the surcharge changes, the ATO has announced it will stop accepting credit cards as a payment method after 30 November 2026. Its reasoning is that, as a government agency, it does not want the cost of credit card merchant fees to be passed on to the community.
If you have an ATO payment plan linked to a credit card, you will need to change to another payment method before your next instalment due after 30 November. If you do not, the payment will fail and your plan could fall into arrears or default. The ATO is writing directly to taxpayers in this situation.
Other payment options, such as BPAY and bank transfer, remain available. You can find them all at ato.gov.au/howtopay.
Tax return deadline: 31 October
If you lodge your own individual tax return, the 2025/26 return is due by 31 October 2026.
If you use a registered tax agent, you can generally access a later due date under the ATO’s lodgment program, often as late as 15 May 2027 depending on your circumstances. The catch is that you must be added to your agent’s client list by 31 October to qualify. Signing up after that date does not bring the extension back.
Important this year: 31 October 2026 falls on a Saturday, and the ATO does not allow agents to add new clients on the next business day. If you would like us to add you to our lodgment program, please contact us by Friday 30 October at the latest. Earlier is better.
Also note that if you have tax returns from earlier years still outstanding, your 2026 return is generally due on 31 October, even if you use an agent, unless those overdue returns are lodged by then.
Make tax time easier with the ATO app
The free ATO app has been updated, and it is well worth having on your phone. Some of the handiest features include:
- myDeductions: record work-related expenses, gifts and donations as you go, snap a photo of each receipt, and log work car trips. Sole traders can record business income as well.
- Share with us at tax time: email your myDeductions records straight to us, or upload them to the ATO so they are ready to pre-fill your return.
- Track your tax return: follow your return from lodgment through to its outcome, and see upcoming lodgment and payment due dates.
- Keep an eye on your super: check your super details on the go.
- Security tools: verify whether a phone call is really from the ATO, receive alerts when important changes are made to your ATO record, and lock your record if you spot suspicious activity.
The ATO has some short videos showing how it all works. Take a look at ato.gov.au/app and ato.gov.au/mydeductions.
Why we like it: recording things during the year means no more hunting through drawers and inboxes in July. At tax time you simply send us your summary, and we can get your return done faster. One tip: myDeductions records are stored on your phone, so use the backup feature regularly in case your device is lost or replaced.
New: Strategic Business Advisory Services
Clarity. Strategy. Growth.
We are excited to introduce a new service for our business clients. Most business owners are brilliant at what they do, but it is easy to get so caught up in the day-to-day that the bigger questions get pushed aside. Where is the business actually heading? What is holding it back? What would it look like if it were running really well?
Our Strategic Business Advisory service gives you the chance to step back and think clearly about your business, with expert guidance alongside you. It is not generic consulting. It is a focused, practical process built around your situation, and delivered by people who already know and understand your business.
This service is ideal if you:
- Feel like your business has plateaued and are not sure what to do next
- Are working hard but not seeing the results you expected
- Want to grow but are not sure how to structure that growth
- Are ready to invest some time in building a clearer, stronger business
The process starts with a short discovery questionnaire, followed by a two-hour deep-dive strategy session (in person or online) with one of our accountants. You then receive a written summary and a personalised action plan with clear next steps, covering areas such as leadership, team, systems, marketing, sales and profitability.
Try our free business assessment
Curious where your business stands? Our free online assessment takes less than 5 minutes and gives you a personalised report covering key areas such as strategy, leadership and operations. It is a great taster of what the full program offers.
If you would like to book a strategy session with one of our accountants, or simply want to find out more, please get in touch. You can also read more on our Services page.
Also on our radar
- $1,000 instant deduction: from your 2026/27 tax return, workers can claim a $1,000 standard deduction for work-related expenses without receipts. If you expect your actual expenses to be higher, you will still need records to claim them, which is another reason to start using myDeductions now.
- Electric vehicle novated leases: the Government plans to phase back the FBT exemption for EVs. If you are considering a new EV novated lease, the window to lock in the full exemption on more expensive EVs closes on 31 March 2027. Talk to us before you sign.
- Anti-money laundering rules: since 1 July 2026, accountants providing certain services (such as setting up companies and trusts) must verify client identity under new AUSTRAC rules. If we ask you for identification for this kind of work, that is why. Routine tax work is generally not affected.
- Payday Super: a reminder that super guarantee must now be received by your employees’ funds within 7 business days of each payday. If you need a refresher, see our article Payday Super Is Here!
Key dates for the rest of 2026
| Date | What is due |
|---|---|
| 28 October | September quarter activity statement, if you lodge it yourself |
| 30 October | Last business day to contact us to be added to our lodgment program |
| 31 October | 2025/26 individual tax returns due for self-lodgers |
| 25 November | September quarter activity statement, if lodged electronically through us |
| 30 November | Last day the ATO will accept credit card payments |
We are here to help
Whether you need your tax return done, want to talk through how the CGT or trust changes affect you, want a second opinion on your new pricing now that surcharges are gone, or are ready to take a fresh look at where your business is heading, we are happy to help. Get in touch and we will talk it through with you.
This article contains general information only and does not constitute tax or financial advice. Your circumstances will affect how these rules apply to you. Please contact Desborough Accountants before making any decisions. The discretionary trust measures are draft legislation only and may change. References: Australian Taxation Office (ato.gov.au), Reserve Bank of Australia (rba.gov.au) and Treasury (treasury.gov.au), current as at October 2026.
