Startups and testamentary trusts to receive carve outs after criticism of Labor’s CGT changesFollow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastAll of Australia’s 2.7m small businesses will receive “generous” exemptions from capital gains tax, as Anthony Albanese flagged startups and testamentary trusts would be carved out of the government’s contentious tax reforms.The concessions failed to appease business groups and the opposition,
All of Australia’s 2.7m small businesses will receive “generous” exemptions from capital gains tax, as Anthony Albanese flagged startups and testamentary trusts would be carved out of the government’s contentious tax reforms.
The concessions failed to appease business groups and the opposition, who demanded that Labor scrap the reforms altogether, while the Greens warned there was “still a way to go” before they agreed to back the legislation, which is before the Senate.
Small businesses with annual turnover of up to $10m will be eligible for existing CGT exemptions – which include an extra 50% discount – up from the current threshold of $2m.
The founders of “genuinely innovative” startups with very low or zero cost bases, alongside their early investors and employees paid with shares in the business, will be able to stick with the existing 50% flat CGT discount.
Testamentary trusts used to manage the income paid to beneficiaries from a deceased estate will be exempted from the proposed 30% minimum tax rate on discretionary trusts.
bart_ posted a photo:
Chattermag planned to shoot their video in the cellar of an old school on the Waldeck Pyrmontkade in The Hague. The building is called 'De Grote Pyr' and the cellar is used for parties and known as 'Dystopia'. As the building is inhabited by former squatters, it has an anarchistic vibe. I was there shooting behind the scenes with Ilford HP5 and 3200 for that raw punk mood.
I brought my ETC Source Four 750w stage light to play with shadows.
Contax 167MT
Indirect flash
Chattermag planned to shoot their video in the cellar of an old school on the Waldeck Pyrmontkade in The Hague. The building is called 'De Grote Pyr' and the cellar is used for parties and known as 'Dystopia'. As the building is inhabited by former squatters, it has an anarchistic vibe. I was there shooting behind the scenes with Ilford HP5 and 3200 for that raw punk mood.
I brought my ETC Source Four 750w stage light to play with shadows.
Contax 167MT
Indirect flash 1/16th on 1/125
Yashica 50MM f/2 ML
Ilford HP5 Plus 400 [1600]
Do the concessions undermine the original objective of helping young Australians buy their own home? NoFollow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastThe noise, negative headlines and internet memes that have surrounded Labor’s capital gains tax changes since their budget night unveiling made a backdown feel like an inevitability.It wasn’t a question of if concessions would be offered but rather when and, most importantly, how muc
The noise, negative headlines and internet memes that have surrounded Labor’s capital gains tax changes since their budget night unveiling made a backdown feel like an inevitability.
It wasn’t a question of if concessions would be offered but rather when and, most importantly, how much they might undermine the original purpose.
Ahead of ‘same job, same pay’ hearings, former call centre worker Nathan Brunne says pay gap is structural and widens at senior levelsGet our breaking news email, free app or daily news podcastWorkers at the Australian Taxation Office’s outsource call centres are paid up to 40% less than their public service counterparts on the same phone lines, according to submissions lodged ahead of landmark “same job, same pay” hearings.The pay gap, detailed by Nathan Brunne, a former worker on the ATO phone
Workers at the Australian Taxation Office’s outsource call centres are paid up to 40% less than their public service counterparts on the same phone lines, according to submissions lodged ahead of landmark “same job, same pay” hearings.
The pay gap, detailed by Nathan Brunne, a former worker on the ATO phone lines employed by the private equity-backed Probe Operations, widens at more senior call centre roles, with team leaders at outsource operators paid about $31 an hour compared with more than $52 at the tax office.
Promoted Content.Currently, 56% of Americans have no estate plan, creating significant liabilities for small business owners. Even more concerning, among those with end-of-life directives in place, only 18% use a trust to protect their assets. You spend decades building your company, yet ignoring your succession strategy leaves your most valuable asset vulnerable to heavy taxation and legal disputes.The upcoming 2026 tax landscape introduces significant shifts in federal estate tax exemptions. F
Currently, 56% of Americans have no estate plan, creating significant liabilities for small business owners. Even more concerning, among those with end-of-life directives in place, only 18% use a trust to protect their assets. You spend decades building your company, yet ignoring your succession strategy leaves your most valuable asset vulnerable to heavy taxation and legal disputes.
The upcoming 2026 tax landscape introduces significant shifts in federal estate tax exemptions. For entrepreneurs whose net worth remains heavily tied up in illiquid business assets, ignoring these shifts could force your heirs to sell or liquidate the company just to pay the IRS. Fortunately, estate taxes can still be reduced or avoided through strategic tax planning, making proactive measures essential for your business continuity.
This guide provides a plan to navigate the 2026 estate tax changes, protect your business equity, and secure a long-term legacy using advanced trust structures and proactive financial planning. Industry data shows 53% of estate professionals recommend increased gifting to mitigate these incoming changes. Early preparation ensures your life's work transitions smoothly to the next generation without triggering devastating financial consequences.
Simultaneously, the annual gift tax exclusion will stand at $19,000 per individual recipient for the 2026 tax year. You can use this exclusion to transfer wealth or business equity incrementally without consuming your lifetime exemption limit. This provides an excellent opportunity to pass company shares to your heirs tax-free.
These exemptions offer an estimated $5.7 million tax cut to the wealthiest estates at the federal level. However, failing to plan properly can still trigger devastating tax liabilities for business owners whose company valuations push them over the threshold. As experts note, fewer than 1 in 1,000 estates generally pay federal estate tax, but high-growth businesses frequently cross these high valuation lines unprepared.
Protecting Your Life's Work: The Role of Trusts in Business Succession
Why Wills Fall Short for Entrepreneurs
Relying on a standard will forces your business assets through a public, time-consuming legal system. A nationwide survey shows that probate fees average about 2% of an estate's total value. This process drags out the transfer of business ownership, potentially freezing operations and locking heirs out of critical financial accounts.
Conversely, specialized trusts keep your business out of the courts entirely. Surveys reveal that trust administration costs are significantly lower, averaging just 0.5% to 1% of the estate's value. Moving your company shares into a trust ensures immediate, private succession while preserving operating capital for your business.
Structuring Your Legacy: Irrevocable Versus Revocable Trusts
Revocable trusts offer excellent flexibility for business owners who want to bypass the probate process entirely. You retain complete control of your business assets and operations during your lifetime, allowing you to adapt to changing market conditions. However, these structures offer no asset protection from creditors because the assets remain part of your taxable estate.
An irrevocable trust requires relinquishing direct ownership, but it completely removes the business assets from your taxable estate. This represents a crucial strategy if your business valuation exceeds the projected federal exemption limits in 2026. By understanding irrevocable versus revocable trusts, you can see how permanently transferring shares shields your company from lawsuits and creditors. Consulting educational resources from dedicated estate planning firms like Moran Law is vital for understanding which structure aligns perfectly with your business succession goals.
While irrevocable trusts shield assets effectively, you must manage them carefully to avoid secondary financial penalties. The income generated within an irrevocable trust is taxed at the highest 37% rate at an income threshold of just $16,000 in 2026. In addition, trusts are also subject to a 3.8% surtax on investment income once they hit that same $16,000 threshold. This compressed tax bracket requires proactive financial management to ensure the trust does not drain your company's liquid capital.
Strategic Moves to Make Before the 2026 Tax Shift
The changing legislative environment demands immediate action from proactive business owners. A recent industry survey revealed that 86% of trust and estate professionals are actively recommending changes to clients' structures due to shifting federal laws. You must evaluate your holdings now to lock in favorable terms before these new provisions take full effect.
Accelerate Business Gifting: Utilize the $19,000 annual exclusion to strategically gift equity in your family business to heirs tax-free, shifting future appreciation out of your estate.
Review Beneficiary Designations: Ensure your business operating agreements and trust documents align perfectly. Recent legislation, like the SECURE and SECURE 2.0 Act, has significantly changed how inherited retirement accounts are handled, requiring most non-spousal beneficiaries to withdraw all assets within ten years.
Establish a Tax-Efficient Trust: Work with a professional to transition vulnerable, high-growth business assets into an irrevocable trust. Data shows 50% of estate professionals recommend more tax-efficient trust structures to lock in current tax advantages before future legislative reversals occur.
Securing Your Entrepreneurial Legacy
The 2026 estate tax changes offer exemptions but carry hidden traps for illiquid small business owners. As a reminder, more than 55% of Americans currently lack any estate plan, putting their businesses at severe risk. Early planning is the difference between passing down a thriving business and forcing your family to absorb a massive tax burden. Taking action today secures your financial future and protects the company you worked so hard to build.
To ensure your company is fundamentally prepared for long-term growth and succession, review the types of organizational structures available to small businesses. Data shows 40% of advisors specifically recommend establishing irrevocable trusts, which often requires restructuring your corporate entity. Additionally, comparing a traditional business plan versus a lean startup methodology can help you refine your operations before transitioning ownership. Both steps strengthen your overall enterprise value.
Disclaimer: The information provided in this article does not constitute legal, tax, or financial advice. It is for informational purposes only. Please consult with a qualified professional for advice tailored to your specific situation.
Post sponsored by Moran & Associates Attorneys at Law
About the Author
Post by:
Moran and Associates Writing Team
Moran & Associates Attorneys at Law is an estate planning, estate administration, trust planning, trust administration, and wills law firm in Palm Beach, Florida that can assist you with your estate planning needs. Every family’s estate planning situation is unique. We can review your situation, help you find the best solution for your needs, and assist you with the ongoing administration of your trust and estate.
This blog is now closedMedia union blasts Pauline Hanson’s ‘bitter, unprofessional’ attack on Guardian journalistGet our breaking news email, free app or daily news podcastCoalition says it’s good Hanson and One Nation getting the scrutiny of a party on the riseKevin Hogan, the shadow assistant treasurer, says he thinks it’s good Hanson was able to speak at the press club yesterday as One Nation “needs to be put under much more scrutiny” amid surging support.The GetUp stunt completely backfired,
Coalition says it’s good Hanson and One Nation getting the scrutiny of a party on the rise
Kevin Hogan, the shadow assistant treasurer, says he thinks it’s good Hanson was able to speak at the press club yesterday as One Nation “needs to be put under much more scrutiny” amid surging support.
The GetUp stunt completely backfired, it makes them look like [bullies] and makes her look like, you know, a victim in the sense that she’s being picked on. And that never works.
One Nation have tapped into, I think, to some fear and anxieties in the Australian public, and I think we have to acknowledge that. I certainly don’t agree with all the solutions that she puts out there, but look, I think it was healthy that she front up and that she was invited yesterday.
If you’re coming to Australia to have a better life, you become an Australian. That’s what we’re referring to as a monocultured Australia. You’re an Australian first, and your ethnicity or your creed comes second …
The reality is, we’re a Christian Judeo society with a law structure around us, and they’ve come with one clear objective: to have a better life. And that one clear objective should be, if they want to have a better life here, is to live within our culture and live within our laws and rules.
It was direct shooting. It hit the targets. It was clear. It was successful. And it addressed a number of the elephants in the room … So the speech hit the target for where Australians are today.
Sen. Adam Schiff (D-Calif.) late Friday criticized what he called a “corrupt system” that produces extreme wealth at the top while many Americans lack access to health care. "There is something terribly wrong about an economy that produces its first trillionaire, but cannot provide health care for its people," he wrote late Friday on social platform X,...
Sen. Adam Schiff (D-Calif.) late Friday criticized what he called a “corrupt system” that produces extreme wealth at the top while many Americans lack access to health care. "There is something terribly wrong about an economy that produces its first trillionaire, but cannot provide health care for its people," he wrote late Friday on social platform X,...
PUTRAJAYA, June 12 — All new applications for approval under Subsection 44(6) of the Income Tax Act 1967 involving institutions or organisations (IOs) must be submitted through the e-Derma system from June 15, 2026.In a statement today, the Inland Revenue Board of Malaysia (LHDN) said the move is part of its efforts to expand digital service delivery and improve the efficiency of reviewing and approving tax exemption applications.According to LHDN, the e-Derma
PUTRAJAYA, June 12 — All new applications for approval under Subsection 44(6) of the Income Tax Act 1967 involving institutions or organisations (IOs) must be submitted through the e-Derma system from June 15, 2026.
In a statement today, the Inland Revenue Board of Malaysia (LHDN) said the move is part of its efforts to expand digital service delivery and improve the efficiency of reviewing and approving tax exemption applications.
According to LHDN, the e-Derma system allows applications to be submitted online at any time without the need to visit an LHDN office or submit physical documents.
However, new applications under Subsection 44(6) involving funds or Institutions/Organisations/Funds (IOTs) represented by tax representatives or tax agents must continue to be submitted manually together with supporting documents for the time being.
The board said the e-Derma system would be extended to this category in a later phase.
In addition to new applications, the platform also facilitates requests for extensions of approval periods, submission of documents such as Audited Financial Statements and Self-Review Forms, as well as amendments to IOT-related information.
Users can access these services through the LHDN and MyTax portals, with a user manual available to assist with the submission process.
LHDN said the digitalisation of tax-related services is expected to improve service delivery through faster processing and approvals, better document management, and more convenient access for IOTs.
The initiative is also in line with the board’s ongoing efforts to strengthen a more efficient, transparent and customer-friendly digital tax ecosystem. — Bernama
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