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The Government are making significant changes to Self Managed Super Funds.

Read the below article from Grow SMSF to understand what the changes are and how these may affect you.

If you would like to arrange a consultation to discuss the impact of this on your specific circumstances, please reach out to us on better@finwellgroup.com.au or via our website.

SMSF Borrowing Banned: What the Labor-Greens LRBA Deal Means for You

The government has struck a deal with the Greens — and if you’ve been planning to buy residential property inside your SMSF using a limited recourse borrowing arrangement (LRBA), the clock is now ticking.

Yesterday, 23 June 2026, Prime Minister Anthony Albanese and Treasurer Jim Chalmers confirmed they have agreed to an amendment that will ban SMSFs from entering new LRBAs to acquire residential property.

The change is the price the Greens extracted for their Senate support of the government’s broader Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 — the legislation that overhauls the CGT discount and negative gearing rules.

This is breaking news. Here is everything we know right now, and what it means for you.

What Exactly Has Been Agreed

The government’s official statement confirms:

“The Government has agreed to support an amendment that will be moved by the Greens to ban future limited recourse borrowing arrangements (LRBAs) for residential property by superannuation funds.”

Treasurer Chalmers told reporters in Canberra:

“We will ban these arrangements for residential property going forward, but we will leave the existing arrangements in place for those existing investments, and also have a 45-day transition period for any investments which are currently midstream.”

At Finwell Group, we want you to have control of your financial future, and our team is ready to help you achieve that.

Give us a call on (03) 9017 3235 or email better@finwellgroup.com.au.

General Advice statement

The information in this article is general in nature and does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions.

The Federal Budget handed down on Tuesday 12 May 2026 has been framed by the Government as a reform package for workers, first home buyers, businesses and future generations.

Treasurer Jim Chalmers described it as a “responsible” and “reforming” Budget, with tax reform, cost-of-living support and housing affordability among its central themes. (Budget Australia)

But beneath the headline measures sits a more uncomfortable reality: many of the changes land hardest on middle Australia — PAYG income earners trying to build wealth, small business owners using long-standing family structures, property investors, and retirees relying on capital preservation and investment income.

This is not a Budget that simply “taxes the rich”. It is a Budget that reshapes the rules for ordinary Australians who have used property, trusts, companies, superannuation and long-term investing to get ahead.

The four groups most likely to feel the consequences are PAYG Accumulators, Small Business Owners, Property Investors and Retirees.

PAYG ACCUMULATORS: SMALL TAX RELIEF, BIGGER INVESTMENT HEADWINDS

For employees and salary earners, the Budget offers some immediate and visible benefits.

The Government has confirmed additional personal tax support, including a $1,000 instant tax deduction from the 2026–27 year and a $250 Working Australians Tax Offset from 2027–28. The second marginal tax rate is also scheduled to fall from 16% to 15% from 1 July 2026, and then to 14% from 1 July 2027. (AusTaxTools)

On the surface, that sounds positive. For many PAYG workers, it will be. But the concern is what happens beyond the payslip.

PAYG accumulators — people working hard, saving surplus income, investing outside super, buying ETFs, shares or property — are also caught by changes to capital gains tax and investment deductibility. From 1 July 2027, the 50% CGT discount is being replaced by a cost-base indexation model, with a minimum 30% tax on capital gains. (AusTaxTools)

That matters because PAYG workers already have limited tax-planning flexibility. They earn income, tax is withheld, and their ability to build long-term wealth often depends on disciplined investing after tax.

The Budget gives with one hand through modest income tax relief, but potentially takes with the other by reducing the after-tax reward for long-term investment.

For PAYG accumulators, the question is no longer just: “How much tax do I save this year?”

It becomes: “What is the most effective structure for building wealth over the next 10, 20 or 30 years?”

SMALL BUSINESS OWNERS: THE FAMILY TRUST MODEL IS UNDER PRESSURE

For small business owners, the most significant change may be the proposed 30% minimum tax on discretionary trust income from 1 July 2028.

The Budget materials and tax commentary indicate that fixed trusts, widely held trusts, superannuation funds, special disability trusts, deceased estates and charitable trusts are expected to be excluded, but discretionary family trust arrangements are squarely in focus. (AusTaxTools)

This is a major issue because many Australian small businesses operate through family trusts.

For decades, family trusts have been used not simply as a tax tool, but as a practical structure for asset protection, succession planning, family risk management and household income management. For many small business families, the business is not a passive investment. It is the household engine. It funds wages, school fees, mortgages, super contributions, insurance, reinvestment and retirement plans.
A 30% minimum tax on discretionary trust income may change the equation.

One likely consequence is that more business owners will review whether their current structure still makes sense. Some may consider moving towards company structures, formal employment arrangements, director salaries, PAYG withholding and larger superannuation contributions.

That may bring forward tax collection for the Government. It may also capture more compulsory superannuation contributions. But it could also reduce cash-flow flexibility for business owners already dealing with wage pressure, higher borrowing costs, compliance costs and softer consumer demand.

The Budget also includes a permanent $20,000 instant asset write-off from 1 July 2026, which is helpful for eligible small businesses. (AusTaxTools)

But that benefit is unlikely to offset the broader structural impact for business owners who rely on discretionary trusts as part of their long-term planning.

The message for small business owners is clear: structure review is no longer optional. It is now a priority.

PROPERTY INVESTORS: NEGATIVE GEARING CHANGES ARE ONLY PART OF THE STORY

The Budget’s property measures have received the most attention, particularly the changes to negative gearing.

From 1 July 2027, negative gearing will be limited for established residential property. Existing arrangements are expected to be grandfathered for properties held before Budget night, while new builds retain more favourable treatment.

Investors who buy established homes after Budget night will still be able to deduct losses against residential property income and carry forward unused losses, but they will not be able to deduct those losses against other income such as wages. (Money Management)

In practical terms, that is a major change for investors who have historically used rental losses to offset PAYG income. However, the bigger long-term issue may be capital gains tax.

The 50% CGT discount has been central to the property investment equation since 1999. Under the Budget changes, it will be replaced from 1 July 2027 by cost-base indexation, with a minimum 30% tax on gains. The reforms are expected to apply to gains arising after that date, with special treatment for existing assets and new builds. (Money Management)

The Government argues these changes will improve housing affordability and support an additional 75,000 homeowners over the decade. (Budget Australia)

The concern is whether the policy also reduces private investor appetite at the lower end of the rental market.

Negative gearing was originally tolerated because private investors helped provide rental housing supply. If fewer investors are willing to provide that housing — especially established rental housing — the burden shifts back toward government, institutional housing providers and new-build incentives.
That may be the intended direction of policy. But it is not risk-free.

For property investors, the key issue is not panic. It is modelling. Existing holdings, debt levels, rental yields, future tax treatment, ownership structures and exit timing all need to be reviewed carefully.

Some investors will still find property attractive. Others may decide the risk-return trade-off has changed.

RETIREES: CAPITAL GAINS, INCOME AND CERTAINTY MATTER

Retirees are not always the headline target in Budgets like this, but they can still be materially affected.

Many retirees hold long-term assets outside superannuation, including shares, managed funds, investment properties and family trust interests. Changes to CGT rules may therefore influence how and when they sell assets, fund retirement income, support children, downsize or manage estate planning.

The shift away from the 50% CGT discount towards cost-base indexation may benefit some investors in high-inflation environments, because only real gains above inflation are taxed. But for many long-term investors, particularly those with strong nominal gains, the outcome may be less favourable than the current 50% discount. The introduction of a 30% minimum tax on gains also reduces the ability to manage CGT outcomes by timing asset sales in lower-income years. (The Guardian)

For retirees, that matters.

Retirement planning depends heavily on certainty. People need to know what their assets are worth after tax, how much income they can safely draw, and whether selling an asset will trigger an avoidable tax shock.

The Budget also includes increased aged care and health funding, including public hospital and aged care commitments. (Budget Australia)

These are important, but they do not remove the need for retirees to reassess their personal tax, estate and income strategies in light of the investment tax changes.

For retirees, the priority is to review asset ownership, unrealised gains, pension phase superannuation strategies, family trust exposure and estate planning before the new rules take effect.

THE BIGGER PICTURE: THIS IS A STRUCTURAL RESET

The Budget is being presented as a fairness package.

In reality, it is a structural reset of how Australia taxes work, investment, property and family wealth.
The most affected Australians may not be the ultra-wealthy. They may be the people in the middle: employees trying to invest, small business owners carrying risk, property investors supplying rental housing, and retirees trying to preserve capital.

The key risk is that these changes alter behaviour.

Small business owners may move away from trusts. Investors may redirect capital away from established housing. PAYG accumulators may need to rethink whether property, shares, super or company structures are the best path forward. Retirees may need to reassess the tax cost of selling long-held assets.

The Budget’s headline story is reform. The practical story is that the rules of wealth accumulation are changing.

For households, business owners and investors, this is the time to review before reacting. Tax settings, ownership structures, investment strategy, debt levels, superannuation contributions and estate planning should now be looked at together — not in isolation.

The Budget may have been handed down in one night, but its consequences will play out over many years.

At Finwell Group, we want you to have control of your financial future, and our team is ready to help you achieve that.

Give us a call on (03) 9017 3235 or email better@finwellgroup.com.au.

General Advice statement

For some time, it has been understood that only a small percentage of Australians seek out professional help with their financial planning and wealth creation.

However, it now seems that this truth is being turned on its head with a growing number of Aussies open to seeking help from a financial adviser as we move into 2026.

A financial standard investment trends report found that 11.8 million Australians have “unmet financial advice needs.”

None more so than millennials and Gen Z, with Colonial First State reporting that 53% of Australians aged 16–39 are open to getting financial advice, which points to a growing interest among younger people.

Demand for advice is clearly rising. With the significant volume of information out there, individuals now see advisers as a stable source of trusted guidance in an increasingly uncertain world. They report wanting help with mapping out long-term goals, retirement plans, and even investing that focuses on strong values of sustainability, climate change or other pressing social issues.

At the same time, clients are demanding holistic advice that impacts every part of their financial situation. This often means advisers need to have partnerships with experts in areas such as mortgage, SMSF and property investment.

Investors want innovation, but not at the expense of human judgment.

Many expect advisers to embrace AI for various parts of the client service model— but they also want human connection to be kept intact for critical elements like planning meetings and events.

Through it all, one thing stands out: lasting relationships matter.

A recent survey shows that many Australians are less likely to switch planners than people in other countries; trust is still being built, and people value continuity over churn. Advice isn’t just a transaction — it’s a long-game relationship.

At Finwell Group, we focus on the long term. We aim to not just help clients set their desired outcomes and key actions but also walk the journey alongside them all the way to the achievement of their goals.

As a family-owned business with many team members being investors just like our clients, our reputation is about the care we take in providing clear advice and friendly helpful service.

You can book a free and no-obligation review meeting to discuss your needs and to see how Finwell Group can help you. Call us on (03) 9017 3235 or email info@finwellgroup.com.au

As the new year approaches, you may start to think about your 2026 goals such as your health, career, and travel.

However, the best way to impact all these areas and more is to set goals around your money. Getting your money in good shape as you enter 2026 will set you on the road to a positive financial future.

Here are 5 tips from the team at Finwell Group to be prepared for the next year ahead:

1.Review Your Spending and Budget

Start by taking a close look at where your money went this year. Go through your bank and credit card statements and group your spending into categories — essentials, lifestyle, and discretionary. Once you see where your money’s going, set a realistic budget that includes some savings each month.

2. Tackle Debt Early

Interest rates may have stabilised, but debt still eats into your future wealth. Make it a priority to pay off high-interest credit cards or personal loans. Consider consolidating smaller debts into one lower-interest loan if it helps you stay on top of repayments.

3. Build (or Rebuild) an Emergency Fund

A good rule of thumb to follow is to have three to six months’ worth of living expenses in a reserve that you can’t access easily. This safety net can help you cope with unexpected costs like medical bills, car repairs, or job changes without relying on credit. If you’ve had to use your emergency fund recently, make a plan to rebuild it this year.

4. Review Your Super and Investments

Your superannuation is likely one of your biggest assets, yet many Australians rarely check how their Super has performed. Review your super balance, fees, and investment mix. Make sure it aligns with your risk tolerance and retirement goals. For investors, the start of a new year is a great time to rebalance portfolios and take advantage of tax-effective investment opportunities. This could include asking the question of your financial advisor if an SMSF is right for you. See our recent article on this topic (READ ARTICLE)

5. Set Financial Goals — and Get Professional Advice

Clear goals help turn intentions into action. Whether it is saving for a home, paying down a mortgage faster, or planning for retirement, writing down your goals makes them real. Research shows a clear message. Getting advice can put you in a better position than someone who hasn’t engaged a professional.

Here are some powerful statistics on the value of advice from the FAAA (Financial Advice Association Australia) Value of Advice Index (2024).

- Approximately 9 in 10 advised Australians say that the benefits of advice outweigh the costs.
- Over 80% of those who use a financial adviser are less worried about money since receiving advice.
- Advised clients score significantly higher on financial confidence, satisfaction and quality of life measures, compared to those without an adviser.

If you’re unsure where to start or want to be sure your money is working hard for you, now might be the right time to speak with one of the Finwell Group team.

Finwell Group’s professional advisors can help you map out a personalised strategy, maximise tax benefits, protect your assets, and stay accountable throughout the year.