Why small business had to fight to be heard on the 2026–27 Budget

Small business is the backbone of the Australian economy. So why did we have to find out about the biggest tax changes in 25 years after they'd already been decided?

That's the question Vanessa has been sitting with since budget night. Not the mechanics of the changes, although there's plenty to work through there. The fact that small business owners, the people these reforms hit hardest, were never in the room when they were written.

We want to walk you through what's actually changed, what the government has since walked back, and why Vanessa has lodged a petition to Parliament. Some of this is good news. Some of it isn't. All of it is something you deserve to understand properly, not in jargon, not after the fact.

What changed, in plain English

The 2026–27 Budget brought in tax reforms we haven't seen since GST was introduced in 2000. Two of them matter most to the business owners we work with.

The 30% minimum tax on discretionary trusts. From 1 July 2028, if your business trades out of a discretionary trust/family trust, the trustee will pay a minimum 30% tax on the trust's taxable income. In practical terms, distributing to family members no longer gives you the benefit of their tax-free thresholds. You pay 30% from the first dollar. If you currently run your business through a trust, this changes the maths on how you're structured.

The CGT discount is gone for property investors. The flat 50% capital gains tax discount is being replaced from 1 July 2027 with a discount based on inflation, plus a 30% minimum tax on gains. The changes only apply to gains made after that date, and they're prospective, so the value you've already built keeps the old rules. But if you're an investor who buys an established property after budget night and later sells it, you're in the affected group. New builds keep the old discount. Established dwellings don't.

There's more in the Budget worth knowing about, including loss carry-back returning for businesses, a permanent $20,000 instant asset write-off, and changes to electric vehicle FBT. If any of those touch your situation, talk to us and we'll explain how. But the trust and CGT changes are the ones with the deepest reach into how small businesses are built and sold.

The government changed its position. Here's what that's worth.

After weeks of pressure, the government announced a partial back-flip. There are some genuine wins in it, and we'll name them clearly because they're real.

Testamentary trusts are now exempt from the minimum tax. This was the one that should never have been on the table. When you die and your money goes into a testamentary trust to support your family, that money has already been taxed. Taxing it again, to fund the people mourning you, was indefensible. The government has confirmed all testamentary trusts are exempt, including future ones. Good.

The small business CGT concession threshold has been lifted from $2 million to $10 million in turnover. This widens the 50% active asset reduction so more businesses qualify when they sell. On paper, that captures a lot more owners.

So those are the wins. Now the part that matters.

The structural changes stayed. The 30% minimum tax on discretionary trusts is still coming in 2028. The CGT discount is still gone for property investors. Lifting the small business concession threshold sounds generous until you remember how many small businesses actually reach the point of selling. It's a smaller number than you'd think. The concessions were softened at the edges while the core of the reform was left exactly as it was.

Vanessa's read on this is direct: it's smoke and mirrors. Give small businesses something to feel good about, quiet the room, and continue with the changes that were always the plan.

The real problem isn't the tax. It's that nobody asked.

Here's what frustrates Vanessa most, and it's worth saying plainly.

When the government announced these changes, they told the Australian public the reforms were fair and reasonable. They weren't. When the backbone of the economy is small business, and small business owners across the country are saying a change is unfair, the obvious question is: who is the government actually listening to?

Small businesses weren't consulted. They were told. The changes were made first and explained after, and the only reason any of them moved is that people refused to stay quiet. Janine Allis, founder of Boost Juice, spoke out on 60 Minutes. Well-known names across Australia put their weight behind the pushback. It took that level of noise to get a partial change of heart on something the government had already called fair.

That's backwards. Small business owners are already carrying enough. They shouldn't have to spend the time and energy they don't have fighting to be heard on decisions that affect their livelihoods. They should have been consulted before any of this was put in place.

What the petition is for

This is why Vanessa lodged a petition to the House of Representatives. It's now passed 3,199 signatures.

The petition isn't only asking Parliament to reject the CGT and discretionary trust changes. It's asking for something more basic: genuine consultation with small businesses, tax agents, accountants and professional associations before any legislative action proceeds. The point isn't just to change one policy. It's to change the pattern of small business being an afterthought.

If you run a business in this country, this affects you, whether you trade through a trust or not. The principle is the same either way: the people who keep the economy running deserve a seat at the table before the rules get rewritten.

Sign the petition (EN10049)

Where this leaves you

If you run your business through a trust, or you hold investment property, or you're thinking about selling in the next few years, these changes likely touch you, and the rollover relief window for restructuring is open for three years from 1 July 2027. That's means getting ready to plan not to start panicing about yet but it's not as long as it sounds once you account for valuations and approvals.

Don't make any moves on your structure off the back of a blog post, we are still waiting for this to pass legsilation. Talk to us first. We'll look at your specific situation and tell you plainly what, if anything, you need to do, and when.

You're not behind on this. Nobody could have planned for changes they were never consulted on. That's the whole point.

Your VBA Team