In this edition of our newsletter, we would like to highlight one of our team members, Marevil, who supports our advisers through her expertise in administration.
We have also included relevant changes following the budget release, as well as an article in preparation for the end of the financial year, detailing a few important reminders for you and your loved ones.
In addition, we have compiled a range of recent market updates and movements to keep you informed during these periods of uncertainty.
Finally, we conclude with a collection of our recent videos from our social media pages. We encourage you to stay connected with us there for more regularly and timely updates.
Staff Spotlight: Marevil Amarille
This month, we’re pleased to introduce Vil, a valued member of the Avondale Wealth team who has been supporting our clients and advisers for almost two years.
Vil works closely behind the scenes to help ensure a smooth and consistent experience for our clients. She plays an important role in preparing and coordinating the documentation that underpins your ongoing advice, keeping records up to date, and assisting with the preparation of client reviews and correspondence.
She is also involved in supporting client requests and follow-ups, working alongside our advisers to ensure queries are attended to promptly and efficiently. Her attention to detail and commitment to consistency help us maintain the high standard of service you expect from Avondale Wealth.
Outside of work, Vil enjoys participating in community fun runs and charitable events, reflecting her positive and community-minded approach both in and out of the office.
Budget Update
Budget Backdowns: What’s Changed
Since the Federal Budget was released on 12 May, the Government has announced several important adjustments to the proposed capital gains tax (CGT) reforms. These changes are designed to soften the impact on small businesses, innovative start‑ups, and families using testamentary trusts for estate planning.
Below is a clear summary of what has changed and what it may mean for you.
Small Business CGT Concessions
One of the biggest updates is the expansion of access to the existing small business CGT concessions. These concessions help reduce or defer tax when selling business assets.
The Government has now confirmed that:
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Businesses with annual turnover up to $10 million will continue to be eligible for the existing concessions.
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Businesses under $2 million turnover will retain all current concessions without change.
Under the updated model, eligible small businesses will still receive:
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An inflation adjustment to reduce the taxable gain (this adjusts the base cost for inflation), and
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A further 50% reduction on the remaining gain — similar to the current 50% CGT discount.
After these reductions, a minimum 30% tax rate will apply to the final net gain. This minimum rate is part of the broader CGT reform package and remains in place.
Essentially, more small businesses can continue using the familiar CGT rules, and the tax impact of selling a business asset will be lower than originally proposed.
Innovative Start‑ups Protection
The Government has also softened its stance for early‑stage, high‑growth businesses, particularly those where founders and employees are issued shares with very low or zero cost bases.
The updated position allows:
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Founders, early investors, and employees of businesses who meet the innovative business definition to keep using the existing 50% CGT discount.
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These businesses to opt out of the new inflation‑indexation model if it is less favourable.
The Government is still finalising the definition of an “innovative business,” but early guidance suggests it will focus on companies developing new technology or intellectual property, with growth driven by equity rather than upfront capital.
Thus, this reform aims to protect start‑ups where most of the value is created through innovation and early‑stage risk‑taking.
Testamentary Trusts Exemption
Another significant update relates to testamentary trusts, which are commonly used to manage income for beneficiaries after someone passes away.
The Government has confirmed that testamentary trusts will be fully exempt from the proposed 30% minimum tax on discretionary trusts, subject to integrity measures.
For families using testamentary trusts for estate planning, this forward guidance prevents unexpected tax consequences under the new rules.
What These Changes Mean Overall
The Government has clearly responded to concerns raised after the Budget. The updated measures:
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Reduce the impact on small businesses
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Protect innovation and early‑stage investment
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Avoid unintended consequences for estate planning
While the broader CGT reform framework remains, these adjustments significantly soften the original proposals.
Get prepared for June 30
With tax time approaching, this period can be a useful opportunity to pause, review, and consider whether any steps may be worth taking before 30 June. Below are some areas that may be relevant depending on your situation.
Reviewing Your Portfolio
It may be worthwhile to revisit your investment strategy. Markets have been moving frequently, and your comfort level with risk may have shifted as a result. A quick review can help ensure your portfolio still aligns with your goals.
It’s also worthwhile checking your capital gains or losses before 30 June, as this allows you to take action where appropriate. For example, you may consider realising capital losses to offset gains from assets such as shares, property or crypto.
Superannuation Contributions
If you are thinking about adding to your super, it can help to check your contribution levels early. The current caps are:
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$30,000 for concessional (before‑tax) contributions
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$120,000 for non‑concessional (after‑tax) contributions
If you intend to contribute before 30 June, timing matters. Some employers are now paying super earlier under Payday Super, which may affect your available cap. Super funds also have processing cut‑offs, often around 25–26 June.
For SMSF members, it may be worth confirming that:
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Contributions have been received by the fund’s bank account before 30 June
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Minimum pension payments have been made
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Asset valuations are current
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Fund records are up to date
Division 296 Super Tax
A new tax framework, known as Division 296, begins on 1 July 2026. It applies to investment earnings from the 2026–27 financial year onwards.
If your total super balance is above $3 million on 30 June 2027, an additional tax may apply to part of your earnings:
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15% on the portion between $3 million and $10 million
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25% on the portion above $10 million
Timing of Income and Expenses
If you have regular deductible expenses, such as investment loan interest or annual costs, it may be useful for some to prepay them before 30 June to claim a deduction for this financial year.
You may also consider the timing of income expected before 30 June. Deferring income until after the end of the financial year may help reduce your tax liability. However, this depends on your specific situation and broader tax strategy.
Tax rates are also changing for lower income earners. From 1 July 2026, the rate for income between $18,201 and $45,000 will reduce from 16 per cent to 15 per cent, with a further reduction to 14 per cent the following year.
Preparing Your Tax Return
Work‑related deductions
To claim a deduction, the ATO requires that:
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The expense relates directly to earning your income
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You were not reimbursed
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You have records, such as receipts or a logbook
If you work from home, you can use either the fixed‑rate method or the actual‑cost method to calculate your deductions.
Declaring all income
It is also important to remember to declare all income sources, this includes:
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Interest
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Rental income
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Cash payments
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Crypto earnings
We’re Here to Support You
EOFY can be a stressful time, but the Avondale team is here to help. If you’d like to discuss your super contributions, investment strategy, or any of the considerations above, please get in touch with us.
We look forward to supporting you as we close this financial year and prepare for the next.
June Market and Economic Movements
RBA Rate Decision
Recently, short-term measures of inflation expectations have calmed but remain elevated in comparison with previous months. At its latest meeting, the Reserve Bank Board announced it was keeping the cash rate on hold at 4.35 per cent.
In addition, the RBA noted that oil prices have eased in recent weeks, although energy and most related commodity prices remain higher than they were prior to the conflict in the Middle East. Furthermore, there are signs that some firms experiencing cost pressures are increasing the prices of their goods and services and others are looking to do so.
However, the absence of a cash rate rise provides some stability for mortgage holders this month.
US and Iran Conflict
US-Iran negotiations resumed in Switzerland following the interim peace deal.
Last week the US and Iran signed a memorandum of understanding designed to bring a halt to all hostilities and lift the closure of the strait of Hormuz for 60-days. This created a temporary, non-legally binding truce between the two parties.
However, since then military conflict has continued under this interim peace deal and the blockade in the Strait of Hormuz was reinstated.
Significant escalations during US-Iran negotiations have meant that a decision has not yet been reached and it is unclear as to when leadership will meet again.
The practical impact of the strait’s reclosure is yet to be determined, but is being monitored carefully.
Fuel Excise Cut Extension
After disruptions to the fuel supply chain earlier this year, the federal government introduced an excise cut which reduced fuel costs by 32 cents per litre.
This cost of living relief measure was set to expire on 30 June 2026. However, it has been extended from 1st July – 2nd August at a reduced cut of 16 cents per litre.
This extension will help households as they prepare to fully transition away from the excise cut later this year.
June Social Recap
Since our last newsletter, Matt has been sharing timely updates following the federal budget release, keeping our Avondale community informed across our social media channels.
We’ve included a selection of his recent videos below for you to explore.
New CGT Structure
New CGT Structure (pt. 2)
Changes to Negative Gearing
EOFY Deductions You Don’t Want to Miss
If you or a loved one still have questions surrounding your financial future, please don’t hesistate to reach out to our adviser, Chris, using the details below.
🔗 http://calendly.com/chris_mcrae
📞 (02) 7804 2833
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