After the Budget: Ambition Still Matters

There's a special kind of exhaustion that always hits small business owners after a Federal Budget. Uncertainty, headlines, commentary...panic from people who are trying to work out whether their business structure, investment plans, cash flow, property plans or retirement strategy has just been nudged - or completely rearranged.

Just keep moving...

This year especially, plenty of people are reeling. Start-ups, small business owners, investors and self-employed Australians are looking at the changes and lamenting: Are we making it harder for people who are trying to build something?

Most small business owners aren't living a life of luxury. Most are working long hours, taking personal risk, employing staff, supporting families and trying to create something more stable than a salary ever gave them.

For a lot of ambitious Australians, the frustration is about the feeling that every time you get ahead, the rules change.

Ok, this Budget does include some measures aimed at supporting small business, including the permanent $20k instant asset write-off from 1 July 2026, loss carry-back rules for eligible companies from 2026-27, and loss refundability for new start-ups from 2028-29.

Sitting alongside those measures though, are bigger structural changes that are causing real concern, particularly around negative gearing, capital gains tax and discretionary trusts - a vehicle commonly used by businesses.

The Government has announced that from 1 July 2027, negative gearing benefits for residential property will be limited to new builds, and the 50% CGT discount will be replaced with cost base indexation and a 30% minimum tax rate on capital gains. Existing property held before 7:30pm on 12 May 2026 is expected to be exempt from the negative gearing changes.

So. It's a LOT. For property investors, it might change the numbers. For business owners, it may change the structure. For start-ups, it may change the reward equation.

And for anyone who's taken a risk to build something, it's reasonable to feel a bit miffed.

But...there's no point panicking. Nor is there any point doing nothing.

When governments change rules, people need advice. You need your accountant looking carefully at tax. You may need your solicitor involved where structures and trusts are concerned. And you need your finance strategy reviewed before making assumptions about what banks will or won't do...lending rarely moves in a straight line.

A Budget announcement doesn't automatically mean every lender will respond the same way. Some details need legislation. Some impacts only become clear when lenders update credit policy, servicing calculators and appetite.

Hence, strategy is everything.

For self-employed clients and business owners, this is exactly why your lending shouldn't be built around one year’s tax position, one property decision or one bank calculator. Your structure, cash flow, tax position, security and future plans all need to be looked at as a whole.

Experince with lending is everything here.

Complex lending has never been about pressing a button and hoping the cheapest rate pops up. It's understanding how business income works, knowing which lenders can handle trusts, companies, SMSFs, commercial property, retained earnings, irregular income and changing circumstances.

Knowing that someone can have a strong business and still look chaotic on paper (right now, many business owners feel chaotic).

This doesn't mean they are weak borrowers -the advice around them just needs to be sharper.

There will still be people buying property. There will still be people building businesses.

There will still be people refinancing, restructuring, investing through SMSFs, buying commercial premises, helping adult children, separating from partners, expanding practices and making major financial decisions.

Life doesn't stop because Canberra has dropped a grenade...but the quality of the advice has never mattered more.

The Budget may make you feel that ambition is being punished - I understand that. I work with ambitious people every day, and I have my own small business of course. We are not reckless. We aren't looking for loopholes. We're trying to build security, independence and choice - and not rely on the taxpayer to put a roof over our head - quite the opposite.

People still need a path forward, and this may look different now. Maybe it involves considering commercial or industrial property rather than residential. Reviewing your SMSF strategy. Likely considering whether a restructure is warranted with your refinance.

Or it might just mean waiting until the dust settles before making a major tax-driven decision. Getting the right people at the table is essential.

Australia needs people who want to build, employ, invest and back themselves. And those people need calm, intelligent advice more than ever.

General information only. Please speak with your accountant or tax adviser before making decisions based on Budget announcements or proposed tax changes. For lending strategy, structure and borrowing options, get advice before assuming the answer is no.