19/05/2026
*Federal Budget Changes: Immediate Considerations*
Last week's Federal budget included proposed changes that may have a significant effect on various types of interests. In particular, the proposed changes to capital gains tax (CGT), company and trust taxation, and limitations on negative gearing may alter the financial assumptions underlying some interests.
The changes may affect, for example:
- existing finance approvals or pre‑approvals, including a lender’s willingness to advance funds
- proposed family law settlements
- succession planning arrangements
- transactions that rely on current taxation settings
- transactions involving the valuation of assets
Practitioners should consider whether these changes affect any existing clients or current matters.
Where relevant, practitioners should consider recommending that affected clients obtain updated financial and tax advice. This may assist in managing the practice's exposure in relation to that advice.
Lexon has seen claims arise where external events change a client’s position, and the client later alleges that their lawyer failed to prompt a review or recommend appropriate specialist advice. Loss may occur where a client proceeds without appreciating the effect of the change or does not act in sufficient time to manage its consequences.
Practitioners should consider now whether to proactively contact clients who may be affected by the proposed changes and recommend prompt engagement with their financial advisers, tax advisers and financiers.
