Explain That is a podcast by Velocity Legal which unravels complex legal concepts and makes them easy to understand. Our host Andrew Henshaw (Managing Director of Velocity Legal) talks to a range of specialists who share their expertise and provide practical guidance.
The Expanded Small Business CGT Concession: Who Benefits and Where the Limits Remain
Does the proposed increase to the turnover threshold really make the small business CGT concessions more accessible?
From 1 July 2027, the aggregated turnover threshold is proposed to increase from $2 million to $10 million for access to the 50% active asset reduction. But the change is narrower than the headline suggests. The higher threshold does not extend to the 15-year exemption, retirement exemption or small business rollover, and the practical benefit may depend heavily on the taxpayer’s ownership structure and how the business is sold.
In this episode of Explain That by Velocity Legal, Andrew Henshaw is joined by Ani Tuna to discuss the proposed expansion of the small business CGT concessions, who is most likely to benefit and why important limitations remain.
The discussion covers:
the existing turnover and maximum net asset value gateways for the small business CGT concessions;
the proposed increase from $2 million to $10 million for access to the active asset reduction;
why the higher turnover threshold applies to only one of the four concessions;
which businesses within the $2 million to $10 million turnover range are most likely to benefit;
the conditions that must still be satisfied, including the active asset test;
why the outcome may differ between an asset sale and a share sale;
why passive shareholders may be unable to rely on the expanded turnover gateway;
the difficulty of extracting sale proceeds from a company after applying the active asset reduction;
unfranked dividends, members’ voluntary liquidations and shareholder-level CGT consequences;
similar extraction issues for unit trusts, including CGT event E4; and
why the transaction structure and ultimate distribution of the proceeds should be considered before a sale proceeds.
A practical discussion for business owners, accountants, tax advisers and private groups considering a business sale, share sale, asset sale or claim under the small business CGT concessions.
For advice on the expanded active asset reduction, small business CGT concession eligibility or the tax structure of a proposed transaction, contact Ani Tuna or Velocity Legal’s Tax team.
24 Sept 2026
30% Minimum Tax on Discretionary Trusts: EETs, Rollover Relief and What Comes Next
The proposed 30% minimum tax on discretionary trusts has moved from a Federal Budget announcement to exposure draft legislation, bringing greater detail—and considerably more complexity.
In this episode of Explain That, Andrew Henshaw is joined by Velocity Legal director Rajan Verma to examine how the proposed regime would operate, how the trustee-level tax and beneficiary credit would interact with the existing trust taxation rules, and why the changes could materially affect the use of discretionary trusts by families and private businesses.
The discussion also explores the proposed Excluded Election Trust regime, or EET. The election may allow an existing discretionary trust to remain outside the minimum tax by nominating beneficiaries and fixing their respective shares of trust income and capital. Rajan explains why that apparent solution may create its own problems, including a loss of flexibility, potentially severe consequences if the nomination is breached, and unresolved questions about trust law and transfer duty.
Andrew and Rajan also consider the proposed restructuring rollover, the potential state duty costs of moving assets or businesses out of a trust, the treatment of franking credits and corporate beneficiaries, and the difficult timing decisions facing trustees and advisers before the proposed commencement date.
The discussion covers:
how discretionary trusts are currently taxed as flow-through vehicles;
how the proposed 30% trustee-level minimum tax and non-refundable beneficiary credit would work;
the potential effect on lower-taxed beneficiaries and corporate beneficiaries;
exclusions for genuine discretionary testamentary trusts and certain classes of income;
the operation and limitations of the proposed EET regime;
rollover relief, transfer duty and the practical costs of restructuring; and
why trustees may need to begin planning before the final policy and political position is known.
The exposure draft was released on 3 September 2026. Treasury describes the proposed regime as applying from 1 July 2028, with a fixed-distribution election and three years of rollover relief from 1 July 2027.
18 Sept 2026
Small-Scale Property Development Part 2: Do You Need to Pay GST?
Do you need to pay GST on a one-off property development?
For small-scale property developments, GST can materially affect the sale proceeds. A one-off project can still attract GST, and treating a sale on capital account for income tax purposes does not necessarily resolve the GST position.
In Part 2 of this two-part series on tax and property development, Andrew Henshaw is joined again by Tom Warrington, Associate in Velocity Legal’s Tax team, to discuss the GST implications and why they need to be considered before signing a contract.
The discussion covers:
when a property sale may be a taxable supply;
what constitutes an enterprise for GST purposes;
why a one-off development can still attract GST;
how the GST analysis differs from the revenue versus capital distinction;
GST withholding obligations and notifying the purchaser;
how the margin scheme may reduce GST payable and the requirement for written agreement;
the distinction between existing and new residential premises;
why a property’s physical characteristics matter when assessing its residential character;
the relevance of rental periods and the five-year rule for new residential premises; and
when changes in use or an input-taxed sale may require adjustments to previously claimed GST credits.
A practical discussion for property owners, small-scale developers, accountants and advisers considering the GST consequences of property development.
Part 1 examines the income tax and CGT implications, including the revenue versus capital distinction, the taxpayer’s intention and the importance of supporting evidence.
For advice on the tax treatment of property developments, contact Tom Warrington or Velocity Legal’s Tax team.
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Tom Warrington
Lauren Gross
Tyson Bateman
Jess Hill
Leo Crnogorcevic
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