What Australian Tax Reform in 2025 Could Mean for Small and Family Businesses
- Future Accounting
- Jul 24
- 2 min read
Updated: Aug 12
Why business owners should pay attention to Australian Tax Reform
As conversations about Australian Tax Reform heat up, the implications for small and family-run businesses are becoming harder to ignore. While no laws have passed yet, reforms under discussion could influence how you price, structure, sell, or pass on your business in the years ahead.
From GST changes to a potential return of inheritance tax, the government is clearly eyeing new ways to raise revenue—particularly from capital, assets, and estates, not just income. Business owners who stay proactive will be better positioned to adapt, while those caught off guard may face costly surprises.
Here’s what’s being talked about—and what you can do to stay ahead.
GST reform – broader base, same rate?
Although the GST rate is unlikely to rise, there’s increasing pressure to remove exemptions on essentials like food, healthcare, and education.
Why this matters:
New compliance requirements may affect small service providers and retailers.
Household spending could drop in key sectors if the cost of living rises.
Businesses may feel pressure on cash flow and admin as rules shift.
Tip: Make sure your invoicing and point-of-sale systems are flexible enough to adapt to changes.
Capital Gains Tax – discount under threat
CGT reform is squarely on the table. The government is reviewing key elements including the 50% CGT discount, small business concessions, and rollover reliefs—which are critical for business exits and succession.
Why this matters:
Selling your business could net you less if CGT discounts are cut.
Trusts and SMSFs may lose some of their current efficiency.
Key planning tools, like the 15-year or retirement exemptions, could be narrowed.
Tip: If you're planning to sell or hand over your business within 5 years, get a CGT check-up now.
Inheritance tax – could death duties return?
While Australia hasn’t had death duties since the 1980s, there is renewed talk of reintroducing inheritance tax, taxing superannuation death benefits more heavily, or removing the CGT step-up on death.
Why this matters:
Family farms and businesses could face large, unexpected tax bills.
You might need to sell assets just to cover liabilities.
SMSFs used for intergenerational wealth transfer could face new restrictions.
Tip: Review your estate plan. Future tax liabilities should be modelled and accounted for.
ATO scrutiny is increasing
Regardless of whether new legislation is passed, the ATO has already been given more power to audit and enforce existing rules.
Why this matters:
Super payments, GST, and deductions are under tighter review.
Poor record-keeping could invite audits and penalties.
Trust and SMSF arrangements should be reviewed annually for compliance.
Tip: Stay ahead with up-to-date records and an annual structure review with your advisor.
Tax reform is coming—are you ready?
The proposals may not be law yet, but the momentum is clear. Whether you’re planning to grow, restructure, sell, or hand down your business, the best time to prepare is now.
Need help navigating the changes?
Book a confidential chat with our team. We’ll help you understand your risks, model your options, and put a plan in place.
