Council
19 June, 2026
Forum to discuss tax changes
THE impacts of the most significant tax changes in Australia since the introduction of the GST will be discussed at a forum in Warrnambool later this month.
Former professor of accounting at Deakin University, Dr Graeme Wines, will lead the forum (hosted by the Australian Independent Retirees (AIR) Warrnambool branch) at the RSL at 10am on Friday, June 26.
Dr Wines described the tax changes introduced in the recent federal budget as the most significant since the introduction of GST at the start of this century.
Those taxes that will most affect retirees relate to capital gains tax (CGT), discretionary family trusts, and the private health insurance rebate.
Dr Wines urged people to find out how the changes would impact them.
“While the nature of some of the changes is very technical, the presentation aims to explain these in an easily understood manner,” he said.
Dr Wines said the introduction of a minimum 30 per cent tax on capital gains represented a major change from the principle of progressive tax rates.
While the usual 30 per cent income tax rate does not apply until a taxable income of $45,000 per annum, the proposed CGT rules will hit taxpayers earning below that amount.
While there is an exemption from the minimum 30 per cent rate for those on government income support, such as the aged pension, others, including self-funded retirees, will be hit with this higher rate.
The changes could also affect others on lower incomes, such as students and casual workers, who have been investing in shares in an effort to build up a home deposit.
The new rules for discretionary family trusts specify a 30 per cent tax on distributions.
Unlike franking credits on shares, which are refundable in the hands of the taxpayer, trust beneficiaries will receive only a non-refundable tax credit for any distributions received.
“The net effect of the change is that the higher 30 per cent tax rate will apply to those in the nil or 16 per cent tax brackets,” Dr Wines said.
“While there will be exemptions for primary production income and existing testamentary trusts, there is no exemption for individuals receiving government income support payments as there is under the proposed CGT rules.”
Any retiree who has all or part of their assets in a family trust will be subject to the proposed rules.
“While treasurer Jim Chalmers justified the proposed rules as mainly applying to only wealthier people, there are many small businesses, including tradies, who operate via a discretionary trust and who will be hit by the proposed rules,” Dr Wines said.
The other major change for retirees is the reduction in the private health insurance rebate.
The proposed change will apply the lower 24 per cent rebate to everyone, including those aged 65 and over, significantly increasing the net cost of private health insurance for retirees.
Further topics to be covered at the AIR meeting will include other major budget announcements and federal government and Victorian state government finances.
The meeting starts at 10am at the Warrnambool RSL and it’s free to attend.
