• A 30% minimum tax on discretionary trusts is proposed from 1 July 2028, with primary production income excluded. Clarification is still being sought on whether retail nurseries fall within the exemption.
• Major Capital Gains Tax (CGT) changes are proposed from 1 July 2027, replacing the current 50% discount model with CPI indexation and a minimum tax on gains.
• The instant asset write-off will become a permanent measure at $20,000 per financial year for businesses with turnover below $10 million.
• Reforms to the Working Holiday Maker program have been flagged, although details remain limited.
• Measures to strengthen fuel and fertiliser supply security have been announced.
• Funding reductions across the Agriculture, Fisheries and Forestry portfolio total $191.6 million over five years.

Overview of Budget Measures

The 2026–27 Federal Budget introduces a number of changes that could affect businesses across the horticulture sector. Proposed measures include tax reforms, workforce changes, supply chain initiatives and adjustments to government funding. While some announcements provide clear direction, others remain uncertain and may require further clarification as details emerge.

From 1 July 2028, the Government plans to introduce a 30% minimum tax on discretionary trust income. The tax would apply at trustee level and may significantly alter existing income distribution arrangements.

Primary production income has been excluded from the proposed measure, which is important for businesses operating within recognised primary production activities. However, questions remain around how retail nurseries, mixed businesses and vertically integrated operations may be treated, and further clarification is expected.

The Budget proposes substantial changes to the CGT system from 1 July 2027. The existing 50% CGT discount would be replaced with cost base indexation linked to inflation, alongside a minimum tax rate on capital gains.

The changes are expected to apply to assets held for more than 12 months, including property, shares and business assets. Questions remain around whether existing concessions for primary production businesses will continue and what this may mean for horticultural enterprises.

The instant asset write-off has been made permanent at $20,000 per financial year for small businesses with annual turnover under $10 million.

This ongoing measure provides businesses with greater certainty when planning purchases and investing in equipment and assets.

Changes to the Working Holiday Maker program have been signalled, although detailed information has not yet been released.

As many horticultural businesses rely on seasonal and supplementary workers, any changes to visa settings, worker eligibility or employer obligations may affect workforce planning.

The Budget also includes initiatives aimed at improving Australia’s fuel and fertiliser security.

While specific details remain limited, the focus is on strengthening supply resilience and reducing exposure to international disruptions, helping maintain access to essential inputs used across agriculture and horticulture industries.

The Government has also announced savings measures across the Agriculture, Fisheries and Forestry portfolio, with funding reductions totalling $191.6 million over five years.

Affected areas include a range of grant programs and industry initiatives. These changes may influence future funding opportunities, industry development programs and broader sector support.

Further analysis and clarification are expected in the coming months as explanatory materials and draft legislation become available. Businesses may wish to monitor developments closely and seek professional advice to understand any potential impact on their individual circumstances.

This article is adapted from content originally published by Greenlife Industry Queensland (GIQ). Read the original article here: Greenlife Industry Queensland Federal Budget Briefing

Disclaimer: This information is general in nature and does not constitute financial advice. Businesses should seek professional advice regarding how any proposed changes may affect their individual circumstances.