Azure Group HQ abuzz with activity

1 month into FY27 and we've been busy! The new financial year brought with it a slew of legislative changes that impacted businesses and individuals alike.

Our team of advisors has been busy with valuations in light of Division 296, helping clients think through the proposed budget changes, and assisting businesses through the early days of PayDay Super.

In July, we also took the time to come together as a firm to reflect on a massive 2025-26 and celebrate our wins. Partners and leaders across the firm set the tone for the year ahead and the response was palpable—we cannot wait to go one better this year!

On the industry side, we've been engaging with Treasury to weigh in on the proposed changes to minimum tax on discretionary trusts. Learn more about our submission below.

That leaves our latest articles: this month's newsletter looks at the importance of second opinions when it comes to R&D advice before turning to the spotlight on to a Q&A with CFO and COO Olivia Angsioco who has recently joined us at CFO Australia.

Don't miss all this and more, below!

Trust Tax Consultation: Submission lodged

Last week, we weighed in on the trust tax consultation which came to a close on 31 July 2026. Our submission focuses on two key tenets of a well-designed taxation system—equity and neutrality—and it is our view that the proposed changes to the minimum tax on discretionary trusts will result in outcomes that mark a departure from both.

The changes proposed disregard the wider role trusts play in asset protection, succession planning, long-term wealth management, separating personal risks business owners have as directors, and providing families and small businesses the flexibility they need over time.

Our submission highlights 3 key concerns:

• double taxation for corporate beneficiaries
• legal and financial limitations around restructuring
• the disproportionate impact to small businesses.

As such, our submission calls for:

• corporate beneficiaries receive a credit for the minimum tax already paid at the trust level to prevent double taxation
• active business income to be subject to a more appropriate minimum rate aligned with the existing 25% base rate entity tax and
• for Treasury to recognise the financial and legal barriers many businesses may face in restructuring despite the CGT rollover relief proposed.

While we understand the purpose of these provisions, we believe refining the legislation to ensure businesses using discretionary trusts are not unfairly disadvantaged is paramount.

If you have any questions about how the proposed changes to discretionary trusts can affect your business, drop us a line at ourteam@azuregroup.com.au

Will Division 296 change the role of property in SMSFs?

It's a question we've been asked frequently in recent months.

For many Australians, direct property has long been a cornerstone of SMSF investment strategies. While Division 296 does not specifically target property, it does reduce the tax concessions available to individuals with total superannuation balances exceeding $3 million. As a result, some trustees may wish to reconsider whether property remains the most appropriate investment for their circumstances.

In addition, recent legislative changes restricting new borrowing arrangements for residential property within SMSFs may further reduce the attractiveness and accessibility of property as an asset class for some investors. Existing arrangements are generally unaffected, however purchasing residential property through an SMSF may now require significantly more upfront capital.

That said, property continues to play an important role in many well-diversified SMSF portfolios. Investment decisions should always be driven by your long-term retirement objectives, liquidity requirements, cash flow needs and overall investment strategy—not tax considerations alone.

If you're concerned about how Division 296 or the recent SMSF borrowing changes may affect your retirement strategy, we recommend seeking tailored advice before making any changes to your fund.

R&D advice: Is there a case for a second opinion? 

Two experienced R&D advisors can review the same business and arrive at very different conclusions about:

•    which projects qualify
•    which activities should be included
•    what expenditure can legitimately be claimed
•    how the technical narrative should be documented.

That doesn't necessarily mean one advisor is wrong. It's a matter of how each advisor applies their professional judgement.

For businesses investing hundreds of thousands—or even millions—into innovation, relying on the same approach every year could mean leaving significant value on the table.

So, could you benefit from a second opinion? Find out in our latest R&D article. 

Welcome to CFO Australia: Olivia Angsioco

We're thrilled to share that Olivia Angsioco has joined the team at CFO Australia.  

Olivia is a CPA-qualified CFO working with founder-led SMEs across hospitality, technology, and multi-site businesses in both part-time and fractional capacities.

With a hands-on, outcomes-focused approach, Olivia has helped numerous businesses move from reactive to structured by bringing clarity to their numbers, strengthening reporting, and aligning finance with commercial performance.

Olivia is confident stepping into underdeveloped or stretched finance environments and building the foundations needed to support growth. Equally, her skills have seen her implement scalable infrastructure by fundamentally transforming systems and operational finance processes.

With prior experience as both CFO and COO, Olivia brings a balance of strategic oversight and operational depth—particularly valuable in founder-led businesses that need clarity, accountability, and momentum.

In our latest sit-down interview, we asked her about her time at organisations like the WWF, NRL, and Tripadvisor's The Fork. Through it all, we also get a glimpse of the kind of leader that Olivia is.

Don't miss this one. 

Thanks for reading! We'll be back next month with all the happenings from the world of accounting, business, and finance right across August. 

IN | SIGHTS

Head over to our blog for articles that unpack the latest news.

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