Tax Changes in 2026 Could Rewrite Your Exit Plan

Selling, handing over, or stepping back from your business is not just a paperwork exercise; it is the payday for years of effort. The problem is, what you keep in your pocket can shift quickly when tax rules change, and small business tax changes in 2026 are set to do exactly that. If your exit is on the cards in the next three to seven years, you cannot afford to ignore what this means.

From the start of that year, we are expecting changes around who counts as a small business for tax purposes, tighter access to small business capital gains tax concessions, adjustments in superannuation rules, tweaks to Division 7A for shareholder loans, and shifts in how losses are used. You do not need to be an expert in all of this, but you do need a plan that turns these changes from a cost and compliance stress into an opportunity.

Handled well, tax change can be used to lift your sale value, cut the tax bill at exit, and speed up your personal wealth-building. At Marsh & Partners in Brisbane, we focus on practical, proactive tax and business improvement strategies so you are not just keeping the ATO happy, you are building a business that is ready to sell for more.

What Small Business Tax Changes in 2026 Mean for You

The small business tax rules are shifting. The definition of a small business, based on turnover or net assets, may move, which can decide whether you qualify for key concessions at exit. Rules around the 50% capital gains tax discount and the specific small business CGT concessions, like the active asset test or retirement exemption, are expected to tighten rather than loosen.

These changes flow straight into your exit strategy. They affect:

• When you sell, before or after certain rules take effect

• Whether you sell company shares or the underlying business assets

• How goodwill, brand and intellectual property are taxed

• How much of the sale price you actually keep after tax

The structure you trade through will be front and centre. For example:

• Sole traders may find it harder to split income or access all concessions cleanly

• Companies can be attractive for buyers but may trigger extra tax layers if not structured well

• Trusts can be flexible but need careful management of beneficiaries and records

Not understanding these changes is no longer just bad luck. It is a risk you can manage. Getting across the rules early and baking them into your exit plan is part of being an accountable business owner, not something you leave for the week before settlement.

Reshape Your Exit Strategy Around Tax, Not After It

Tax should be a design tool in your exit, not a cleanup exercise when the deal is already signed. Your structure, deal terms and timing all need to be modelled around the 2026 rules well before you agree to a heads of agreement.

Different exit paths can produce very different tax results:

• A straight trade sale of business assets versus selling the company shares

• A management buyout or family succession, compared with a third party buyer

• A gradual earn-out tied to performance targets versus a single lump sum payment

Each of these paths can change which concessions apply, the timing of capital gains tax, how much goes into super, and how much is taxed at higher marginal rates. Starting prep two to five years out gives you time to:

• Make sure business assets qualify as active assets

• Clean up your balance sheet and exit non-core or passive items

• Fix shareholder and director loans to avoid Division 7A issues

• Document value drivers like recurring revenue and systems

Think of it in wealth terms. Every 1% of tax you do not pay at exit has the chance to compound in your personal investments for decades. Leaving exit tax planning to the last minute is like handing the ATO a bonus you did not need to pay.

Using 2026 Tax Rules to Lift Business Value Before Sale

Good tax planning is often just good business improvement in disguise. The same work that prepares you for 2026 small business tax changes can also push up the multiple a buyer is willing to pay.

For example, focusing on:

• Stronger profit margins and clean financials

• More recurring revenue and less owner dependence

• Accurate, timely reporting and clear KPIs

can all help you qualify for key concessions and give buyers more confidence in the numbers.

There are also specific pre-exit moves that can respond to the new rules, such as:

• Restructuring into a more tax-efficient entity using rollover relief, where appropriate

• Moving or separating non-core or passive assets to meet active asset and asset value tests

• Tidying director and shareholder loans to limit Division 7A exposure around settlement

Accountability matters here. Set clear pre-sale targets so everyone is aligned, for example:

• Target EBITDA levels and trend lines

• Working capital and debt reduction goals

• A documentation list, including contracts, leases and IP records

Smart use of depreciation rules, instant asset write-offs if they are available, and planned loss use can improve your reported performance and cash flow in the 18 to 24 months before a sale. That can be the difference between an average and a standout result.

Lock in More of Your Sale Proceeds Through Smart Structuring

Once the sale price is agreed, the next question is how much you keep and where it goes. Exit-ready structures and contribution strategies can legally reduce tax and build long-term wealth.

Some of the key levers under the 2026 settings will include:

• Using small business CGT concessions to make contributions to superannuation, within the rules

• Using family trusts or corporate beneficiaries to stream or cap tax, where this is allowed

• Timing life events and retirement to maximise access to retirement exemptions

The common mistakes are simple but costly, such as:

• Ignoring super contribution caps and missing a chance to move sale proceeds into a low-tax environment

• Failing to keep records of cost base for shares, assets and improvements

• Not tracking how long assets have been active within the business

• Running with the same structure you started with, even though the business has outgrown it

Scenario modelling should be part of your planning. You can run comparisons like:

• What if you sell just after the 2026 rules change versus a few years later?

• What if profits lift before sale compared with holding steady?

• What if you retire fully versus stay on part-time?

The goal is not just a one-off tax saving, it is turning a single exit event into a durable, diversified wealth base for your family. That means thinking beyond the sale contract and into how funds are invested and protected for the long term.

Make 2026 Your Turning Point, Not a Tax Shock

Small business tax changes in 2026 should be a deadline for decisions, not just another update that gets filed away. Owners who act now will have more options when it comes time to exit, and more control over how much they keep.

A simple action plan can help keep things on track:

• Step 1: Get an exit readiness and tax impact review of your structure, concessions, timing and business value

• Step 2: Build a 12 to 36 month roadmap to fix gaps, clean up the balance sheet and improve profits

• Step 3: Align your personal wealth goals, like debt reduction, lifestyle and retirement, with your exit and tax plan

Putting dates around these steps, such as a strategy session before each new financial year, helps avoid drifting past key windows for action. At Marsh & Partners, we work with Brisbane business owners who want to be proactive, stay accountable, and leave on their own terms while keeping more of what they have built.

Secure Your Business Future Before New Tax Rules Hit

The right planning now can turn upcoming small business tax changes in 2026 into an opportunity rather than a setback. At Marsh & Partners, we work alongside you to protect cash flow, safeguard assets and keep your long-term goals on track. If you would like tailored advice for your structure and exit plans, contact us to book a confidential discussion.