For small business owners, the 2026-27 Federal Budget has prompted a broader conversation about how to plan and invest.
Since the Budget landed in May this year, a series of tax reforms have shifted the spotlight towards commercial property. With changes to self-managed superannuation fund (SMSF) property investment rules, alongside expanded tax concessions for eligible business owners, these reforms are encouraging investors to reassess their portfolios, and look towards office space as a future strategy.
The budget amendments reshaping decisions
The Federal Budget introduced a number of reforms that will influence how Australians invest.
From 1 July 2027, negative gearing will be limited to newly built residential property, while the 50 percent Capital Gains Tax (CGT) discount will be replaced with an inflation-based model ¹. For small businesses, the $20,000 instant asset write-off for eligible businesses will be extended, providing continued support for investment in equipment and improving cash flow ².
Further amendments were made to the new tax legislation as it passed through the Senate in June, broadening the conversation.
One of the most significant changes affects SMSFs. As of 10 August 2026, SMSFs will only be able to use a Limited Recourse Borrowing Arrangement (LRBA) to purchase business real property, restricting investment opportunities in residential and other property that does not qualify ³.
Additionally, from 1 July 2027, the aggregated turnover threshold for the small business 50 percent active asset CGT reduction will increase to $10 million, opening the door for more eligible Australian businesses to access this concession ⁴.
Together, these changes are encouraging business owners to consider commercial property as a long-term business asset and investment.
Why owning your workspace is becoming more attractive
As the proposed changes to the investment landscape continue to take effect, there has been a shift towards commercial assets.
Experts report that the trend of purchasing business real property through SMSFs is only set to increase throughout the next financial year, with ‘mum and dad investors’ increasingly taking the leap into commercial property ⁵.
A timely opportunity in Melbourne’s north
As more businesses explore commercial investment, projects such as 28 Greengate offer the type of property gaining increasing attention. With investment fund managers predicting that office, retail and warehouse spaces will become preferred investments, this five-level strata office building fits the bill.
Located in the growing New Epping precinct north of Melbourne, 28 Greengate office suites have been designed with flexibility in mind, offering spaces suited for small- to medium-sized businesses looking to expand into a fast-growing employment hub.
New Epping will be home to a projected workforce of more than 7,000 people and 6,000 future residents, alongside major health, education and retail infrastructure. 28 Greengate occupiers will be well-placed to benefit from this surrounding population, with growth across New Epping expected to continue over the coming years ⁶.
Looking towards the future
While the full impact of the tax changes handed down with the Federal Budget has yet to be realised, one thing is becoming clear: many small business owners are taking a closer look at how commercial property fits into their financial future.
As policy continues to evolve, developments such as 28 Greengate offer businesses and investors the opportunity to establish themselves in a growing commercial precinct while building an asset for the future.
Find out more about 28 Greengate HERE.
