June 2026 E News
- Jul 2
- 10 min read
Welcome to our first edition as Elevare Accountants, Chartered Accountants | Business Advisors.
As we wrap up the financial year and launch our new brand, we look back on a volatile six months shaped by shifting energy prices, global interest rates, and geopolitical shifts.
Inside this edition, we share an economic update to bring clarity to your financial horizon, alongside important regulatory updates for the new financial year. Most notably, we cover the new legislative ban on residential property loans within SMSFs ahead of the 10 August 2026 deadline, and the ATO’s newly adjusted 2026–27 motor vehicle depreciation and luxury car tax thresholds.
We also highlight an upcoming SafeWork NSW compliance workshop, outline essential July lodgment dates, and share some fantastic upcoming community events across the Northern Rivers.
As we step into this exciting new chapter as Elevare Accountants, we look forward to managing the details so you can focus on the big picture.
The Elevare Accountants Team
The first half of 2026 will be remembered as a financial year of two very different halves. Markets began the calendar year on a stable footing, supported by resilient growth, an artificial intelligence (A.I.) investment boom and an expectation that interest rates had peaked and would gradually fall. That backdrop was upended in late February by the outbreak of the Iran war, which triggered a sharp spike in oil and gas prices, a re-acceleration of inflation and a fundamental rethink of the interest rate outlook in Australia and abroad.
With a framework agreement to end the conflict now signed and energy prices retreating, this review looks at where the Australian and US share markets stood before the war, how they fared through it, where they sit today, and the key risks we are watching over the next six months. We also recap the journey for Australian interest rates and what the major forecasters expect from here.
Before the war: a stable start to 2026
Australian share market
The Australian market entered 2026 in good health. Commodity prices were firm, the Australian dollar pushed through US70c to a three-year high, and the half-year corporate reporting season opened strongly particularly among the major banks. Gold surged above US$5,000 per ounce in late January on safe-haven demand, lifting gold miners, while BHP traded above $55 for the first time in its history as Chinese markets reopened and the commodities outlook improved.
The one persistent concern was inflation. Australian annual inflation climbed to 3.8% in December and held in the high-3% range through January and February, remaining above the Reserve Bank's 2–3% target band. Services inflation in particular proved sticky, and the RBA had already signalled that interest rates would need to stay restrictive.
US share market
US equities were also broadly stable to firm early in the year, underpinned by a strong economy and an insatiable investor appetite for technology and A.I.-related stocks. The US economy had expanded at a robust annualised 4.4% in the September 2025 quarter, although growth cooled into late 2025. Importantly, heading into February the US interest rate market was still pricing in two Federal Reserve rate cuts before year-end a expectation that the war would shortly turn on its head.
Underlying all of this was a market increasingly dependent on a handful of large technology names. By the time the war began, market breadth had narrowed to among its tightest levels in 25 years we return to in the risks section.
The Iran war: a supply-side shock
How share markets behaved
Global equities fell sharply through March as higher energy prices, rising bond yields and geopolitical uncertainty drove a broad risk-off move. Sector performance diverged dramatically: energy stocks outperformed, while consumer discretionary, transport and other energy-sensitive sectors lagged on margin and demand concerns.
The Australian market proved relatively resilient thanks to its heavy weighting to resources and energy, but it was not immune. A string of profit warnings including Cochlear, CSL, Brambles, Qantas and Worley reflected the squeeze from higher fuel costs and the conflict's flow-on effects. The ASX 200 retreated from a mid-April high above 9,000 points and then spent roughly two months trading in a volatile range.
US equities were more volatile still, given their technology concentration and sensitivity to rising interest rate expectations. There were sharp rebounds whenever a ceasefire looked close at one point US equities recovered to pre-war levels followed by renewed falls as talks broke down. Long-dated bond yields rose to multi-year, (and in some cases multi-decade) highs, which reduced the usual cushioning role that government bonds play during an equity sell-off.
After the war: relief, but a higher rate world
As at the end of June, the S&P/ASX 200 sits near 8,800 points close to its highs for the year supported by firm iron ore and gold prices and a recovering financials sector. In the US, the S&P 500 trades near record levels at around 7,350 points and the Nasdaq near 25,300, with leadership again concentrated in a small group of A.I. and semi-conductor names.
The relief is real, but markets are now operating in a higher interest rate world than they expected at the start of the year. The most striking shift has been in the United States: at the end of February the market expected two Fed rate cuts in 2026; by late June, under new Federal Reserve Chair Kevin Warsh, the market was instead pricing in Fed rate hikes. This hawkish turn has lifted the US dollar, pressured commodity prices at the margin and weighed on rate-sensitive technology valuations. It is worth stressing that the ceasefire is a framework, not a settlement energy infrastructure across the Gulf which has been damaged, inventories are depleted, and the durability of the deal remains uncertain.
Australian interest rates: three hikes, then a pause
Where to from here?
The major forecasters are unusually divided on the path ahead, which itself tells you how much uncertainty the war has injected. In broad terms:
Source: Major-bank economics teams, June 2026. Forecasts are subject to change and are not a guarantee of future outcomes.
The common thread is that few economists now expect rate cuts before 2027 at the earliest, and one major bank still expects further increases. For borrowers, that means planning for rates to stay around current levels for some time; for savers, deposit rates remain attractive relative to recent years.
Risks for the next six months
Looking into the second half of 2026, we are watching a number of inter-related risks. None of these is a prediction; rather, they are the factors most likely to shape returns from here.
A fragile ceasefire and the oil price
Sticky inflation and the rate path
Narrow, technology-led US markets
US market leadership is concentrated in a very small group of A.I. and semiconductor stocks, with market breadth among its narrowest in 25 years. That concentration cuts both ways: it has powered strong index returns, but it also means a disappointment in a few large names could drag the whole market lower. With the Fed now leaning towards hikes, these high-valuation, rate-sensitive stocks are especially exposed.
The domestic growth and policy backdrop
Australian growth is subdued: consumer sentiment is soft, household spending has been patchy, and the labour market has begun to loosen, with unemployment rising to around 4.5%. Layered on top is the 2026–27 Federal Budget, which introduced significant tax changes for investors including changes to the capital gains tax discount and proposed taxes on discretionary trust distributions that have added a degree of uncertainty for shares and property. Watching how households and investors respond will be important.
Global growth and China
Global growth forecasts were downgraded through the war, with the World Bank trimming its 2026 outlook on the back of the conflict. China, Australia's largest trading partner, remains a mixed picture: industrial profits and exports have been strong, supported by the A.I. investment boom, but the property sector remains weak, with home prices falling for a 35th consecutive month. A sharper Chinese slowdown would weigh on the commodity prices that support our market.
Here are the returns for the end of June:
The Residential SMSF Property Loan Ban: Your Closing Window to Invest
In a swift and historic shift for the Australian superannuation landscape, the Federal Government has officially passed legislation to ban new residential property loans within Self-Managed Super Funds (SMSFs).
Introduced as a late-stage amendment to secure passage for a broader tax reform package, the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 successfully cleared both houses of Parliament and officially received Royal Assent on Friday, 26 June 2026.
Because the legislation dictates that the ban takes effect on the 45th day following Royal Assent, a hard enforcement deadline has been locked in: Monday, 10 August 2026. For SMSF trustees considering a residential property purchase using borrowed funds, the countdown has officially begun.
What Exactly is Changing?
The new legislation amends Section 67A of the Superannuation Industry (Supervision) Act 1993 (SIS Act) to narrow the legal definition of an allowable "acquirable asset" using borrowed funds. From 10 August 2026, SMSF trustees will be completely prohibited from entering into any new Limited Recourse Borrowing Arrangements (LRBAs) to purchase residential real estate.
However, two critical components of property investing inside super remain completely unaffected:
Commercial Property Survives: Real property that constitutes Business Real Property (such as commercial offices, warehouses, factories, and medical suites used exclusively for business) is exempt. SMSFs may continue to use LRBAs for eligible commercial property acquisitions under the existing rules.
Cash Purchases Survive: The legislation strictly bans borrowing money to buy residential property. It does not ban residential property as an asset class. Funds with sufficient cash reserves can still buy residential real estate outright without a loan.
The Rules for Grandfathering
The new regulations are strictly prospective and feature robust grandfathering protections for arrangements already under way:
Existing Property Loans: Current residential LRBAs are fully grandfathered. Refinancing arrangements that simply maintain or refinance pre-commencement borrowings will remain legally permitted.
Transactions Midstream: To be safely grandfathered, the definitive legal metric is the formal execution date of the purchase contract of sale, not the final settlement date. Acquisitions entered into before the 10 August deadline are protected, even where settlement occurs after commencement.
Proactive Steps for Investors
If using an SMSF loan to acquire a residential investment property is central to your long-term wealth strategy, the weeks leading up to 10 August represent your final opportunity to take action.
Find out the car thresholds that will apply for 2026–27 financial year and how they may affect your claims.
Income tax
The car limit threshold for 2026–27 is $69,883. This is the maximum value you can use to calculate depreciation on a vehicle where you:
use the vehicle for business purposes
first use or lease the vehicle in the 2026–27 income year.
As a business owner, you can claim a tax deduction for motor vehicle expenses you incur for business purposes.
If you use a vehicle for both business and private use, you can only claim the business portion. You must be able to show the percentage you claim as business use and have records to support your claim.
Goods and services tax (GST)
If you buy a vehicle for more than the car limit, the maximum GST credit you can generally claim is one-eleventh of the car limit (subject to certain exceptions). For 2026–27, the most GST credit you can claim is $6,353 (that is, 1/11 × $69,883).
You need to claim GST credits on your BAS within the 4-year time limit.
You can't claim a credit for any luxury car tax you’ve paid when you buy a luxury vehicle, even if you use it for business purposes.
Luxury car tax (LCT)
The LCT threshold for both fuel-efficient vehicles and other vehicles will increase in line with the motor vehicles consumer price index (CPI).
The LCT threshold for 2026–27 is:
$91,661 for fuel-efficient vehicles
$80,809 for all other luxury vehicles.
If you’re a motor vehicle dealer buying luxury vehicles under quote, you need to quote correctly to meet your LCT obligations. For more information, visit Get your LCT right.
Source and credit: ATO.gov.au
An introduction to work health and safety online advisory workshop
Date: Wednesday 8 July 2026
4:00 - 5:00 pm AEST
Location: Online Cost: Free
Event organiser: NSW - SafeWork NSW
This workshop provides NSW businesses with an introductory overview to workplace health and safety, your rights and responsibilities, risk management and WHS topics.
During the workshop, SafeWork NSW Inspectors will provide an introductory overview to workplace health and safety, your rights and responsibilities, risk management and WHS topics including:
small business rebate program
work health and safety laws
risk management
training
general electrical safety
traffic management
first aid and emergency planning
hazardous noise
remote or isolated work
plant
hazardous manual tasks
hot working environments
working at heights
psychological health.
By attending this event you may be eligible for the $1,000 Small Business Rebate.
Click the link below to register your interest.
Source and credit: Business.gov.au
7 July
Employee share scheme (ESS)
ESS statements to be sent to employees.
14 July
Single Touch Payroll (STP) finalisation
End of year finalisation declaration through STP due.
PAYG withholding
Payers must issue PAYG withholding payment summaries to payees (that is, employees and other workers) for payments not reported through STP.
21 July
Activity statements
Quarter 4 (April–June) PAYG instalment activity statement for head companies of consolidated groups – final date for lodgment and payment.
June monthly activity statements – final date for lodgment and payment.
Finalising all your PAYG instalments before you lodge your tax return will ensure you receive the correct amount of credit in your income tax assessment.
28 July
Activity statements
Quarter 4 (April–June) activity statements – final date for lodgment and payment.
Finalising all your PAYG instalments before you lodge your tax return will ensure you receive the correct amount of credit in your income tax assessment.
PAYG instalments
Quarter 4 (April–June) instalment notices (forms R and T) – final date for payment and, if varying the instalment amount, lodgment.
Finalising all your PAYG instalments before you lodge your tax return will ensure you receive the correct amount of credit in your income tax assessment.
GST instalments
Quarter 4 (April–June) instalment notices (forms SA and T) – final date for payment and, if varying the instalment amount, lodgment.
Superannuation for quarter 4, 2026
Due date for payment of super guarantee contributions for quarter 4 (1 April – 30 June 2026)
Super guarantee contributions need to reach your employee's super fund by this date – it's important that you leave enough time for your super payments to reach and be processed by your employee's super fund, especially if you're using a clearing house.
If you don't pay minimum super guarantee contributions for quarter 4 by this date, you must lodge a Superannuation guarantee charge statement – quarterly and pay the super guarantee charge to the ATO by 28 August 2026 to avoid additional penalties.
You can't offset contributions you have paid late for this quarter.
The quarterly super guarantee charge is more than the super guarantee you would have normally paid and is not tax deductible.
31 July
TFN report
Quarter 4 (April–June) TFN report for closely held trusts for TFNs quoted to a trustee by beneficiaries – final date for lodgment.
Foreign Account Tax Compliance Act (FATCA) Report
The reporting period for the FATCA is 1 January to 31 December. The due date for the report is 31 July the following year.
Common Reporting Standard (CRS) Report
Reports from Australian RFIs include data from January to December and are due annually, by 31 July in the following year.
Global and domestic minimum tax
The Global and domestic minimum tax return and the GloBE Information Return are due 31 July 2026 for fiscal years ending on or before 31 January 2025.
Source and credit: ATO.gov.au
Support Local - Community Events
Support our beautiful community by checking out what’s on across the Byron Shire. The Council’s events page is packed with local activities and there is something for everyone.
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