Mortgage professionals urged to share their stories as tax reform debate intensifies
The Mortgage and Finance Association of Australia (MFAA) has thrown its weight behind a national campaign urging small business owners – including mortgage brokers – to share their concerns about proposed changes to capital gains tax (CGT) and trust taxation announced in the Federal Budget.
The Council of Small Business Organisations Australia (COSBOA) launched its Fair Go campaign to give Australia's small business community a direct channel to policymakers as debate continues over reforms that could significantly impact business investment, succession planning and retirement outcomes.
The MFAA, as a COSBOA member, is actively encouraging its broker members and their small business clients to share their experiences, and send a letter to their local MP and senators.
Budget reforms and consequences for brokers
The MFAA's support is grounded in the fact that the overwhelming majority of its members operate as small businesses. For many, the eventual sale of their broking practice is the centrepiece of their retirement strategy – and the proposed CGT changes could upend those plans.
MFAA chief executive Anja Pannek (pictured, left) said the campaign represents a critical opportunity for brokers to make their voices heard.
"Brokers are small business owners who build their businesses over years, often decades, working with their clients, investing in their teams and their communities," Pannek said. "This campaign is an important opportunity for our members to share their experiences and ensure their voice is part of this conversation.
"For many brokers, the eventual sale of their business is a central part of their retirement planning. They have invested years building something of real value and it is important that policymakers understand what these proposals could mean for that planning."
The MFAA has lodged a submission to the Senate Economics Committee, which is reviewing the proposed legislation, and has also developed a suite of frequently asked questions and guidance resources to help members understand the proposed discretionary trust taxation changes and their potential business impacts.
What the Budget proposed
The Albanese government's May 2026 Budget included proposed changes to CGT and the taxation of discretionary trusts that have drawn concern from small business groups across the country.
The centrepiece of the proposals is the replacement of the existing 50% CGT discount for individuals, trusts and partnerships with cost base indexation and a 30% minimum tax rate on capital gains accruing from 1 July 2027.
While the government has framed the reforms as measures to improve tax fairness, critics argue they could discourage investment into smaller, growth-oriented businesses.
Roberto Sanz, general manager of sales and partnerships at small business lender Prospa, described the Budget as "a mixed Budget for small business… There are practical measures that support investment, but the broader reform package introduces complexity that business owners will need time to work through”.
The concern for brokers is not limited to their own tax affairs. Many of their small business clients are grappling with the same uncertainty, and the proposed reforms land at a time when SME confidence is already under pressure.
A sector stretched
A recent Prospa and YouGov survey of 500 Australian business owners found that just 60% of SMEs are confident they can remain cashflow positive over the next 12 months – down sharply from 70% in February 2026. Among that group, the proportion feeling "very confident" fell from 32% to just 24%, signalling a meaningful erosion of business resilience across the sector.
Sanz said the data pointed to a clear opportunity for brokers to act as strategic advisers to their small business clients during a period of significant policy uncertainty.
COSBOA chief executive Skye Cappuccio (pictured, right) said it was vital that the voices of those actually affected be heard before any changes are locked in.
"Small businesses are already navigating rising costs, tighter margins and ongoing economic uncertainty," Cappuccio said. "Many business owners are highly concerned about the impact proposed changes to CGT and trust taxation could have on their ability to invest, grow and plan for the future."
According to COSBOA data, small businesses employ more than five million Australians, contribute more than $500 billion to the national economy each year, and make up more than 97% of all Australian businesses. Cappuccio said the campaign was designed to ensure decision-makers understood the real-world implications of the proposed reforms.
