Federal Budget - Fever Dreams and Budget Speculation

May 12, 2026 Edward Dever

So says Federal Health Minister Mark Butler, commenting on Budget speculation over the past week.

He is correct. Many taxpayers will have read the plethora of Budget leaks and interviews to try to decipher the direction of Australia's tax policy following tonight's Federal Budget.

The tax landscape for capital gains, negative gearing and trusts seems likely to change substantially.

It's hard to see how some of the changes are not inflationary at a time when the Reserve Bank is raising interest rates in an attempt to quell inflation.

If, as is speculated, existing negative gearing arrangements are preserved, the Government is perhaps trying to limit landlords raising rents to compensate for the loss of tax benefits. Restricting negative gearing to new homes will skew investment towards this area. Which is what the Government wants.

If the Government eliminated all existing negative gearing arrangements, it would likely see a sharp decline in rental properties in inner city areas as cash-strapped investors sell to home occupiers, forcing existing renters to the outer city suburbs. And a sharp rise in rents by those landlords who decide to stay, aided by tenant demand for the reduced rental stock.

The proposed changes to capital gains tax may result in Australia having one of the world's highest capital gains tax regimes. As one commentator wrote, it will result in people ploughing their money into the CGT-free owner-occupied home, forcing up property prices. As a tax free option, this seems likely. Preserving the CGT status of existing investments may temper this.

Any changes to the taxation of trusts are likely to be inflationary as landlords using these structures seek to raise rents to remain tax neutral. Trusts are also used by many contractors, such as plumbers and electricians. (The contractor's spouse often does the business's accounts without drawing a salary, with the trust distributions allowing both to claim the tax free threshold.) Expect contractors to either restructure or seek to raise rates in an attempt to remain tax neutral.

[Update - some rollover relief will be available for those wishing to switch out of trusts.]

With some Federal politicians using up to 17 trusts, it's not surprising that the Government wants to act. Contractors (and others) may just be caught in the crossfire.

The devil will be in the details but the Government may follow the company tax model for trusts, adopting a base rate entity approach, or some other form of exemption for small businesses (similar to farm exemptions).

[Update - 30% tax payable by the trustee with non-corporate beneficiaries receiving non-refundable credits for the tax payable by the trustee.]

All will be revealed when the Federal Budget is brought down this evening although the full impact of the tax changes may be several years away.

Federal Budget

May 2026

The content of this publication is intended to provide a general overview on matters which may be of interest. It is not intended to be comprehensive. It does not constitute advice in relation to particular circumstances nor does it constitute the provision of legal services, legal advice or financial product advice.

Thailand Proposes Foreign Business Act Changes - Again

April 30, 2026 Edward Dever

A number of years ago, a client wished to establish a base in Thailand for its software operations. It chose Thailand over India because of its preferred infrastructure.

We advised obtaining BOI approval for the incentives offered. On the issue of foreign ownership, I told them not to put it in their presentation but ask the BOI officials at the end of the meeting if 100% foreign ownership would be acceptable - almost as an afterthought.

It was at a time that the Thai Government was courting international tech companies. Not only was 100% foreign ownership acceptable but they did not need to locate in Bangkok's Software Park which was a normal Board of Investment condition at the time for software businesses. They could set up near their other offices on Rama 4. (At the time, Software Park had no vacancies so this was a practical solution.) So enthusiastic was the BOI that they invited them to attend an international BOI roadshow before formal approval was granted.

From a sketch outline on a piece of paper in a meeting room, the operation grew to around 500 employees.

The Thai Government has now indicated that it proposes to amend the Foreign Business Act to deal with the issue of control and nominee arrangements.

Others have stated that any amendments should also include a relaxation of the number of business activities restricted to Thais under the FBA's Schedules, particularly Schedule 3. I agree.

The reality is that a vast number of non-US Treaty and non-BOI approved foreign-controlled businesses in Thailand operate under nominee style arrangements. These can vary from bare nominee arrangements to more sophisticated arrangements involving preference shares, voting and management control.

We used to call this the Nominee Spectrum - with bare nominees at the dark grey (riskier) end and more sophisticated models at the lighter grey end. But it was all grey and relied on the Ministry of Commerce's interpretation of the FBA - not looking behind share ownership at the issue of control.

Over the years, the MOC has clamped down on certain arrangements such as preference shares but this only resulted in the emergence of more sophisticated arrangements.

A more vigorous crackdown may be about to occur.

The MOC has announced a review of the FBA with particular emphasis on complex cross-shareholding structures and a significant increase in penalties to deter violations of the FBA, including asset seizures and tougher criminal penalties.

The MOC is at an early stage on its reform road and the final outcome is yet to be determined. Any real reform of the issue of control is likely to necessitate the unwinding of many foreign-controlled businesses in Thailand that would fail any scrutiny.

Thai Government to Reform Foreign Business Act

April 2026

E-Mobility Devices - The Risk for Landlords Continues

March 30, 2026 Edward Dever

The Queensland Government has released its Report following its Inquiry into e-mobility safety and use in Queensland.

The Report contains some sobering facts for property owners.

- e-mobility devices are the leading cause of lithium-ion battery related fires in Queensland.

- the majority of these fires are caused by e-scooters.

- many thermal runaway incidents stem from unsafe charging practices, particularly the use of incorrect chargers.

- many users attempt to boost battery capacity or power by installing larger, non-standard batteries, often from unreliable sources.

- lower quality products present higher risks, particularly when charged in bedrooms or near soft furnishings.

- in a typical house fire in a modern home, a room will transition to 'flashover' – i.e. be fully involved in fire within 3 to 5 minutes. An e-scooter fire can reach flashover in under one minute.

- the rapid onset of fire reduces the warning period provided by smoke alarms before a potentially catastrophic explosion or spread of fire occurs.

- e-mobility devices and lithium-ion batteries are not currently regulated under Queensland’s electrical safety framework.

Among the Report’s recommendations, the Committee proposes that “the Queensland Government advocate to the Federal Government for the implementation of mandatory national safety standards for lithium-ion batteries in e-mobility devices and regulation, to enhance consumer safety and reduce the risk of fires.”

The Report notes that the NSW Government already requires all lithium-ion e-micromobility devices sold in the state to be tested, certified and marked before they can be sold. Rather than following the NSW Government’s lead, the Report recommends waiting for a national-led approach.

The Report does however recommend the Queensland Government “introduce anti-tampering laws that prohibit the sale and use of modification kits or assistance by retailers to increase the power and speed of e-mobility devices”.

The Committee also recommends the Queensland Government “continue to advocate with national counterparts for stronger mandatory import controls in order to prevent illegal and dangerous devices entering Queensland”.

The Report can be accessed here - Inquiry into e-mobility safety and use in Queensland

March 2026

Smoke Alarm Tests - Trust But Verify

February 26, 2026 Edward Dever

A recent example highlights the importance of compliance monitoring by landlords.

As part of a periodic compliance check on smoke alarm testing, annual smoke alarm servicing invoices were being paid by the agent but smoke alarm tests were not being conducted as required under Queensland legislation.

Section 148B of the Queensland Fire Services Act 1990 provides that the lessor must test each smoke alarm on the premises within 30 days before the start of a tenancy. While not specifically mentioned, this also applies to lease renewals.

An apparent administrative failure by the agent meant that testing requests were not issued on several lease renewals. Non-compliance risks fines of $834.50 per breach. The fine is small compared with the annual rent.

However, the greater risk lies in the event of a fire during a non-compliant period, particularly if it involves a smoke alarm failure.

One of the first requests by the Queensland Fire Department following a fire will be for the property’s smoke alarm compliance records. There is a risk of civil liability for negligence and possible other criminal liability. Insurance claims for property damage may be denied.

While the primary responsibility lies with the agent to ensure smoke alarm compliance, landlords risk being caught up in proceedings where agents fail in their responsibilities. And, of course, possible insurance consequences.

Queensland Fire Department - Smoke Alarms

February 2026

Employment - Side Gig Or Main Gig?

February 11, 2026 Edward Dever

A recent Australian Fair Work Commission ruling confirmed that an employer's decision to sack an employee was valid because he had breached his contract by running a personal business alongside his role at the firm without approval.

Across South East Asia, I have seen numerous examples over the years where an employee's side gig has interfered with them carrying out their main work duties.

Some of the more interesting:

An employee who never came to work on Mondays. We discovered he was operating a similar business on weekends and Mondays and then working in his main job Tuesday to Fridays.

An employee operating an eBay store from under their work desk. Jammed with different products, it almost constituted a fire hazard. Another employee was using the office address (searchable on Google) as the address for their retail outlet.

By far the most interesting example was an employee operating a competing business, complete with its own website, from the company's own premises.

The employee was in a position to redirect business to his own business. He used company negotiated supplier rates for his own business and, from what could be ascertained, was at times billing all his customer costs to the company while retaining all income.

Obviously, this was more fraud than a side gig.

And, while not strictly a side gig, there was the employee who would spend his evenings blogging about his daily work activities. Nothing particularly wrong with that except he would go into detail about confidential client meetings and upload copies of confidential documents from the meetings. Probably wasn't the smartest career advancement move.

Another not quite side gig was the employee who would spend his days surfing not-safe-for-work websites, copying images and emailing them to colleagues and friends. His online activity timeline showed he started as soon as he arrived at work and continued until the end of the day with a break for lunch. He came to management's attention as he inadvertently copied the global head of HR on one of his emails. Oops.

Worker dismissed for side-hustle he claims to have disclosed

February 2026

Queensland Solar Rebates For Landlords

January 22, 2026 Edward Dever

The Queensland Government recently introduced incentives for landlords to adopt solar power on their investment properties.

The Supercharged Solar for Renters program provides eligible landlords with rebates of up to $3,500 to install solar photovoltaic (PV) systems on their rental properties across Queensland.

But read the fine print.

The rebate varies between $2,500 and $3,500 depending on the solar system capacity installed, with the rebate capped at the lesser of the cost of the system and the applicable rebate.

The rebate only applies to individuals who are residents of Australia and own an eligible residence.

This would seem to exclude landlords who hold their properties using vehicles such as companies, trusts or SMSFs. Also excluded are Australian and foreign non-residents.

The residence must be a class 1a building in Queensland (or a secondary building such as a granny flat), individually metered and subject to an eligible lease. Among the excluded types of buildings are larger class 2 apartment buildings. The maximum rent is $1,000 per week.

Tenant consent is required and, if applicable, written strata approval.

At the time of the final rebate application, the lease must have a remaining term of not less than eight months. A new lease must have been entered into after conditional rebate approval and contain terms dealing with cleaning and maintenance of the solar system and how solar energy will be charged and apportioned.

To ensure tenants benefit from electricity savings, rent cannot be increased under the lease at the time of final rebate approval unless the lease at the time of the conditional approval contained a rent increase clause.

Landlords will need to ensure they comply with the lease timings under the rebate rules. Difficulties may also arise where a tenant leaves during the rebate approval process. At a minimum, a new tenant consent and lease may need to be submitted.

A landlord may apply for rebates in relation to a maximum of three properties.

There is currently no sunset date for the rebate program. However funding is limited to $26.3m with a program target of approx. 6,500 properties.

Supercharged Solar For Renters Rebate

January 2026

Brisbane City Council Prepares To Go Nuclear On Short-Stay Accommodation

December 17, 2025 Edward Dever

Brisbane City Council plans to introduce a ban on certain owners in low density suburbs from leasing their property on short-stay platforms such as Airbnb and Stayz. A three-strike rule will apply to permits issued for short-term accommodation.

Owners in low or low-medium zoned areas will need to get an appropriate development approval or cease operating as short-stay accommodation. Council is expected to write to almost 500 home owners operating as short-stay providers to inform them they do not have or are unlikely to receive the relevant planning approvals.

Failure to obtain a permit could lead to fines of more than $140,000. As part of the permit changes, operators will need to nominate a 24-hour contact to respond to complaints within an hour and report back to the council within a day. Operators who get three warnings from the council over a three-year period will have their permit cancelled.

It is not clear if the rates surcharge applicable to short-stay accommodation will continue.

Council will also continue to advocate changes to the State’s body corporate laws to give apartment owners more power to limit short-term rentals in their buildings.

Public consultation will continue until 16 February 2026.

Brisbane City Council announces crackdown on short-stay accommodation in residential areas

Proposed Short Stay Accommodation Local Law 2025

December 2025

Employment Rejection Letters - It's All In The Timing

October 20, 2025 Edward Dever

As a student, some work experience is useful for the resume. Back in 1987, while studying Law and the Securities Institute's Diploma of Applied Finance and Investment, and with an Economics degree under my belt, I applied to numerous businesses for some work experience over the summer break. I adopted the age-old tactic of applying to as many businesses as you can to see who responds.

With an interest in finance, I applied to Rothwells Limited, the merchant bank run by the late Laurie Connell and also Tricontinental Corporation. Students of Australian business history will recall that both these companies were consumed by their losses and bad debts in the aftermath of the 1987 stock market crash. Rothwells collapsed in 1988 following the withdrawal of life support by the WA Government and the late Alan Bond's Bond Corporation. Tricontinental collapsed in 1990 due to its disastrous loan book, including loans to the late Christopher Skase's Qintex Group. Somewhere, I also have a work experience rejection letter from Qintex. (I must have been aiming for the future insolvency trifecta!)

The date of the rejection letters is interesting. Tricontinental's letter is dated 19 October 1987. That night, the US stock market crashed. Rothwells's letter is dated 20 October 1987. Kind of the State Manager to take time out from the Australian stock market imploding around him to sign my rejection letter.

In the end, I spent a couple of weeks in late 1987 doing work experience with the law firm where I later completed Articles of Clerkship before being admitted as a Solicitor.

An amusing anecdote on the 38th anniversary of the 1987 stock market crash.

October 2025

Vale Sister Joan Evans PBVM AO

October 6, 2025 Edward Dever

3 May 1932 - 29 September 2025

I had the privilege of assisting Sister Joan over a period of 15 years. I was one of many volunteers drawn to her kind soul and her desire to help others.

Sister Joan spent 25 years in the Klong Toey slums in Bangkok assisting the underprivileged. Through programs like the Milk Run and the Rice Run, she changed lives.

At the core of Sister's mission was education. Helping children by buying school uniforms, paying transport costs so they could get to school and providing money so they could buy something to eat. Sister ensured that these children could become educated and have better lives. Helping people break free of the poverty cycle she used to say. How right she was.

But her mission work went much further. From providing milk formula to babies, to helping with cost-of-living issues for Klong Toey residents to ferrying the elderly to hospital, Sister Joan never seemed to stop. Taking her for her favourite meal of lamb chops was a good way to ensure a bit of a break for her. Many of her other supporters also looked after Sister in different ways. She felt much loved by her community and her supporters.

Sister Joan worked with steely determination but was modest about her achievements. In 2018, Sister was made an Officer (AO) in the General Division of the Order of Australia for distinguished service to the international community of Thailand through humanitarian assistance programs for the disadvantaged, and to improving the lives of women, children and the elderly.

Rest in Peace, Sister Joan. You will be missed.

October 2025

Flashback to 1988

September 8, 2025 Edward Dever

Expo 88 was a World Expo held in Brisbane with the theme "Leisure in the Age of Technology". The event is considered a significant turning point for Brisbane, spurring subsequent tourism, investment, and the development of the South Bank Parklands.

I recently donated a layout plan of the Expo 88 tenancies to the Queensland State Library. The plan was approved on 2 February 1988, close to the opening on 30 April 1988.

It is similar to the James Maccormick layout plan from 1983 which is held by the State Library as part of the James Mccormick World Expo 88 Collection but shows the proposed tenancies close to the opening date in 1988.

Back story to its acquisition.

Expo 88 ran from 30 April to 30 October 1988 at South Bank in Brisbane. An amazing event, it attracted an average of 100,000 people per day. As a law student at QUT, you would hear the nighttime fireworks on the other side of the Brisbane River at 10pm, around the time the Law Library was closing.

In my law student days, I would buy and sell office furniture, mainly filing cabinets, for extra cash.

At the end of Expo 88, most of the assets, including office furniture, were sold by public tender. I successfully tendered for around 100 used filing cabinets (and whatever contents remained in them).

The layout plan was in one of the filing cabinets.

Stored for many years, the State Library plans to make the layout plan available for viewing by the public.

James Mccormick World Expo 88 Collection

September 2025