The budget conversation, the auction room, and a sharp ETA insight

The Federal Budget is sparking real conversation

The CGT and negative gearing changes have been a major talking point with the business owners and acquirers we've spoken to this month. From quiet concern about future asset values to clients reviewing company and trust structures sooner than they otherwise would.

Three areas where lending implications most often come up:

• Negative gearing changes for property investors holding through trusts or companies
• Capital gains tax for business owners thinking about a future sale or restructure
• Purchase plans over the next 12-24 months, where the 1 July 2027 effective date materially shifts the long-term after-tax position

We built an interactive budget tool on our website that lets you select your position and see what changes apply to you specifically. It runs on the published measures, not the headlines. Use the budget tool here.

Talk to your financial advisor or accountant on planning and tax mechanics. What we do is map what these changes mean for the lending side of any decision: a business acquisition, a commercial property purchase, or restructuring a facility ahead of 1 July 2027.

From the auction room

At the most recent CBRE auction we attended, yields cleared between 5.0% and 6.5%, with 43% of the book pre-sold before the room opened. Fast food, medical, and manufacturing tenancies with strong covenants remain the asset classes attracting the sharpest pricing.

Post-budget, we're seeing increased interest in commercial property as an asset class. The auction room reflected it.

The magic of low multiple + growth

The cleanest acquisition framing we've come across this month came from the Acquiring Minds podcast. The argument: growth is systematically underpriced in small business acquisitions. The headline multiple matters far less than the trajectory underneath it.

Consider two scenarios side by side:

• Scenario A: 4x EBITDA multiple, 3% annual (GDP-style) growth
• Scenario B: 5x EBITDA multiple, 15% annual growth

In Scenario B you pay one extra turn of EBITDA upfront. The business compounds at five times the rate over four years, debt service is only marginally higher, and the income trajectory is dramatically better. Growth deserves a much larger premium than the market currently prices in.

The argument comes from David Graf, a self-funded searcher who bought a light manufacturing business called Danhard for $2M (2.7x EBITDA) and grew it 58% in 19 months. His entire search filter was built around businesses showing measurable growth trends, not the lowest available multiple.

The same logic applies to Australian buyers we work with. When structuring acquisition finance, the question we ask lenders isn't just what the business is doing today. It's what debt-service capacity looks like 24-36 months out.

Client case: regional service station re-leverage

We helped a client with a regional Victorian service station sitting outside the lending appetite of most Big 4 banks. Specialised asset class, non-metro, mid-renovation. The client needed working capital released for the next stage without losing the rate on the original facility.

• Original purchase price: $1.675M
• Revaluation 18 months later: $2.05M (a 22.4% lift supported by trading performance and renovations)
• Loan re-leveraged at 65% LVR, well above what most lenders would offer on this asset class
• Net new funds released: $243,750

Complex commercial assets need lenders who understand them.

Australia ETA Community

If you're exploring business acquisition in Australia, the Melbourne ETA community is a good place to start. Resources, upcoming events, and connections in one place. Visit the Australia ETA Community.