The Federal Government last night handed down its 2026 Budget, with the largest reforms since the Howard era. With the Iraq war and ongoing fuel crisis causing uncertainty across markets and a focus on ‘intergenerational fairness’, there are some key changes for investors.

The Budget, if it moves forward into legislation, will see scaled-back tax breaks for property investors, as well as the abolishment of negative gearing for new investors. The capital gains tax (CGT), as we reported recently, will revert to its original 1999 design, an approach linked to inflation.

The key points:

• Replacement of 50% CGT discount with inflation-adjusted indexation from 1 July 2027
• Introduction of a minimum 30% tax rate on realised capital gains accruing from 1 July 2027
• Negative gearing restricted to new-build properties
• Minimum 30% tax on discretionary trusts from 1 July 2028

Some positive changes for small businesses include an instant asset write-off, tax refunds on prior losses for start-up companies and further venture capital tax incentives.

It’s important to remember that all Budget announcements remain proposals at this stage and still need to be legislated. However, if you’re considering reviewing your investment strategy, we can provide tailored guidance.

For a full breakdown of the announcement, read the FAAA Federal Budget Wrap 2026.

For a confidential discussion at any time, please contact us.

General Advice Warning:

The information in this blog is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider whether the information is appropriate for you and seek professional advice before making any financial decisions.
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