The 2026–27 Federal Budget introduces some of the most significant tax reforms in decades, with major changes to capital gains tax and negative gearing at the centre.
Beyond the headlines, these changes will directly influence how individuals, investors, and businesses make financial decisions over the coming years.
What This Means in Practice
Investment & Wealth Strategy
- Capital gains tax reform will change how long-term investments are structured and realised
- Timing of asset sales will become more important to manage tax outcomes
- Long-term strategies may need to be re-evaluated under the new rules
Property Investment
- Negative gearing changes will make established property investments less tax-effective
- New developments are likely to become a stronger focus for investors
- Portfolio strategies may need to shift to protect after-tax returns
Cash Flow & Personal Tax Planning
- Reduced ability to offset losses will impact cash flow planning
- Lower personal tax rates and new offsets will provide modest relief for individuals
Business & Investment Decisions
- The $20,000 instant asset write-off becoming permanent supports continued business investment
- Loss carry-back rules improve cash flow flexibility for companies
- Start-ups gain additional support through loss refundability measures
Structuring & Trusts
- A 30% minimum tax on discretionary trusts will likely drive restructuring decisions
- Businesses and investors may consider alternative structures such as companies or fixed trusts
Salary Packaging & Benefits
- Ongoing incentives for electric vehicles will influence fringe benefits and remuneration strategies
Compliance & Reporting
- Changes to PAYG instalments mean some businesses will need to adapt to more frequent reporting and payments
Key Dates to Be Aware Of
- 12 May 2026 (Negative gearing cut-off)
- 1 July 2026 (Tax cuts, $1k deduction, $20k asset write-off, loss carry-back)
- 1 July 2027 – MAJOR CHANGES (CGT reform, negative gearing restrictions, new tax offset, PAYG updates)
- 1 July 2028 (Trust minimum tax + start-up loss refunds)
- Apr 2027 – Apr 2029 (EV FBT transition window)
- From Apr 2029 (Ongoing EV FBT discount)
What You Should Do Next
These changes introduce both risks and opportunities, depending on your current structure and long-term goals.
Now is the time to:
- Review your investment and ownership structures
- Reassess property and asset strategies
- Plan ahead for upcoming tax changes and deadlines
If you’d like tailored advice on how these changes apply to you, get in touch with our team.
