The Federal Budget 2026–27 introduces significant tax reforms affecting individuals, property investors, trusts and businesses. Key changes include proposed long‑term reforms to the capital gains tax (CGT) system, negative gearing, and trust taxation, alongside targeted relief measures for workers and small businesses.
From 1 July 2027, the 50% CGT discount is proposed to be replaced with cost‑base indexation and a minimum 30% tax on net capital gains, with transitional relief for existing assets. Residential property investors will see limits placed on negative gearing for established properties acquired after Budget night, while new builds remain incentivised.
Discretionary trusts face a proposed 30% minimum tax from the 2029 income year, with non‑refundable credits flowing to beneficiaries and rollover relief offered to support restructures out of discretionary trusts.
For individuals, the Budget includes a new $250 Working Australians Tax Offset from 2028, a $1,000 standard deduction for work‑related expenses, legislated personal tax rate cuts, and increased Medicare levy low‑income thresholds.
Business measures include a permanent $20,000 instant asset write‑off, reintroduction of loss carry‑back for eligible companies, loss refundability for start‑ups, enhanced R&D incentives, and changes to PAYG instalments.
A full breakdown of all measures is available in the attached NTAA Budget Summary handout.