12/05/2026
Federal Budget Tax Changes Overview 2026
The Australian Federal Budget has introduced significant changes to taxation, particularly affecting property and investment strategies.
1. Negative gearing remains unchanged for existing property investors but is limited for new property buyers and investors in other assets.
2. The 50% discount on capital gains tax is abolished, with a minimum 30% tax rate on all gains from July 2027, affecting all investments, not just property.
3. Family trusts will face a minimum 30% tax rate on distributions, reducing their tax effectiveness.
4. A positive note is a $250 Tax Offset benefit for 13 million Australians with income between $18,000 and $45,000. This increases the effective tax-free threshold for Australian workers by nearly $1,800 to $19,985 (or up to $24,985 for workers eligible for the Low-Income Tax Offset).