14/05/2026
The 2026 Australian Federal Budget wasn’t just about tax cuts and energy rebates. Treasurer Jim Chalmers dropped some big, unexpected reforms aimed at “intergenerational fairness” and housing affordability.
Here are some of the highlights:
💰Discretionary Trusts - New 30% minimum tax
From 1 July 2028, trustees of discretionary trusts will pay a minimum 30% tax on trust income.
This targets income splitting to lower-income family members.
There are some exemptions and rollover relief available.
🏠Negative Gearing - Limited to New Builds
From 1 July 2027, you’ll only be able to negatively gear new residential properties.
Existing investments are grandfathered. If you owned it before budget night, nothing changes until you sell.
💸Capital Gains Tax - 50% Discount Gone
From 1 July 2027, the 50% CGT discount is replaced by cost base indexation and a minimum 30% tax rate on capital gains.
Gains up to 1 July 2027 still get the old 50% discount and pre-1985 assets sold before then remain exempt.
Treasury says the top 10% of households hold 90% of private trust wealth, and the current system favours asset income over wages.
📍It’s important to remember these are proposed reforms only. They’re not law yet. They still have to pass through Parliament, and there’s already pushback from small business groups and tax advisers calling for consultation.
Do you have any thoughts on the budget proposals? 👇
