2026-27 Federal Budget Summary
What These Changes Could Mean for Investors
The proposed 2026–27 Federal Budget Summary outlines the proposed potential changes that may impact income tax, investments, property ownership structures and wealth planning strategies.
Key Proposed Changes
Some of the key proposed changes include:
- A new working tax offset of $250 from FY2028
- A proposed $1,000 minimum tax deduction for workers
- Reducing the income tax rate from 16% to 15% for taxable income between $18,201 and $45,000
- Proposed limits on negative gearing
- Replacing the Capital Gains Tax discount with indexation and a proposed minimum tax rate of 30% from 1 July 2027
- Introducing a minimum tax on family trust distributions from 1 July 2028
Capital Gains Tax and Trust Distribution Changes
One of the most discussed proposed changes is the removal of the Capital Gains Tax discount and the taxation of trust distributions.
We understand these proposed changes may concern some clients, particularly those with investment properties, family trusts or corporate beneficiaries.
At this stage, we encourage clients not to make any rushed decisions, as there is still a transition period ahead and further detail is expected to emerge over time.
Interestingly, the superannuation system has largely been left untouched this year and may become an increasingly important consideration for some Australians moving forward.
Speak With Our Financial Planning Team
To request a copy of our summary of the proposed 2026–27 Federal Budget changes, or to discuss how these proposed changes may affect your investments, tax planning or personal financial circumstances, please complete the enquiry form below and our team will be in touch.