2026-27 Federal Budget Highlights

The Federal Treasurer, Dr Jim Chalmers, handed down the 2026–27 Federal Budget at 7:30 pm (AEDT) on 12 May 2026.

The Budget represents a significant reform package aimed at reshaping Australia’s tax system and investment landscape. It introduces wide-ranging changes affecting how individuals, investors and businesses are taxed, particularly in relation to capital gains, trusts and residential property investment.

At its core, the Budget marks a structural shift in the taxation of wealth and investment income with key reforms targeting long standing concessions and established investment structures.

Key Tax Measures

• Capital Gains Tax (CGT) reform – Replacement of the 50% discount with an inflation indexed system along with a minimum 30% tax on realised capital gains (from 1 July 2027, subject to transitional rules).
• Discretionary trust taxation – Introduction of a 30% minimum tax on discretionary trust income (from 1 July 2028), affecting the tax efficiency of family trust structures.
• Negative gearing changes – Restriction of negative gearing benefits to new residential property builds only (from 1 July 2027).

The Budget also includes a range of supporting measures, including personal tax cuts, business incentives (such as expanded loss carry-back and instant asset write-offs) and targeted investment and innovation initiatives.

These reforms represent one of the most significant shifts in Australia’s tax framework in recent decades. However, many implementation details remain subject to further legislative development and Australian Taxation Office guidance.

Our technical team has prepared a detailed summary of the key measures from the Budget. Please click on the link below to read our full analysis.

If you have any questions regarding how these changes may impact your personal or business circumstances, please contact your Bell Partners Adviser.

At your shoulder and at your service.

Bell Partners