Budget Impacts as It Stands Now

The 2026–27 Federal Budget, handed down on 12 May 2026, is one of the most significant in a generation when it comes to tax. And as of the end of June, it has stopped being a set of proposals.

The headline reforms are now law — which changes the conversation from if to how you plan around them.

For individuals, investors, business owners, and family groups, the changes are substantial. In some cases the window to act before they take effect is shorter than most people realise.

The straightforward wins came through first.

Personal income tax cuts for every worker, a new $1,000 instant work-related deduction that removes receipt-keeping for millions of employees, and a permanent $20,000 instant asset write-off for small businesses (turnover up to $10 million) all passed and now apply.

A $250 Working Australians Tax Offset follows from 2027–28.

But the measures that require the most attention are the structural reforms — and they go well beyond a simple tax cut.

Capital gains tax has been overhauled — and this is now law.

From 1 July 2027, the 50% CGT discount that has existed since 1999 is replaced with cost-base indexation and a minimum 30% tax on gains. It applies to individuals, trusts and partnerships — not to companies, superannuation funds, or foreign and temporary residents. It reaches all CGT assets, including pre-1985 assets, which are treated as reacquired at market value on 1 July 2027. The main residence exemption and the small business CGT concessions are untouched. Only gains accruing after 1 July 2027 are affected, so there is a genuine, closing window to realise gains under the current 50% discount before that date — a decision worth modelling now, not in June 2027.

Negative gearing has been restricted — also now law.

From 1 July 2027, losses on established residential property acquired after 7:30pm AEST on 12 May 2026 can no longer be offset against wage or salary income. Those losses are quarantined against residential property income (and future gains) and can be carried forward. Anything you held — or were under contract to buy — before that moment is grandfathered and keeps the current rules until sold. New builds are exempt and keep both negative gearing and a choice of CGT method. Commercial property and shares are unaffected.

Discretionary trusts face a 30% minimum tax but this one is not yet law.

As announced, from 1 July 2028 a 30% minimum tax would apply at the trustee level to the taxable income of discretionary trusts, with non-corporate beneficiaries receiving a non-refundable credit.

Fixed and widely held trusts, super funds, charitable trusts, special disability trusts, deceased estates and testamentary trusts existing at 12 May 2026 are excluded.

A three-year restructure rollover is proposed to run from 1 July 2027 to 30 June 2030. This measure remains in consultation, so the detail can still shift — but for family businesses relying on income splitting to lower-rate beneficiaries, the direction of travel is clear, and the planning question is already live.

A concession for founders.

In response to concerns the CGT change would hit entrepreneurs with low-cost-base companies, the government announced an Innovative Business CGT Concession for founders, employee-share-scheme participants and early-stage investors. It has been announced but not yet legislated — one to watch if you're building a business you intend to sell.

For businesses, there is real good news too.

Loss carry-back returns from 2026–27, letting eligible companies offset losses against tax paid in the prior two years. Start-ups get loss refundability from 2028–29. And the R&D incentive is being sharpened for firms doing genuine experimental work.

Taken together, this is a budget that rewards those who plan ahead and penalises those who don't. The commencement dates sit in 2027 and 2028 — but the decisions that determine how much these changes cost you need to be made well before then. The 50% CGT window closes on 30 June 2027. The trust restructure window, once legislated, closes on 30 June 2030. Neither reopens.

If you're not sure how any of this applies to your specific situation — whether you're an individual, an investor, a business owner, or a family group with a trust — that's exactly the conversation we're built for. We'll walk you through the numbers, the reasoning, and the options, so you can decide with clarity rather than guess.