The 2026–27 Federal Budget is one of the most significant in a generation when it comes to tax. For individuals, investors, business owners, and family groups, the changes are substantial — and in some cases, the window to act before they take effect is shorter than most people realise.

The headline measures include personal income tax cuts for every Australian worker, a new $1,000 instant work-related deduction that simplifies tax time for millions of employees, and a permanent $20,000 instant asset write-off for small businesses. On their own, these changes are welcome and straightforward.

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

Capital gains tax is being fundamentally overhauled. The 50% CGT discount that has existed since 1999 will be replaced from 1 July 2027 with inflation-adjusted cost-base indexation and a minimum 30% tax on gains. For investors who have built portfolios under the current rules, this changes the planning landscape significantly — particularly around timing of disposals and the sequencing of asset sales.

Negative gearing is being restricted to new residential properties from 1 July 2027. Existing investors are protected, but anyone buying established residential property after Budget night can no longer offset losses against their wage or salary income. For property investors still building their portfolio, the rules have changed.

Discretionary trusts — the cornerstone of tax planning for thousands of Australian family businesses — face a 30% minimum tax on distributions from 1 July 2028. A three-year restructure relief window opens from 1 July 2027 for those who need to change their arrangements. That window will close. The time to assess your position is now, not when the rules are already in force.

For businesses, there is genuine good news too — loss carry-back returns from 2026–27, allowing eligible companies to offset losses against tax paid in the prior two years. Start-ups get loss refundability from 2028–29. R&D incentives are being strengthened 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 changes don't all take effect immediately, but the planning decisions that will determine how much they affect you need to happen well before the commencement dates.

If you're not sure how any of these measures affect your specific situation — whether you're an individual, an investor, a business owner, or a family group with a trust structure — we're here to help you work through it.