2026–27 Federal Budget
What it Means as at 1 November 2026
The rules are set.
Now plan what's next.
The biggest changes to capital gains tax in 25 years are law, and the trust tax is now before Parliament. The question is no longer what's changing. It's what you do in the next eight months, and how you structure for the decade after.
What's law, what's close, and what's still talk
Plans built on announcements can unravel. Here's the status of each measure as at 1 November 2026.
Capital gains tax overhaul
The 50% discount is replaced by inflation indexation and a 30% minimum tax on gains, for individuals, trusts and partnerships.
Royal Assent 26 June 2026 · Starts 1 July 2027Negative gearing limits
Losses on established homes bought after 7:30pm (AEST) on 12 May 2026 can't reduce your wage income. Existing holdings and new builds are protected.
Starts 1 July 202730% minimum tax on discretionary trusts
Bills tabled 14 October 2026. The Opposition doesn't support them, so the outcome rests with the Senate crossbench. Details may still move.
Proposed start 1 July 2028CGT "finer details" bill
A second bill covers how trusts apply indexation and how the new housing exemption works. Watch this one if you hold property through a trust.
Tabled 14 October 2026Already in effect: personal tax cuts, the $1,000 instant work-related deduction and the permanent $20,000 instant asset write-off for businesses under $10 million turnover. The founders' CGT concession is announced but not yet legislated.
Five dates that shape every decision
You don't lose the discount you've already earned
If you own an asset on 30 June 2027 and sell it later, your gain is cut in two. Growth up to that date keeps the 50% discount. Growth after it falls under the new rules. Nothing is taxed until you actually sell.
Assets bought before 20 September 1985 lose their CGT-free status for growth after 1 July 2027. New residential builds keep a choice between the 50% discount and indexation. Your main residence and the small business CGT concessions are unchanged.
Eight moves worth making now
None of these are about rushing. They're about knowing your numbers before the deadlines decide for you.
Model before you sell
There's no automatic win in selling before 30 June 2027. Your pre-reform growth keeps the discount anyway. A sale only makes sense if it also suits your goals: reducing concentration risk, funding super, freeing capital for a better use.
Lock in your valuations
The 1 July 2027 market value is the line between old and new rules. A solid valuation protects the discounted portion. A weak one hands it back to the ATO.
Treat grandfathered property as gold
Established property you held before 12 May 2026 keeps negative gearing until you sell it. Swap it for another established property and that protection is gone. New builds keep both negative gearing and the choice of CGT method.
Pressure-test every trust
Under the Bill, each discretionary trust has three roads: accept the 30% minimum tax, make an election that fixes who gets what, or restructure. Groups with several trusts need to choose together, because the choices interact.
Rethink the bucket company
As drafted, a company receiving trust income can't claim a credit for the trust's 30% tax, so that income is effectively taxed twice. The strategy that capped tax at the company rate still works this year and next. After 1 July 2028 it likely won't.
Protect your small business concessions
The small business CGT concessions survive untouched, and they can be worth more than the discount ever was. A rushed restructure can break eligibility, so check before you move anything.
Use super and succession tools
Super funds keep their one-third CGT discount, so they become a relatively better home for long-term growth. Testamentary trusts that existed at 12 May 2026 are excluded from the trust tax, and the government has said genuine testamentary trusts will be exempt.
Structure for the next decade, not the last one
Separating your trading risk from your wealth still matters. What's changed is the tax maths behind which entity holds what. The 2027 to 2030 rollover window is the chance to rebuild your structure without triggering CGT. It doesn't cover WA transfer duty, GST, lender consent or existing loans, so those need costing first.
The deadlines are fixed. How ready you are when they arrive is not.
We listen. Then we get to work.Three roads for every trust
From 1 July 2028 (if the Bill passes), each discretionary trust in your group goes down one of these. There's no universal right answer. It depends on who the beneficiaries are, what the trust holds, and your plans for sale or succession.
A · Stay and pay
- Trustee pays at least 30% on trust income
- Individual beneficiaries get a credit (not refundable)
- Excess franking credits can be refunded to the trust
- Low-income beneficiaries lose the benefit of their lower rates
- Company beneficiaries get no credit
B · Make the election
- Nominate beneficiaries who always receive a fixed percentage
- Trust sits outside the minimum tax
- Year-to-year flexibility is gone
- Once revoked, it can never be remade
C · Restructure
- Move assets to a company or fixed trust
- CGT rollover relief from 1 July 2027 to 30 June 2030
- WA transfer duty, GST and finance still apply
- Can affect small business concessions and asset protection
A structure that keeps risk and wealth apart
The principle hasn't changed: the business that takes risks shouldn't also hold the family's wealth. What's changing is which entity is the most tax-effective home for each piece. Here's a common shape we'll test against your numbers.
Illustrative only. Whether a company, fixed trust or super fund is the better home for investments depends on your income, your timeframe and how you'll eventually draw the money out. More entities don't have to mean more admin: with one connected cloud ledger across the group, the extra effort is small.
Where accountants agree, and where they don't
Broad agreement
- Don't sell just to beat 1 July 2027. Sell only if it suits your wider plan.
- Good records and valuations at the changeover will directly affect tax later.
- The bucket company strategy is unlikely to survive the trust tax as drafted.
- The restructure rollover helps with CGT, but stamp duty is often the bigger cost.
Still open
- Whether the trust Bill passes the Senate, and in what form.
- Exactly which trusts count as "discretionary" at the edges.
- How trusts will apply indexation (the second CGT bill).
- Whether the election (road B) is worth the lost flexibility for most families.
A short list to work through
Individuals and investors
No jargon. No surprises. No wondering if you left money on the table.- List every asset with an unrealised gain and when you bought it.
- Flag which properties are grandfathered for negative gearing.
- Run "sell before" versus "hold" numbers on your top three assets.
- Map out super contributions for this year and next.
- Check your will and any testamentary trust wording.
Business owners and family groups
Strategic thinking. Financial discipline. Operational execution.- Draw a current map of every entity, who owns it and what it holds.
- Model each trust down roads A, B and C.
- Review bucket company loans and unpaid entitlements.
- Confirm small business CGT concession eligibility.
- Cost any restructure, including WA duty, before 1 July 2027.
Get your numbers in front of you
Bring your asset list and your structure. We'll model the options, show you the working, and tell you plainly what we'd do and why.
Email to book a strategy sessionImportant: This page is general information only, current as at 1 November 2026. It isn't tax or financial advice and doesn't consider your circumstances. The capital gains tax and negative gearing changes are law. The discretionary trust minimum tax and the second CGT bill are before Parliament and may change or not pass. Please get advice specific to your situation before acting.
How we provide tax services: Our tax return preparation, tax planning and strategy work is carried out under a supervisory arrangement with Abfabs Pty Ltd trading as Easy Tax Solutions (registered tax agent 70473005). Easy Tax Solutions reviews and lodges returns and is the tax agent of record with the ATO.
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