May 2026 | Newsletter 33
The government handed down its Federal Budget for 2026-27 on Tuesday 12 May 2026.
As expected, the 2026–27 Federal Budget proposes a series of significant tax reforms, with changes to capital gains tax and negative gearing being among the most impactful for individual investors.
The proposals include:
• Replacement of 50% CGT discount with inflation-adjusted indexation from 1 July 2027.
• The introduction of a minimum 30% tax rate on realised capital gains accruing from 1 July 2027.
• Negative gearing restricted to new-build properties.
• Minimum 30% tax on discretionary trusts from 1 July 2028.
Importantly, no major tax changes were announced for superannuation.