Federal Budget 2026
The 2026 Budget includes a mix of measures affecting tax, investments, housing and everyday costs. While some changes may create opportunities, others may mean it’s worth reviewing your current plans.
Note: Unless stated otherwise, these changes are proposals only and may or may not be made law.
Taxation
• A $1,000 standard deduction for work-related expenses from 2026/27
• A new Working Australians Tax Offset of up to $250 per year (from 2027/28)
• The lowest marginal tax rate reducing to 14% by 1 July 2027
• Increased Medicare levy thresholds for lower income households
Investment and Property
• Changes to negative gearing for newly acquired residential properties from 12 May 2026
• Reforms to capital gains tax (CGT) from 1 July 2027, including removal of the 50% discount on future gains
• Introduction of a 30% minimum tax on discretionary trusts from 1 July 2028
These changes may be particularly relevant for property investors and families using trust structures.
Superannuation
There were no major structural changes to superannuation in this year’s Budget.
• The Low Income Superannuation Tax Offset (LISTO) will be expanded, increasing both the eligibility threshold and maximum benefit
Aged Care and Retirement
• Expansion of the Support at Home program, with more packages available
• From October 2026, some personal care services fully government funded
• Additional funding to support residential aged care capacity and upgrades
Government Support
Changes continue to focus on cost-of-living pressures and system sustainability:
• Adjustments to Pension Supplement rules for Australians travelling overseas
• Ongoing NDIS reforms to strengthen long-term sustainability
What this means for you
Many of these measures are still proposals and may change before becoming law. What’s most important is how these changes relate to your personal situation. If you would like to discuss whether any of these developments are relevant to you, please feel free to get in touch.
Further information
2026 Budget Client Summary (Full Version)
Key Fact Sheets
Tax explainer – Minimum tax on discretionary trusts
Tax explainer – Negative Gearing and Capital Gains Tax Reform