2026 Federal Budget guide
The Budget targeted the rules you’ve planned around. Here’s what to check before anything changes.
Capital gains tax, negative gearing and discretionary trusts were all in the Government’s sights. If you’re over 45 and built your wealth through property, a business, shares, trusts or super, these changes are aimed squarely at you. Some of these changes are now law. Others are still proposals.
Our view
Some of it is now law. Some of it is still a proposal. Don’t react to the headline. Model the numbers. The people who come through this best won’t be the ones who moved fastest; they’ll be the ones who paused, ran the numbers and decided deliberately before the new rules start.
Your Budget check-in
Find out which changes actually affect you.
Tell us a little about your situation and we’ll arrange a short call with Andre to work out what matters for you, what can wait, and what’s worth modelling now.
- The check-in is free and there’s no obligation
- Fee-for-service: any full review is quoted as a fixed fee first
- We coordinate with your accountant and lawyer
- Licensed through Boston Reed Pty Ltd (AFSL 225738)
- Offices in Melbourne and on the Gold Coast, clients Australia-wide
What happens next
From check-in to a plan you can act on.
A short check-in
A free conversation about your position and which changes are likely to matter to you.
Modelling
If it’s worth it, we gather your details and model your position under the current rules, the new rules starting on 01/07/2027 and the measures still proposed, across a range of scenarios.
Written advice you can act on
We walk you through the results and provide written advice. Where a change is already law, you can act now; where it is still a proposal, we tell you what to watch and when to decide.
Important: status
Some of this is law. Some is still a proposal.
The Government announced these measures in the 2026 Federal Budget. Since then, the CGT, negative gearing and SMSF borrowing changes have become law, while the trust measures are still proposals. Proposals need draft legislation, consultation and passage through Parliament, and the detail can change, sometimes a lot, along the way.
Budget night. The Government announces the measures and proposed start dates.
Draft legislation and consultation. Treasury releases the detail and industry responds. This is where measures often change. The trust measures are at this stage.
Bill in Parliament. The legislation is debated, amended, passed or blocked.
Law. Once passed, the rules apply from their start date. The CGT, negative gearing and SMSF borrowing changes are at this stage.
We’ll update our insights as each measure moves through this process. Don’t make irreversible decisions on a proposal or a headline.
The key measures
Six measures that dominate the planning picture.
The Budget contained dozens of measures. For pre-retirees, retirees, property investors and business owners, these are the ones that matter most. Each shows its status as at October 2026.
Capital gains tax discount (legislated)
Now law under the Treasury Laws Amendment (Tax Reform No. 1) Act 2026, which received Royal Assent on 26/06/2026. From 01/07/2027 the 50% CGT discount ends for individuals, partnerships and trusts. It is replaced by indexation of the cost base to inflation (CPI) plus a 30% minimum tax on real gains, for assets held at least 12 months. It covers all CGT assets, not just property: shares, ETFs, managed funds and business interests included. Gains accrued before 01/07/2027 keep the 50% discount, with assets valued at that date. Super funds and companies are unaffected, and your main residence remains exempt. Most coverage framed it as a property issue. It isn’t.
Negative gearing on established property (legislated)
Now law under the same Act. From 01/07/2027, losses on established residential property can only be offset against residential property income and gains; excess losses are carried forward. Properties held at 7:30pm AEST on 12/05/2026 are grandfathered until sold. Properties bought between then and 30/06/2027 keep negative gearing only until 30/06/2027. New builds that add to housing supply remain eligible. Super funds, including SMSFs, are excluded, and commercial property and shares are unchanged.
Minimum tax on discretionary trusts (proposed)
Not law. Treasury released an exposure draft in September 2026. As drafted, a 30% minimum tax would apply to trust net income from 01/07/2028. Fixed and widely held trusts, super funds, special disability trusts, deceased estates, testamentary trusts set up before 01/07/2028 and primary production income are excluded, and there is an option to elect fixed distributions. Families who set up trusts on advice fifteen or twenty years ago need to know whether the structure still earns its keep.
Trust restructure rollover relief (proposed)
Not law. A proposed window from 01/07/2027 to 30/06/2030 to move from a discretionary trust to a company or fixed trust, with income tax and CGT deferred. Stamp duty may still apply. Whether a restructure makes sense depends on what the trust holds and what you plan to do with it.
Small business CGT concessions (retained)
The small business CGT concessions remain. A legislated change lifts the turnover threshold for the 50% active asset reduction from 2027-28; the Government has stated $10 million. Confirm the detail with your accountant. For owners planning a sale, the structural and timing decisions made between now and exit still decide how much of the value you keep.
SMSF borrowing for residential property (legislated)
Since 10/08/2026, SMSFs cannot enter new limited recourse borrowing arrangements to buy residential property. Existing arrangements are grandfathered, and borrowing to buy business real property is still permitted.
Status is as at October 2026. Proposed measures may change or not proceed. This is a summary, not a complete list of measures.
Sources: Treasury Laws Amendment (Tax Reform No. 1) Act 2026; Treasury exposure draft on the minimum tax for discretionary trusts (September 2026). Information current as at October 2026 and general in nature.
What it could mean for you
Find yourself in one of these.
You own investment property
In your own name or through a family trust. The CGT and negative gearing changes, now law from 01/07/2027, touch every long-term decision: hold, sell, restructure, refinance or build.
Questions worth modelling:
- Hold versus sell for each property under the rules before and after 01/07/2027
- How gains accrued before and after 01/07/2027 are treated, and the valuation you need at that date
- Whether each property is grandfathered for negative gearing, and whether your lending is still structured the right way
- What you’d do with the proceeds, including super contributions
You’re a business owner planning to exit
You intend to sell or hand over in the next five to ten years. The small business CGT concessions remain, but your structure and timing will decide whether you get full value from them.
Questions worth modelling:
- Whether you qualify for the small business CGT concessions as currently structured
- Whether a trust-to-company restructure makes sense if the proposed rollover relief proceeds
- Your super contribution strategy in the year of sale
- A plan for the money after the sale
You’re a pre-retiree or retiree with several assets
Property, shares, super, a family trust and personal investments, with retirement decisions depending on all of them. The integrated picture is the conversation that matters.
Questions worth modelling:
- Every asset and entity in one view, under the new rules and the proposals
- How CGT, super, trust and estate decisions interact
- Retirement income that lasts as long as you do
- Aged care funding and passing wealth to the next generation
Questions
What people are asking us.
Should I make major decisions now?
Some of these changes are now law. Others are still proposals. The CGT and negative gearing changes start on 01/07/2027, so decisions about timing, valuations and structure are worth modelling well before that date. For the trust measures, which are still proposals, preparation rather than action is usually the right approach until the law is settled.
I already have an accountant. Why would I need this?
A good accountant is essential, and we work alongside them. What we add is a strategy across every asset, entity and structure you hold, modelled over the long term. Where you need accounting or tax services, we can introduce you to our referral partner Altiora Advisory.
How is this different from a normal financial review?
A standard review looks at investments, super and insurance. A Budget review looks at your whole position (property, borrowing, business interests, trusts, super, estate and aged care planning) through the lens of the new and proposed changes. For trusts and companies, see our Structure Review.
Do I have to become an ongoing client?
No. Some people use the review as a one-off and act on it with their own accountant and lawyer. Others choose to stay with us. There’s no expectation either way.
Does this apply to shares as well as property?
Yes. The legislated CGT change applies to all CGT assets held by individuals, partnerships and trusts, including shares, ETFs and managed funds. That’s one of the most overlooked parts of the Budget. Gains accrued before 01/07/2027 keep the 50% discount.
The planning window is open now. Use it.
A short check-in tells you which changes matter for you and what to watch. No cost, no obligation.
Some measures described are now law and others are still proposals that may change or not proceed. Information is current as at October 2026. General advice only. This page does not take into account your objectives, financial situation or needs, so consider whether it is appropriate for you and read our Financial Services Guide before acting. Wealth Effect Group (CAR 424768) and Andre Dirckze (AR 395157) are Authorised Representatives of Boston Reed Pty Ltd, ABN 89 091 004 885, AFSL 225738. Accounting and tax services are provided by our referral partner Altiora Advisory, not by Wealth Effect Group. See our important information.