Every budget brings change — but this one has some real bite for investors, especially owners of investment properties. Here’s what the 2026–27 Federal Budget means for your personal finances, and where you might need to act.
Tax cuts — more money in your pocket
The tax rate on income between $18,201 and $45,000 drops to 15% from 1 July 2026, and again to 14% from 1 July 2027. That’s a saving of $286 per year — and that’s the best news we have for you.
Capital Gains Tax — a significant shift
From 1 July 2027, the 50% CGT discount will no longer apply to most assets. Indexation will apply instead, but a minimum 30% tax rate on capital gains applies regardless. Importantly, pre-CGT assets sold after 30 June 2027 will be subject to CGT for the first time. If you’re holding assets with this in mind, it’s worth reviewing your position before that date.
Investors in new residential property can still access the 50% discount.
Negative gearing — it depends on when you bought
Properties purchased before 12 May 2026 — negative gearing continues as normal. New investments in existing dwellings — negative gearing is available until 30 June 2027 only. New dwellings — negative gearing remains available. If you no longer qualify for negative gearing, losses carry forward and can offset future rental income or capital gains.
EVs in salary packaging
If your employer offers electric vehicles as part of a salary package, the full FBT exemption ends 1 April 2029. A discounted rate will apply after that. More detail to come — we’ll keep you updated.
Tax, property, and investment planning just got more complicated — but that doesn’t mean your decisions have to be. If any of these changes have you wondering what to do next, we’re here to help you get the grasp of it.
