Treasurer Jim Chalmers has handed down his fifth Federal Budget, continuing the Government’s focus on tax reform, cost of living relief and housing affordability. This year’s Budget introduces a mix of immediate support and longer-term structural changes that will impact individuals, investors and business owners. Here is a simple breakdown of what matters most for you.
The 2026–27 Federal Budget focuses on three key areas tax reform, cost of living relief, and housing affordability.
Tax changes
For individuals
- Personal tax cuts continue from 1 July 2026, with the 16% tax rate reducing to 15%, then 14% from 2027
- A new $1,000 standard deduction for work-related expenses will simplify tax returns
- A new Working Australians Tax Offset (from 2027–28) will provide additional annual relief
- Combined, an average income earner could receive up to $2,800 in annual tax relief over time
For investors and wealth structures
- Major changes to capital gains tax and negative gearing
- New 30% minimum tax on discretionary trusts
- These measures are expected to raise significant revenue and reshape investment decisions
Cost of living support
Relief is meaningful but gradual rather than immediate.
- Cheaper medicines with PBS co-payments reduced to $25 and concessional rates frozen
- Medicare levy thresholds increased to support lower income households
- Ongoing tax relief aimed at offsetting inflation pressures
Housing and property
A structural shift that may impact investors, developers and first home buyers differently.
- Tax changes aimed at improving housing affordability
- Incentives favour new housing supply over existing property investment
- Government expects increased access to home ownership over time
Business and investment
Positive for small to medium businesses, with a focus on long-term investment.
- Instant asset write-off made permanent for small business
- Continued support for innovation and R&D investment
- Measures to improve productivity and encourage business growth
Health, energy and infrastructure
- Increased funding for healthcare and cheaper medicines
- Investment in fuel security and energy resilience
- Ongoing infrastructure and clean energy spending
A reform-focused budget, not a surplus budget
- Budget remains in deficit in the medium term
- Government is relying on:
- tax reforms
- spending restraint in areas like the NDIS
- economic growth over time
What this means for:
- Individuals: Expect modest but increasing tax relief
- Investors: Review property and trust structures
- Business owners: Opportunities through asset write-offs and investment incentives
- All clients: Planning is more important than ever as structural tax changes take effect
This is not a “do nothing” Budget. Many measures are delayed so now is the time to review structures, asset holding strategies and business plans before the changes apply.
Full Federal Budget reports are available to download:
Federal Budget 2026/27 Summary Report
Tax and Super Summary Report
