Federal Budget 2026-27
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.
The proposals include:
- Replacement of the 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, though advisers will need to carefully consider how the broader tax environment may influence client strategies over time.
FirstTech 2026-27 Federal Budget briefing paper
Our FirstTech team has unpacked the Budget proposals and summarised their analysis, including potential considerations for your clients’ advice strategies, in the FirstTech 2026-27 Federal Budget briefing paper.
FirstTech Federal Budget video summary
In this short video, FirstTech's Craig Day discusses some of the key proposals announced in the 2026-27 Federal Budget.
00:00:01:20 - 00:00:16:18
Unknown
Well, the government has just handed down the federal budget for 2026, 27. And as expected, it included some pretty big tax changes for individuals. However, one of the really key takeaways is no major tax changes for superannuation.
00:00:16:18 - 00:00:37:09
Unknown
So what did the government announce tonight? Well, starting off with capital gains tax, the government has, as expected, announce an end to the 50% individual CGT discount from the 1st to July 2027. In addition, they've announced a minimum 30% tax rate for realized capital gains and also an into pre assets.
00:00:37:09 - 00:00:51:17
Unknown
However, as expected, important transitional provisions will apply for people that have already acquired CGT assets. There will also be exemptions for new housing and as I discussed, these changes will not apply to superannuation funds.
00:00:51:19 - 00:01:12:07
Unknown
In addition, the government has announced that negative gearing will be restricted to new build properties and that that will apply for properties purchased from tonight, but will take effect from the 1st of July 2027. Now, as expected there, there will also be transitional provisions with people acquiring their property before tonight being exempt from those changes.
00:01:12:07 - 00:01:40:08
Unknown
Now as always, first tech. We'll be putting together a comprehensive federal budget briefing paper which will step through all of these major announcements. In addition, we'll be holding three live webinars tomorrow one at 9 a.m., one at 12:30 p.m., and one at 2:30 p.m., where you'll have the opportunity to ask any questions you've got. Other than that, we look forward to continuing to support you with these announcements as the government looks to push them through Parliament.
Join one of our three webinars hosted by our FirstTech team on Wednesday, 13 May to get the facts, ask questions and learn the implications for your clients’ advice strategies. CPD hours will be made available to CFS registered advisers after the session.
FirstTech Federal Budget Summary
In this short video, FirstTech's Craig Day discusses some of the key proposals announced in the 2025-26 Federal Budget.
FirstTech Federal Budget Briefing Webinar
View our FirstTech Federal Budget Briefing Webinar held on 26 March 2025
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¹ https://www.abc.net.au/news/2026-03-18/treasurer-pushes-ambitious-budget-as-war-fuels-inflation/106470738
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Information on this webpage is provided by Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 (AIL) and/or Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (CFSIL). It may include general advice but does not consider anyone’s individual objectives, financial situation, needs or tax circumstances. You should read the Financial Services Guide (FSG) before making any recommendations to a client. The FSG can be obtained from www.cfs.com.au or by calling us on 13 18 36. This information is based on current requirements and laws as at the date of publication. Published as at 13/05/2026.