Most Common Budget-Related Accounting Questions – Federal Budget 2026–27

Below is a simplified overview of some of the most commonly Googled accounting and tax questions following the Australian Federal Budget 2026–27 announcements. These measures are currently proposed reforms and legislation may still change before implementation.

Is negative gearing being abolished?

Not entirely. Under the proposed reforms, negative gearing would generally be limited to newly built residential properties purchased after Budget night 2026. Existing investments and many current owners are expected to be grandfathered under the existing rules.

What are the new CGT rules?

The Government has proposed replacing the current 50% Capital Gains Tax (CGT) discount with an inflation-indexed model from 1 July 2027. A minimum 30% tax on capital gains has also been proposed for certain taxpayers and structures.

How will the budget affect investment properties?

The proposed changes may reduce tax benefits for investors purchasing established residential properties after the reform date. Investors may increasingly shift towards new builds due to the continued availability of concessions.

Should I buy property before July 2027?

This depends on your financial position, borrowing capacity, long-term goals, and the final legislation. Some investors are considering purchasing before the proposed changes commence to preserve existing tax treatment.

Will trusts still be worth it?

Trusts may still provide asset protection, estate planning flexibility, and business structuring benefits. However, the proposed tax reforms could reduce some tax minimisation advantages previously associated with discretionary trusts.

What happens to family trusts now?

The Budget proposed a 30% minimum tax on certain discretionary trust income from 1 July 2028. Exact details and exemptions are still being clarified, and legislation has not yet passed.

Is there a new ‘death tax’?

No formal death tax has been introduced. However, some commentators have referred to the proposed trust taxation changes as a ‘death tax’ because of potential impacts on testamentary trusts and inherited wealth structures.

How does the new 30% trust tax work?

The proposal would apply a minimum 30% tax rate to some discretionary trust income, generally paid by the trustee. The Government has indicated some trusts may be excluded, including certain fixed and charitable trusts.

Will property investors pay more tax?

Potentially yes, particularly investors purchasing established residential properties after the proposed reform dates. Reduced negative gearing access and CGT discount changes may increase overall tax payable on investment returns.

Sources & References

• Australian Federal Budget – Tax Reform: https://budget.gov.au/content/04-tax-reform.htm
• Budget Explainer – Negative Gearing & CGT: https://budget.gov.au/content/factsheets/download/tax-explainers-negative-gearing-capital-gains-tax.pdf
• ABC News Budget Coverage: https://www.abc.net.au/news/2026-05-12/budget-2026-government-breaks-promise-negative-gearing-cgt/106669860

Disclaimer: This document contains general information only and does not constitute financial or tax advice. Tax outcomes depend on individual circumstances and proposed reforms may change prior to legislation.