How the 2026 Budget affects you!

The 2026 Federal Budget has landed—and it’s one of the most significant shake-ups for property and taxation we’ve seen in decades.

If you already own property, are helping adult children into the market, or are considering your next investment move, you’re likely wondering:

“How does this actually affect me?”

From changes to negative gearing and capital gains tax through to support for first home buyers and workers, this budget is designed to reshape the housing landscape—particularly between generations.

Let’s break it down clearly, so you can understand what’s changing and what it could mean for your next financial decision.

Winners in the 2026 Budget

✅ Working Australians

A new $250 annual tax offset is being introduced for over 13 million workers starting from the 2027–28 financial year. [budget.gov.au]

In addition:

• A $1,000 instant tax deduction simplifies claiming work expenses [abc.net.au]

• Combined tax relief could boost take-home income over time [budget.gov.au]

💭 While modest, could this extra cash help support mortgage repayments or savings strategies in your household?

🏡 First Home Buyers

This is where the biggest focus sits.

Key changes include:

• Negative gearing limited to new builds from July 2027 [sbs.com.au]

• Capital gains tax discount replaced with an inflation-linked model [ato.gov.au]

• Measures expected to help around 75,000 Australians into home ownership [abc.net.au]

The intention?

Reduce investor competition and make it easier for owner-occupiers—possibly your children—to enter the market.

💭 Could this create an opportunity for your family to help the next generation into property sooner?

🏗️ Housing Supply & Construction

The government is investing in new housing through:

• Infrastructure support for new developments

• Policies that encourage building new residential stock [savings.com.au]

This aligns with the restriction of investor tax benefits on existing homes.

💭 Does this shift your strategy towards new builds rather than established properties?

💼 Small Businesses

If you run a business, there’s some upside:

• $20,000 instant asset write-off made permanent [thenewdaily.com.au]

• Loss carry-back provisions improving cash flow [budget.gov.au]

💭 Could these changes support business growth—or improve borrowing capacity?

Who May Feel the Impact?

⚠️ Property Investors

This is the biggest area of change.

From July 2027:

• Negative gearing restricted to new builds only [sbs.com.au]

• Rental losses on new purchases can’t offset salary income (for established homes) [budget.gov.au]

• 50% CGT discount replaced with indexation + minimum 30% tax [ato.gov.au]

Existing properties remain largely unaffected (for now), but future investment strategy may shift significantly.

💭 Does your current portfolio still align with these new rules—or is it time to review?

💰 Wealth Structures & Trusts

• A minimum 30% tax on discretionary trusts is proposed [thenewdaily.com.au]

This may affect families using income-splitting strategies.

💭 Have you reviewed how your family structure is set up for tax efficiency?

🏘️ Renters (Short-Term Impact)

There may be:

• Small increases in rents in the near term due to reduced investor activity [abc.net.au]

However, increased supply is expected to ease pressure longer term.

What Does This Mean for You?

This budget isn’t just about winners and losers—it’s about rebalancing the property market.

For homeowners and investors, the key considerations are:

✔️ Review your strategy

• Are you relying on tax benefits that may change?

• Would new builds now make more sense?

✔️ Think generationally

• Could these changes help your children enter the market?

• Is it time to restructure ownership or lending strategies?

✔️ Plan early

• Many changes don’t begin until 2027, but planning now gives you options.

If you are concerned about how the 2026 budget affects you

It has been signaled clearly that the rules around property investing are changing.

But with change comes opportunity—if you understand how to adapt.

Whether you're:

• Reviewing your investment portfolio

• Helping your children buy their first home

• Considering your next purchase

Getting tailored advice about how the 2026 budget affects you is more important than ever.

If you’d like to understand how these changes apply specifically to your situation,

reach out to the team, we are here to help.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.