Federal Budget 2026/27

Federal Budget Overview 26/27

The 2026–27 Federal Budget, delivered by Treasurer Jim Chalmers on the evening of 12 May 2026, is one of the most significant overhauls of the Australian tax system in nearly three decades. In a single Budget, the Government has made changes to capital gains tax, negative gearing, trust distributions, superannuation, electric vehicles, research and development, and a range of cost-of-living measures. Almost every one of our clients will be affected in some way.

We have prepared this summary to explain the key measures in plain language and to highlight what they mean for you. Many of these changes are still subject to draft legislation, and a number of details are not yet fully confirmed — we have tried to reflect that honestly throughout.

What is clear is that these changes are significant, broad, and for many clients will require a review of existing arrangements. We encourage you to read through the summaries below and to contact us to discuss anything that may be relevant to your situation.

Budget FAQs Budget FAQs  Budget Overview Budget Overview

What Should You Do Now?

The measures announced in this Budget are far-reaching, and the right response will be different for every client. Some changes take effect immediately, some from 1 July 2026, some from 1 July 2027, and others from 1 July 2028. What is clear is that waiting is not a strategy — the sooner you understand how these changes affect your specific situation, the more options will be available to you.

As a starting point, ask yourself:

•        Do you own investment properties — both existing and any you are considering?
•        Do you operate a business through a sole trader structure or a discretionary trust?
•        Are you a beneficiary or trustee of a discretionary trust?
•        Is your superannuation balance approaching or exceeding $3 million?
•        Are you a small business employer with payroll systems to update before 1 July 2026?
•        Has your company paid tax in recent years and is it now experiencing or expecting a loss?
•        Does your business currently claim the R&D Tax Incentive?

None of these issues need to be resolved overnight — but all of them benefit from early advice. We will be reaching out to clients we believe are most directly affected, but please do not wait to hear from us if you have concerns or questions.