Australian Federal Budget 2026–27: reshaping the tax landscape

The Australian Federal Budget 2026-27 introduces some of the most significant tax reforms in recent decades, with wide-ranging implications for individuals, investors, trusts and businesses.

Key measures include major changes to capital gains tax, negative gearing rules, discretionary trust taxation, business tax incentives and individual tax relief measures.

MGI Australasia’s analysis of the Australian Federal Budget 2026-27 provides a comprehensive overview of the Government’s proposed tax reforms and economic measures. The Budget introduces significant changes affecting individuals, investors, trusts and businesses, including reforms to capital gains tax, negative gearing, discretionary trust taxation and business tax concessions. The report examines the potential impact of these measures and highlights the key considerations for taxpayers and business owners.

Key topics covered

• Capital Gains Tax reforms, including the replacement of the 50% CGT discount with cost base indexation and a minimum tax rate.
• Changes to negative gearing, limiting deductions on residential property losses to eligible new-build properties.
• Introduction of a 30% minimum tax on discretionary trusts.
• New tax benefits for individuals, including the Working Australians Tax Offset and the $1,000 instant tax deduction.
• Updates to personal income tax settings and Medicare levy thresholds.
• Permanent extension of the $20,000 instant asset write-off for eligible small businesses.
• Return of the loss carry-back regime for companies.
• New support measures for start-ups and innovation through enhanced R&D tax incentives.
• Expansion of venture capital tax incentives to encourage investment in growing businesses.
• Changes to fringe benefits tax concessions for electric vehicles.
• Superannuation and pension updates, including the implementation of Division 296 measures.

Download the full report

For a detailed analysis of all budget measures, including eligibility criteria, implementation dates and practical implications for taxpayers and businesses, download the full MGI Australasia Federal Budget 2026-27 report HERE.

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