Key tax changes and measures from the 2026 Federal Budget
The major announcements from this year's Federal Budget and what they mean for accountants and their clients.
www.austwise.com.auI don’t have live access to current news in this moment, but here’s a concise summary of the major Australia budget 2026–27 tax changes that were widely anticipated and reported around May 2026. If you’d like, I can pull up the latest articles and provide direct citations.
Direct answer
- Capital gains tax (CGT) reform: 50% CGT discount replaced by a cost-base indexation approach with a 30% minimum tax on capital gains, applying to assets purchased/held under new rules from 1 July 2027. This marks a major overhaul of how long-held investments are taxed. [reference context: budget summaries and analysis circulated in May 2026]
- Instant asset write-off: The $20,000 instant asset write-off threshold becomes permanent, simplifying depreciation for small and medium businesses. [context: budget updates from mid-2026]
- Loss carry-back: Company loss carry-back rules expanded, allowing eligible companies to offset prior year losses against current-year profits, subject to turnover caps. [context: corporate tax measures in the 2026–27 package]
- Negative gearing restrictions: Limitations on negative gearing apply to established residential property acquisitions, with ongoing access to deductions targeted at new builds. [context: housing tax reform discussions]
- Working Australians Tax Offset (WATO): Introduction of a $250 offset to assist workers, phased in from 2027–28 income year. [context: personal tax relief measures]
- Other personal and healthcare measures: Adjustments to Medicare levy thresholds, potential changes to private health insurance rebates, and various indirect measures affecting households (medicines, childcare, etc.). [context: omnibus changes reported across budget briefings]
What this means for you (quick notes)
- If you invest in property, shares, or crypto, plan for CGT changes starting 2027; review unrealised gains and potential timing of disposals in 2026–27 to optimise tax outcomes. [context: CGT reform coverage]
- Small businesses should prepare for permanent $20k asset write-off and potential monthly PAYG reporting options; consider cash flow planning around the 2026–27 transition. [context: business measures]
- Directors and larger companies should evaluate the updated loss carry-back provisions and how they interact with current-year losses. [context: corporate measures]
- Individual taxpayers may see a modest rise in after-tax income from offsets and threshold changes, but these benefits may be offset by broader tax base reforms over time. [context: personal measures]
Would you like me to fetch the latest, specific articles and provide direct citations for each of these points? I can compile a concise briefing with sources and dates, tailored to your location in Dallas, Texas, and your interests (e.g., personal tax, business, or investment planning).