17/05/2026
Federal Budget 2026–27: a direct hit to intergenerational wealth-building.
This Budget doesn’t just tweak the edges — it reshapes how Australians can build and transfer wealth across generations, particularly through property, capital gains and discretionary trusts.
Here are the biggest changes 👇
🏠 Property (negative gearing)
Negative gearing restricted to new residential builds from 1 July 2027, with existing holdings grandfathered if held before 7:30pm (AEST) 12 May 2026.
This materially changes long‑term portfolio strategy and the “buy‑and‑hold” wealth pathway many families have relied on.
📈 Capital Gains Tax
The 50% CGT discount is replaced from 1 July 2027 with inflation‑indexed cost base and a minimum 30% tax rate on real capital gains.
Translation: after‑tax growth matters more, and CGT outcomes tighten for many investors and families building wealth through appreciating assets.
🛡 Discretionary trusts
A 30% minimum tax rate on discretionary trusts from 1 July 2028 (trustee level).
This is a major shift for families using trusts for income planning and longer‑term wealth structuring.
🏪 Small business (cash flow & investment)
The $20,000 instant asset write‑off is made permanent for eligible small businesses.
Loss carry‑back returns, enabling eligible businesses to offset current losses against prior years’ tax paid and potentially generate refunds — a practical cash‑flow lever during investment cycles or tougher years.
👷 Payday Super
Payday Super begins 1 July 2026 (super paid with wages, not quarterly).
⚠️ Bottom line If your long‑term plan relies on property + trusts + capital growth, this Budget compresses the traditional intergenerational wealth “playbook”. The time to review structures is well before 1 July 2027.
🔗 Official Budget hub: Budget.gov.au
Australian Federal Budget, 2026-27
