14/05/2026
The Federal Budget was released this week, and while the headlines can be complex, here are a few key changes that may affect people over time:
1. Property investing: From July 2027, tax benefits like negative gearing will be limited to newly built properties. If you already own investment properties, your current rules stay the same.
2. Selling investments: The way capital gains tax is calculated may change from July 2027. Instead of the current discount, a new system may apply. Some retirees on the Age Pension will be exempt.
3. Superannuation: A higher tax rate has been legislated for super balances above $3 million. This will apply to income and realised gains only – not unrealised gains.
4. Family trusts: From July 2028, income distributed through discretionary trusts may be subject to a minimum 30% tax rate, although some areas (like farming income) are exempt.
These changes are not immediate, and in many cases won’t impact day‑to‑day decisions right now. But they are worth being aware of as part of longer‑term planning.
If you'd like a simple summary with a bit more detail, you can download our PDF here:https://livefinancialplanning.com.au/wp-content/uploads/2026/05/Australian_Federal_Budget_Update_2026_27.pdf
