15/05/2026
π Federal Budget 2026β27: What It Means for You
The Federal Budget was announced on 12 May and while there were no major surprises, there are some important changes that could affect your finances, your investments, and your future.
Here's what you need to know:
π° More money in your pocket
The lowest personal tax rate drops from 16% to 15% from July 2026, and down to 14% in 2027. You'll also be able to claim up to $1,000 in work-related expenses without receipts, and from 2027, eligible workers receive a $250 tax offset.
π Property investors, take note
From July 2027, the 50% Capital Gains Tax discount will be replaced with CPI indexation, and losses on new investment properties can no longer be offset against your salary. If you already own investment properties, you're generally protected but if you're planning to invest, now's the time to review your strategy.
π¦ Super: more room to grow your savings
Contribution caps increase in 2027 (concessional cap rises to $32,500) and from July 2026, employers must pay super at the same time as wages, meaning your money gets invested sooner and grows faster.
π Electric Vehicles
FBT exemptions for EVs are being wound back. Full exemption will only apply to vehicles under $75,000 from April 2027. Still worth considering, but the benefits are tightening.
π You don't need to act immediately, but it's worth reviewing your investment strategy, tax planning, and whether you can boost your super contributions before these changes kick in.
Not sure how the Budget affects you? Get in touch and we'll help you work through it.
π (08) 9316 3050
π profusionplanning.com.au
This information is general in nature and does not take into account your personal circumstances. We recommend seeking personalised financial advice.