On Tuesday 12 May, Treasurer Jim Chalmers handed down the 2026-27 Federal Budget — and there’s plenty in it that will affect how Australians earn, invest, save and retire.
The Government has called this its most ambitious budget yet, with a clear focus on housing affordability for younger Australians. But the proposed changes reach much further than property. There are reforms to negative gearing, the capital gains tax (CGT) discount, family trust distributions, the instant asset write-off, FBT on electric cars and more — plus tax cuts and a new offset for working Australians.
Whether you’re a young family just starting out, an established investor, planning your retirement, or already enjoying it, this budget has something in it for you to think about. That’s why we’ve pulled together a plain-English summary of the key measures, so you can quickly see what’s changing, when it kicks in, and where it might affect your plans.
What’s inside our 2026-27 Federal Budget Summary
Our summary breaks the budget down into the areas that matter most to our clients:
- Individuals and families – the new $250 Working Australians Tax Offset, the $1,000 instant tax deduction for workers, legislated income tax cuts, and higher Medicare levy thresholds.
- Investors – the significant changes to negative gearing for residential property, the replacement of the 50% CGT discount with an indexation system plus a 30% minimum tax rate, and a new minimum tax on family trust distributions.
- Business and employers – the permanent $20,000 instant asset write-off, the scaling back of the FBT exemption for electric cars, loss carry back, refunds for small start-ups, and changes to PAYG instalments and the R&D Tax Incentive.
- The economy – the outlook for growth, inflation, wages, employment, and where the deficit and debt are tracking from here.
We’ve also flagged a few important headline items — like extra funding for Medicare Urgent Care Clinics, new medicines added to the PBS, NDIS reforms, and a $14.8 billion package to strengthen fuel supply alongside a three-month extension to the reduced fuel excise from 1 April 2026.
The big takeaways
If you only have a minute, here are the changes most likely to come up in our conversations over the coming months:
- Negative gearing changes from 1 July 2027. Losses from established residential properties acquired after 7:30pm (AEST) on 12 May 2026 will only be deductible against rental income or capital gains from residential properties. Existing properties owned before 12 May 2026 are exempt.
- CGT changes from 1 July 2027. The 50% CGT discount and the pre-CGT exemption will be replaced by an indexation system plus a minimum 30% tax rate on capital gains. Transitional rules will protect gains that accrued before 1 July 2027.
- Minimum 30% tax on family trust distributions from 1 July 2028. A significant change for anyone using a discretionary trust for investment or business purposes.
- Tax cuts and a new working offset. The 16% tax rate on income between $18,201 and $45,000 drops to 15% from 1 July 2026, then 14% from 1 July 2027, and a new $250 Working Australians Tax Offset starts in 2027-28.
- Superannuation left alone. After several years of tinkering, the super system hasn’t been touched in this budget which is a welcome bit of stability for retirees and those approaching retirement.
It’s important to remember that most of these measures are still just announcements. Legislation needs to pass before any of it becomes law, and the detail can shift along the way. We’ll keep you updated as things move.
Download the full summary
To make it easy to digest, we’ve put together a downloadable PDF summary of the 2026-27 Federal Budget covering all of the measures above in more detail, with start dates and the key resources to follow as legislation progresses.
📄 Download our 2026–27 Federal Budget Summary (PDF)
Inside you’ll find a structured breakdown of every measure that might apply to you, along with a brief look at the economic outlook for the year ahead.
How we can help
Budgets always raise the same question for our clients: “What does this actually mean for me?” The answer depends on your situation. Your income, your investments, your structures, and what you’re trying to achieve over the next five, ten or twenty years.
If you’re an investor with negatively geared property, hold assets that would benefit from the current CGT discount, distribute income through a family trust, or run a small business, the proposed changes are well worth a conversation. The same goes if you’re approaching retirement and want to make sure your plan still stacks up.
The Insight Wealth Planning team is here to help you understand how the budget and any enacted measures might impact you, and to make sure you’re well placed to capitalise on opportunities or minimise risk.
Give us a call on (02) 4941 1888 or email contact@insightadvice.com.au to arrange a chat — and in the meantime, grab your copy of the summary above.
The information in this article is general in nature and has been prepared without consideration of your individual objectives, financial situation, or needs. The measures discussed are announcements only and are subject to the passage of legislation. Before making any decisions, we recommend seeking advice from a qualified financial adviser.