The government handed down its Federal Budget for 2026-27 on Tuesday 12 May 2026. As expected, it proposes a series of significant tax reforms, with changes to capital gains tax and negative gearing being among the most impactful.

Some of the key proposals include:

• Replacement of 50% CGT discount with inflation-adjusted indexation from 1 July 2027.

• The introduction of a minimum 30% tax rate on realised capital gains accruing from 1 July 2027.

• Negative gearing restricted to new-build properties.

• Minimum 30% tax on discretionary trusts from 1 July 2028.

Importantly, no major tax changes to superannuation were announced. However, careful consideration will still be required, as the broader tax environment may influence long-term strategies over time. It is also worth keeping in mind that the final legislation may differ from the measures originally proposed.