John Jevi dela CruzNew tax rules from the Australian Federal Budget 2026–27 could affect your money. They cover property, trusts, wages, super and ATO checks. However, Parliament still needs to pass legislation. So, treat these measures as proposals for now.
Why these new tax rules matter
These plans are not small updates. They may change how people sell assets, claim rental losses, use trusts and manage super.
They may also affect workers and business owners. Therefore, it makes sense to review your records now. However, do not make major decisions based on headlines alone.
You can follow official updates through the Australian Government Budget website and Treasury.
Proposed new tax rules could affect property, trusts, super, workers and ATO compliance.
New tax rules for property investors
1. CGT may change from 1 July 2027
The Budget plan removes the 50% CGT discount from 1 July 2027. Instead, the plan indexes the cost base for inflation. This means tax would focus more on real gains.
The plan also adds a 30% minimum tax on net capital gains. The rule covers individuals, trusts and partnerships. It does not cover companies.
As a result, investors may need to compare sale outcomes before they act.
2. Grandfathering may split old and new gains
Assets held before 1 July 2027 get partial protection. Gains up to that date keep the old 50% discount. However, later gains move into the new system.
Therefore, records will matter. A clear value trail may help owners split gains more cleanly.
3. Pre-1985 assets may face CGT on future gains
Pre-1985 assets have long sat outside CGT. Under the plan, gains before 1 July 2027 stay exempt. However, gains after that date enter the new CGT system.
That is a major shift for older property, land and business assets. So, owners should review this early.
For current background, see the ATO guide to capital gains tax.
4. Negative gearing may narrow for established homes
From 1 July 2027, the plan limits negative gearing for established homes. Rental losses could only offset other residential property income. You would carry unused losses forward.
This may affect cash flow. For example, investors who rely on wage income relief may need to plan ahead.
Some owners get protection. Properties held before 7:30pm on 12 May 2026 keep the current rules until sale. New builds also keep full negative gearing treatment.
For current rental-property guidance, see the ATO page on rental expenses.
New tax rules for trusts
5. Family trusts may face a 30% minimum tax
From 1 July 2028, the plan adds a 30% minimum tax to taxable income of discretionary trusts. The trustee would pay the tax.
This targets income splitting through family trusts. As a result, trust distribution plans may need a fresh review.
Corporate beneficiaries also need care. The plan says they would not get non-refundable tax credits. This may create a double-tax risk in some structures.
The measure leaves out some trusts. These include widely held trusts, managed investment trusts and super funds.
New tax rules for workers
6. Workers may get tax relief and simpler claims
From 1 July 2027, the plan cuts the tax rate on income between $18,201 and $45,000 from 16% to 15%.
It also adds a Working Australians Tax Offset of up to $250 from July 2027. In addition, workers may claim up to $1,000 in work expenses without receipts from 2026–27.
These changes may cut admin for many workers. However, wait for final law and ATO guidance before you rely on them.
Super and ATO compliance changes
7. High super balances and ATO checks may face more pressure
The Budget plan adds extra tax for high super balances. Members with balances over $3 million face an extra 15% tax. Balances over $10 million face a further 10% tax.
The Budget also adds more than $700 million for ATO compliance and enforcement. This may mean more reviews, more data matching and more follow-up questions.
So, clean records matter. Even if a rule does not affect you directly, weak records can still create stress.
For general background, see the ATO’s superannuation guidance.
What to do before the rules become law
Do not rush. Instead, take a calm review step.
Start with these actions:
- review assets that may face CGT changes
- keep better records for property and investment assets
- check whether rental losses may change after 1 July 2027
- review trust plans before 1 July 2028
- model high-balance super if relevant
- wait for final law before major restructuring
- get advice before you act
The safest path is simple. Plan early, but wait for the final law before big moves.
How HarvestWise can help
These plans may affect people in different ways. A worker, property investor, trust client and high-balance super member will not face the same risks.
HarvestWise can help you review what may apply to you. We can also support tax return preparation, bookkeeping and record organisation.
You can read more updates on our blog or contact us to discuss your situation.
Disclaimer
General information only. Budget announcements are not law until Parliament passes legislation. Tax outcomes depend on your circumstances. Speak to a registered tax professional before making decisions.