Negative gearing. Capital gains. Family trusts. Superannuation. The government has moved on all of them — and for investors, business owners, and families, the clock is already running.
The 2026 Federal Budget landed this week, and honestly — our phones haven’t stopped since.
In the last 48 hours alone, we’ve had investors asking whether to sell their rental properties, business owners worried about trust structures they’ve held for a decade, and first-home buyers wondering if this is finally their moment.
All of them are asking the same underlying question: does this actually change my financial future?
The short answer is yes. But the longer answer — which is the one worth reading — is more nuanced than most of the headlines are letting on.
So let’s cut through it properly. No jargon. No panic. Just a clear breakdown of what’s proposed, who it actually affects, and what smart Australians should be thinking about right now.
Before we dive into the big changes, here’s something that’s being buried under the noise:
These are proposals. Not law.
The budget announcements still need to pass through Parliament. That process takes time. Some measures may pass exactly as announced. Some may be amended. A few may not pass at all.
We’ve already seen clients considering rushed decisions — selling properties, winding up trusts, restructuring businesses — based on headlines rather than confirmed legislation.
That’s rarely the right move.
The people who come out of periods like this in the best position are usually the ones who reviewed their situation early, got clear on the numbers, and then made deliberate decisions. Not the ones who reacted at midnight after reading a news alert.
With that said — here’s what you actually need to know.
Key Reminder
Budget proposals are not legislation. But “not law yet” doesn’t mean “ignore it.” The direction is now very clear, the proposed start dates are specific, and preparation time is genuinely limited. The people who benefit most from tax law changes are almost always the ones who saw them coming.
Most coverage has focused on who loses. But there are genuine winners here — and some of them may surprise you, even if you consider yourself primarily an investor.
✓ Winner
Reduced investor demand for established properties could ease competition at the entry level. Over time, this may genuinely improve affordability in markets where investors have dominated auctions.
✓ Winner
Investors purchasing new builds retain full negative gearing benefits. This explicitly channels investment capital toward housing supply — developers, builders, and off-the-plan buyers stand to benefit.
→ Protected
Grandfathering protections mean current properties keep their existing tax treatment. You’re not facing an overnight hit — but future acquisitions are a different story entirely.
✓ Winner
A proposed $250 Working Australians Tax Offset and $1,000 instant tax deduction will put real money back in everyday workers’ pockets. Not transformational, but meaningful.
✓ Winner
The $20,000 instant asset write-off becomes permanent. Equipment, vehicles, technology — small businesses can now invest with certainty rather than waiting each year for budget confirmation.
✗ Under pressure
Investors buying established properties, high-income earners relying on CGT discounts, and family trust structures are all facing meaningful changes. Read on for the full picture.
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This one affects almost everyone who owns an investment asset.
For decades, the rule was simple: hold an asset for more than 12 months and you’d get a 50% discount on Capital Gains Tax when you sold. It’s been one of the most relied-upon strategies in Australian wealth building — used by property investors, share holders, and business owners planning their exits.
The proposed change replaces that 50% discount with two things:
In practical terms, this could significantly increase the tax you pay when you sell a high-growth asset — particularly one you’ve held for many years.
Think about what this means for someone who bought an investment property in Sydney or Melbourne in 2010. The paper gain on that property today might be $600,000 or more. Under the current rules, they could have planned their sale carefully to minimise the tax hit. Under the proposed rules, the calculation looks very different.
The same logic applies to business owners planning an exit, investors holding a diversified share portfolio, or families who’ve accumulated assets through a trust structure.
If your long-term plan assumed the current CGT discount would still be there when you sold — now is the time to model what changes.
This is the change that’s generated the most noise, and it deserves a careful read.
Here’s the key distinction most people are missing:
If you already own investment properties, you’re largely protected. The proposal includes grandfathering, meaning properties you currently hold would generally continue under existing tax rules. Your ability to offset rental losses against your income shouldn’t change for properties you already own.
If you plan to buy established investment properties in the future, the rules are different. From 1 July 2027, investors purchasing existing (established) residential properties would no longer be able to offset rental losses against their salary income.
New builds appear to stay favored. Investors who purchase newly constructed properties would still be able to access negative gearing benefits under the proposal.
What does this mean in practice?
For current investors: your portfolio isn’t about to blow up overnight. But you should be thinking about your medium-term plans — particularly if you were planning to add to your portfolio.
For investors considering new purchases: the maths on established properties changes significantly post-2027. New builds may become a much more attractive investment from a tax perspective.
For first-home buyers: this is arguably the budget’s biggest gift to you. If investor demand for established properties falls, competition at auction — especially in established suburbs — may ease over time. It won’t happen overnight, and it won’t solve affordability on its own. But it’s a genuine shift in the right direction.
If you operate through a discretionary trust — whether for business income, investment income, or both — this proposal is one to watch closely.
The budget proposes a 30% minimum tax on discretionary trust distributions from 1 July 2027 (updated: some reports suggest this has been pushed to 2028 — we’re monitoring the final legislation closely).
The reason trusts have been so effective for Australian families and business owners is income splitting — the ability to distribute income to lower-income family members and reduce the overall tax paid. A proposed 30% minimum tax significantly reduces this advantage, particularly for distributions to family members who would otherwise be in a lower tax bracket.
If your current financial structure relies heavily on trust distributions as a tax planning tool, this is a conversation to have with your adviser sooner rather than later.
Some strategies that may be worth reviewing:
This doesn’t mean trusts become useless — far from it. It means the strategy around them needs to adapt.
There was genuine good news in this budget for small businesses.
The $20,000 instant asset write-off is now being made permanent for eligible small businesses.
If you’ve been holding off on buying a piece of equipment, upgrading your vehicle, investing in technology, or fitting out your premises — this removes the uncertainty about whether the write-off would be extended year to year. It’s a meaningful incentive that allows you to reduce your taxable income in the year you make the investment.
But — and this is important — if you’re a business owner thinking about your exit, the proposed CGT changes directly affect you.
Many business owners have built their wealth with the assumption that when they sell their business, they’ll benefit from the 50% CGT discount. Under the proposed changes, that calculation shifts. The tax on your business sale could be substantially higher than you’d planned for.
For business owners who are 5–15 years from an exit, now is exactly the right time to model what your sale looks like under the proposed rules versus the current ones — and to consider whether your exit timeline needs to move.
Two super changes are now confirmed and on a firm timeline:
Payday Super begins 1 July 2026.
This is already legislated. From July, employers will need to pay superannuation contributions at the same time as wages — not quarterly as many do now.
For most employees, this is good news. It closes a loophole that allowed some employers to delay or underpay super without immediate detection.
For business owners and employers, it means a real cash flow and payroll adjustment. If you pay wages monthly, you’ll need to either shift to weekly or fortnightly payroll cycles, or ensure your monthly run includes the super contribution. Your payroll system may need updating. Your bookkeeper or accountant needs to be across this now — not in September.
The additional tax on super balances above $3 million is legislated.
If your superannuation balance is approaching or has exceeded $3 million, the additional 15% tax on earnings attributable to the excess amount applies. For most Australians this isn’t relevant. But for those with large self-managed super funds or long accumulation periods in defined benefit schemes, the implications are real and worth modelling carefully.
This is the question we get asked most right now.
Some people expect the budget to crash property prices. Others think it’ll have no effect at all.
The honest answer: the biggest impact will likely be felt in established properties that have historically attracted high investor demand — inner-city units in Sydney and Melbourne, for example. If investor appetite for these properties decreases, price growth in those segments may moderate.
But housing prices are driven by multiple forces simultaneously: interest rates, migration levels, construction supply, employment, and lending conditions all play a role. A single budget measure rarely reverses a trend on its own.
Regional markets, new builds, and owner-occupier-dominated areas are likely to behave differently from investor-heavy established markets.
This is why broad predictions — in either direction — should be taken with some skepticism.
Here’s our honest take.
There are a few things worth doing immediately:
If you own investment properties: Understand whether they’d be grandfathered under the proposal. Model what your position looks like if the CGT changes proceed as announced. Don’t sell based on what’s proposed — but do know your numbers.
If you operate a family trust: Have a conversation with your adviser about what a 30% minimum distribution tax means for your current structure. There may be time to adapt, but that time isn’t unlimited.
If you’re a business owner: Run your exit scenario under the proposed CGT rules and compare it to current rules. If the difference is significant, your timeline and planning strategy may need to change.
If you’re an employer: Ensure your payroll process is ready for Payday Super from 1 July 2026. This one is already law.
If you’re a first-home buyer: Watch this space. The proposed changes may not transform affordability overnight, but they do shift the competitive dynamic in your favour over time.
And across the board: don’t make any irreversible financial decisions based on a proposal that still has to pass Parliament. Stay informed. Get proper advice. And act deliberately, not emotionally.
Are the negative gearing and CGT changes already law? No. They are budget proposals and need to pass through Parliament before becoming law.
When are the proposed negative gearing changes due to start? The proposed start date for the negative gearing changes on new purchases is 1 July 2027.
Will my existing investment properties lose their negative gearing benefits? Under the proposal, existing properties are grandfathered. Your current properties would generally keep their existing tax treatment.
What’s actually changing with the CGT discount? The 50% CGT discount would be replaced by inflation indexation, with a minimum 30% tax on real gains, proposed from 1 July 2027.
Is Payday Super already law? Yes. Payday Super begins 1 July 2026 and is already legislated.
Should I wind up my family trust? Not based on a proposal alone. Speak to your adviser first and model the impact on your specific situation before making any structural changes.
Should I sell my investment property before July 2027? Not without proper advice and a clear understanding of your numbers. Rushed sales often cost more than the tax change itself.
Who is most affected by this budget? Investors in established residential property, high-income earners using discretionary trusts, business owners planning an exit, and employers managing payroll.
Budgets like this one come around occasionally — the ones where the underlying direction is shifting, not just the numbers.
This feels like one of those moments. The government is sending a clear signal about how it wants investment incentives to be structured going forward: less towards passive accumulation of existing assets, more towards housing supply and wage earners.
That doesn’t mean the strategies of the past 20 years are worthless tomorrow. It means the strategies of the next 20 years may need to look different.
At Probiz Finance, we’ve been working through these proposals with clients all week — running numbers, reviewing structures, and helping people understand what the real-world impact could be for their specific situation.
If you’d like to do the same — whether you’re a property investor, business owner, trustee, or employer — we’d be glad to sit down with you and work through it properly.
Book a strategy session with the Probiz Finance team today. The earlier you review your position, the more options you’ll have.
Disclaimer: This article is for general informational purposes only and does not constitute financial, tax, or legal advice. The proposals discussed are not yet law. Please consult a qualified financial adviser before making any decisions based on budget announcements.
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