2026 Budget Tax Shift - Property Changes Capital Gains & Negative Gearing - Trust Tax Changes

Описание: The 2026 federal budget marks a major shift in Labor’s tax policy, with the government abandoning its earlier pledge to leave negative gearing and capital gains tax untouched. Under the new rules, investors will only be able to negatively gear newly constructed properties, ending decades of deductions on established homes. Treasury modelling suggests this will gradually push tens of thousands of investor‑held properties into the hands of first‑home buyers, though it also forecasts a noticeable dip in new housing supply.

Capital gains tax settings will be reshaped from mid‑2027. The long‑standing 50% discount will be scrapped in favour of taxing only the portion of a gain that exceeds inflation, combined with a floor rate of 30% to prevent high‑income earners from minimising their tax through timing or trust structures. Gains accumulated before the changeover will remain under the old system, while pensioners and welfare recipients will be shielded from the minimum rate. The government argues this creates a fairer, more consistent framework for taxing investment income.

A separate reform targets discretionary family trusts, which will face a minimum 30% tax rate from 2028. Critics warn the combined measures could tighten rental markets and slow construction, but the government insists its broader housing package — including infrastructure funding and restrictions on foreign buyers — will offset those pressures and add tens of thousands of homes over the next four years. Across the decade, the tax package is expected to raise more than $77 billion, even as Labor acknowledges the political fallout from breaking another tax promise.

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