Federal Budget 2026 - 2027

On Tuesday 12 May 2026, the Treasurer Jim Chalmers handed down the 2026-2027 Federal Budget, framing some of the more significant announcements as part of a broader plan to help young Australians access the property market.

While acknowledging that the key to housing affordability is supply, the Government clearly sees changes to negative gearing and the capital gains tax (CGT) discount as being important pieces in the housing affordability puzzle.

A NEW TAX OFFSET

Start date: 1 July 2027

The Government will provide a $250 ‘Working Australians Tax Offset’ from the 2027 – 2028 income year.

LIMITS ON NEGATIVE GEARING

Start date: 1 July 2027

The term ‘negative gearing’ refers to the situation where a rental property owner claims deductions for expenses associated with holding the property that exceed the rental income that is received in the relevant income year.

INSTANT ASSET WRITE-OFF

Start date: 1 July 2026

The Government has announced that the cost threshold for the purpose of applying the instant asset write-off for small business entities will be permanently increased to $20,000 from 1 July 2026.