The 2026 Federal Budget could reshape how Australians build wealth through changes to five tax settings that have barely moved in decades: capital gains tax, negative gearing, family trusts, superannuation, and personal income tax. Here's what's being watched, what's likely to change, and what it means for your portfolio.
If the proposed or reported changes proceed broadly as discussed, three themes emerge:
Superannuation becomes relatively more attractive as a long-term wealth structure
Property strategy becomes more selective, particularly for multi-property investors
Trust and entity structures require more active review rather than passive use
In effect, the question shifts from what you invest in, to where that investment is held.
The 50% capital gains tax (CGT) discount has been in place since 1999 and plays a central role in long-term investment planning across property, equities and business assets.
Treasury modelling reportedly includes options to reduce the discount to 33% or 25%, or to return to an inflation-indexed model used prior to 1999. Any of these would represent the most significant change to investment taxation in 27 years.
The 1999 reform changed how long-term investment gains are taxed in Australia, particularly across property and listed markets. Any adjustment of this scale would again shift the way those decisions are made over time. While the precise impact depends on individual circumstances, the direction is clear: after-tax outcomes on realised investment gains would be lower under any of the options currently being considered.
Importantly, the relative position between investment structures also shifts. If superannuation tax settings remain unchanged, it may increase the comparative efficiency of investing within super over investing personally.
How this may play out: superannuation may become relatively more efficient for long-term wealth accumulation.
Negative gearing settings have been broadly unchanged for some time. One proposal under consideration is a cap on deductible losses to a maximum of two investment properties per individual.
Under such a model, deductions associated with a third or subsequent property would be quarantined and only offset against income from that specific asset.
Based on Australian Taxation Office data, around 11% of property investors hold three or more investment properties. This positions the measure as targeted rather than broad-based, focused on portfolio expansion at the upper end.
While most investors would see limited direct impact, the combined effect with potential CGT changes becomes more relevant at the margin, where expansion decisions are made.
The wider question is supply. If investor demand softens at the margin, listings and rents adjust. That is the part of the policy debate that runs longest after the speech ends. For renters and first-home buyers, this is the detail that matters most, as a softer investor market could ease rental pressure and improve property availability.
How this may play out: property remains viable, but expansion strategies become more sensitive to after-tax outcomes and broader market dynamics.
Family trusts remain widely used across business and investment structures as valuable vehicles for asset protection, income distribution and succession planning.
Proposals under consideration include a minimum 30% tax rate on distributions to adult beneficiaries. While detail and exemptions are still to be confirmed, this would represent a meaningful shift in how trusts operate.
The key change is not the existence of trusts, but their effectiveness as income distribution tools.
Income-splitting to lower-income adult beneficiaries, a common feature of many family trusts, becomes less effective under a flat 30% minimum rate.
A shift like that would change the role of trusts. Rather than being used primarily for tax efficiency, they become more focused on governance, ownership and succession planning.
How this may play out: trusts remain important structures, but their role in tax optimisation may become more limited.
Super is the part of the Budget where the headline changes have already been set. Three measures come into effect from 1 July 2026, regardless of what is announced tonight.
From 1 July 2026, Division 296 introduces an additional 15% tax on earnings attributed to total super balances above $3 million, increasing the effective tax rate on earnings above that threshold.
A further tier applies above $10 million, increasing the effective rate further. The tax applies to realised earnings only, not unrealised gains.
The first assessments are expected during the year to 30 June 2028. This means the first tax bills under Division 296 will not arrive until mid-2028, giving impacted members time to plan, while earnings subject to the tax begin accruing from 1 July 2026.
At the same time, contribution caps increase:
Concessional cap rises to $32,500
Non-concessional cap rises to $130,000
Payday super also commences, requiring more frequent super guarantee payments.
Individually, these changes are incremental. Collectively, they reinforce superannuation’s central role in retirement savings while increasing focus on higher-balance accounts.
How this may play out: superannuation continues to be a central wealth structure, with increasing importance in relative tax terms.
Two changes are already legislated:
The marginal tax rate for income between $18,201 and $45,000 reduces to 15% from 1 July 2026, and 14% from 1 July 2027
A one-off tax offset of approximately $200 to $300 is expected for eligible wage and salary earners
This offset is separate from the legislated rate cuts and while it is not likely to provide immediate relief in FY27, it will be a welcome addition come tax return time in 2027.
While modest in isolation, these changes continue a gradual shift in personal tax settings. As personal tax rates ease while superannuation remains concessionally taxed, the relative advantage of voluntary contributions and salary sacrifice remains supported over time.
How this may play out: personal tax changes reinforce existing savings behaviour rather than materially altering it.
If capital gains tax, negative gearing, family trust settings and superannuation remain broadly unchanged, current structures largely remain effective under existing rules.
However, the policy environment suggests ongoing pressure across housing affordability, revenue settings and long-term fiscal sustainability. As a result, it is reasonable to expect continued consideration of reform in at least one of these areas over time.
If no changes are announced, the position remains steady. But waiting for certainty also means less time to respond once changes are confirmed.
The clients who manage this well are typically those who understand their position before any legislation is finalised, rather than after it is announced.
The key consideration is not each measure in isolation, but how they interact:
If capital gains tax settings become less favourable, superannuation may become relatively more attractive.
If negative gearing is constrained, property expansion becomes more selective.
If trust efficiency reduces, structures require more active review.
If personal tax relief remains modest, contribution strategies retain relative appeal.
Over time, this results in a gradual reweighting of where wealth is most efficiently held, rather than a sudden shift in any single area. For many investors and business owners, this shifts the focus away from individual asset decisions toward broader structural positioning.
The Budget give you a great opportunity to review and understand where policy changes would actually flow through your financial position.
Where capital gains exposure sits across assets that may be affected
How property holdings are structured and how sensitive they are to tax settings
How trust structures are being used for income distribution and control
How superannuation fits into your overall wealth mix and long-term positioning
Where most of your taxable income is generated across structures and entities
Interpreting the detail, particularly around thresholds, timing and transitional arrangements
Understanding what requires immediate action versus what can be monitored
Reassessing positions once final design and settings are confirmed
This is where Findex can help.
No single measure represents a complete shift on its own. The impact comes from how changes across capital gains tax, property settings, trusts, superannuation and personal tax interact. The effect is a gradual shift in how wealth is structured, held and passed on rather than immediate disruption.
These changes are incremental, but their impact is cumulative.
Findex specialists will publish a full post-Budget breakdown by Wednesday morning, with detailed sector-specific analysis. The clients who manage the next twelve months well will be those who understand their position across assets, structures and income sources before legislation is finalised.
Speak to a Findex advisor about your position before 30 June. We can help model the impact of these changes on your specific circumstances.
This document contains general information and does not constitute legal or taxation advice. If you need legal or taxation advice, we recommend you speak to a qualified advisor.
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