Big changes, bigger questions. What does this Budget mean for you?
Treasurer Chalmers has used his fifth budget to redraw the tax map, targeting the settings that underpin how Australians invest, plan and build wealth. The centrepiece is the most far-reaching set of changes to Australia’s tax system in more than a quarter of a century, with the Government taking aim at discretionary trusts, the Capital Gains Tax (CGT) discount and negative gearing.
A minimum tax on discretionary trusts, the replacement of the CGT discount with cost base indexation, a minimum tax rate on realised gains, and the restriction of negative gearing represent a generational shift in how wealth, property and investments are taxed. These changes sit alongside a permanent instant asset write-off for small businesses, the reintroduction of loss carry back and expanded venture capital incentives, and a retargeted Research and Development Incentive.
Federal Budget Tax Debrief | Wednesday 13 May 2026: 10am AEDT
Facilitated by Todd Want, our Head of Tax along with our panel of experts Charis Liew, Raffi Tenenbaum and Chief Economist Besa Deda as they will unpack the latest developments in tax after the Federal Budget, explore real-world implications and answer your questions.
Todd Want
Partner
Charis Liew
Partner
Raffi Tenenbaum
Partner
Alex Zinzopoulos
Partner
Besa Deda
Chief Economist
5 key take-outs for SMEs
End of the CGT discount
For most assets, cost base indexation replaces the 50% CGT discount from 1 July 2027.
Trust income taxed 30%
From 1 July 2028, a 30% minimum tax applies to most discretionary trust income. Some ability to restructure out of the trust may be available
Negative gearing curbed
Negative gearing for established homes ends from 1 July 2027 for properties purchased after Budget night, limiting the deduction for losses to new builds only.
Loss carry back returns
Loss carry back is reintroduced, allowing eligible companies to offset current year losses against prior year tax and receive a refundable tax offset.
R&D tax incentive
shift
The R&D Tax Incentive will be retargeted from 2028, with higher offsets for core experimental R&D while supporting activities will no longer be eligible.
5 key take-outs for SMEs
End of the CGT discount
For most assets, cost base indexation replaces the 50% CGT discount from 1 July 2027.
Trust income taxed 30%
From 1 July 2028, a 30% minimum tax applies to most discretionary trust income. Some ability to restructure out of the trust may be available.
Negative gearing curbed
Negative gearing for established homes ends from 1 July 2027 for properties purchased after Budget night, limiting the deduction for losses to new builds only.
Loss carry back returns
Loss carry back is reintroduced, allowing eligible companies to offset current year losses against prior year tax and receive a refundable tax offset.
R&D tax incentive shift
The R&D Tax Incentive will be retargeted from 2028, with higher offsets for core experimental R&D while supporting activities will no longer be eligible.
For commentary on the 2026 Federal Budget, please direct your media enquiries to parth.sonecha@williambuck.com
