Translated out of government-speak. Big changes for property investors, family trusts, small business and almost every taxpayer in between — here's what it actually means for you.
Housing affordability sits front and centre, but health, defence and fuel all draw significant headlines too.
Changes to the tax system reduce existing concessions for property investors. The temporary ban on foreign purchases of established dwellings is extended to 30 June 2029, plus a $2 billion investment to help local governments and state utilities build infrastructure for new housing.
More Medicare Urgent Care Clinic funding, new PBS listings (cystic fibrosis, kidney disease, several cancers), $25B extra for public hospitals, and NDIS reforms expected to save $37.8B over four years. Private health insurance subsidies for over-65s are being cut and redirected to aged and dementia care.
The defence budget will increase by $53 billion over the next ten years.
A $14.8 billion package to strengthen Australia's fuel supply, plus a three-month reduction to the fuel excise and heavy vehicle road user charge from 1 April 2026.
Tax cuts are landing, a new work-income offset arrives, a $1,000 standard deduction means fewer receipts in the shoebox, and Medicare levy thresholds lift so more people on lower incomes stay out of it.
The Government will introduce a $250 'Working Australians Tax Offset' from the 2027–28 income year. This is a permanent addition to the tax system aimed at people who earn income from work — employees receiving salary or wages, and sole traders running a business. In practical terms, the offset effectively increases the tax-free threshold for work income by nearly $1,800 — bringing it to $19,985 (or up to $24,985 if you're also eligible for the Low Income Tax Offset). It's not huge, but it's something.
Filter the proposed dates of effect. Most measures are announcements only — we'll keep you posted as legislation lands.
Low-income thresholds for singles, families, seniors and pensioners increase by 2.9%.
Global Anti-Base Erosion Rules (GloBE) Side-by-Side Package implementation.
Three-month temporary reduction to fuel excise and heavy vehicle road user charge.
Helpline and mental health coaching program extended from 2025–26 to 30 Jun 2027.
Standard work-related expense deduction begins for Australian tax residents earning income from work.
Permanent extension for small business with turnover up to $10 million.
Companies with aggregated annual global turnover under $1B can carry back losses.
16% bracket on $18,201–$45,000 drops to 15% (legislated).
Funding to modernise prevention and detection of fraud in tax and super systems.
Removal of age-based uplift of the Private Health Insurance Rebate.
Negative gearing for residential property limited to new builds for newly acquired property.
50% CGT discount replaced by cost base indexation; 30% minimum tax on net capital gains.
Permanent offset for income from work, from the 2027–28 income year.
Small and medium businesses can opt in to monthly PAYG instalments with dynamic ATO calc.
3-year rollover relief to restructure out of discretionary trusts into a company or fixed trust.
Scope of VCLP and ESVCLP incentives broadened.
Trustees of discretionary trusts pay minimum 30% tax on trust taxable income.
Start-ups under $10M turnover can convert first-two-year losses into a refundable offset.
Higher offset for core R&D; supporting R&D excluded; min expenditure rises to $50,000.
Permanent 25% FBT discount for all EVs valued up to and including the fuel-efficient LCT threshold.
Ban on foreign purchasers of established dwellings extended to 30 June 2029.
Transitional CGT arrangements for certain renewable energy infrastructure assets, through 30 Jun 2030.
Global tensions are pushing inflation up and growth down. These are the forecasts the Treasurer is working with.
Down from 2.25% in 25–26 as higher inflation squeezes real incomes; recovers to 2.25% in 27–28.
Forecast through Jun 2026; declining to 2.5% by Jun 2027 (assuming oil prices ease).
Forecast at Jun 2026; rises gradually to 4.5% by Jun 2027.
WPI through Jun 2026, rising to 3.5% through Jun 2027 and 2028.
$2.8B better than the mid-year forecast. Balance projected by 2034–35; surplus 0.8% of GDP by 2036–37.
35.6% of GDP. Interest on AGS estimated at $27.7B in 26–27, growing to $40.4B by 29–30.
Whether it's reviewing how your investment property is structured, thinking through trust distributions, or taking advantage of the instant asset write-off — there are opportunities and risks here. That's literally what we're here for.
