Australian Federal Budget Summary 2026-27: Key Tax, Housing & Healthcare Changes Explained

The Australian Government’s 2026–27 Budget introduces measures to respond to the global oil shock and an ease on cost-of-living pressures. Key Highlights are:

• Cost of living relief
• Support for businesses
• Housing affordability
• Healthcare investment
• Tax reform and productivity

Key Measures

Fuel & Transport Relief

• A $2.9 billion fuel relief package, Fuel excise will reduce from 52.6 cents to 20.6 cents per litre for 3 months from 1 April 2026
• Heavy vehicle road user charge will reduce to zero during this period
• Aimed at easing fuel costs for households and supporting the transport industry

Support for Small Businesses

• Permanent $20,000 Instant Asset Write-Off for businesses with turnover under $10 million from 1 July 2026
• Loss carry-back tax refunds reintroduced for eligible companies with turnover up to $1 billion
• Eligible businesses can choose to move to monthly PAYG instalments from 1 July 2027

Trust & Investment Tax Changes

• Discretionary trusts to be taxed at a minimum 30% rate from 1 July 2028
• Certain trusts excluded, including:
• Fixed trusts
• Superannuation funds
• Charitable trusts
• Deceased estates
• 3-year rollover relief available to assist business restructures from 1 July 2027

Capital Gains Tax (CGT)

• Current 50% CGT discount to be replaced from 1 July 2027
• Future gains will instead be adjusted for inflation before tax applies
• Minimum 30% tax rate will apply

Property & Negative Gearing Changes

• Negative gearing will only apply to newly built homes from 1 July 2027
• Existing properties owned before Budget night remain unchanged
• New investors purchasing established homes after Budget night will face reduced deductions

Personal Income Tax Relief

• Tax rate for incomes between $18,201 – $45,000 will reduce:
• From 16% to 15% on 1 July 2026
• Then to 14% on 1 July 2027
• New $250 Working Australians Tax Offset from 2027–28

Work-Related Expense Claims

• New instant tax deduction of up to $1,000 without receipts from 2026–27
• Designed to simplify tax claims for employees

Healthcare Investment

• Additional $25 billion for public hospitals over 5 years

As you may note, most of the proposed measures are not expected to take effect immediately, and some will still require parliamentary debate and formal approval before becoming law

Should you wish to discuss any of the above measures in further detail and how they may impact you or your business, please feel free to contact our office.