The 2026-27 Budget Snapshot
The 2026-27 Budget has been delivered during a time of economic uncertainty, and the Government has outlined its focus on resilience and reform, framed around savings initiatives, productivity, investment and tax reform. The Government aims to achieve lower deficits and reduce national debt to help alleviate inflationary pressures. Through a controversial move, the Government has made changes to negative gearing and Capital Gains Tax (CGT).
2026-27 Budget Snapshot
Tax and Wages
- Replacing the 50% Capital Gains Tax (CGT) discount with an inflation-based indexation and introducing a minimum 30% tax rate on real capital gains from 1 July
2027. This will apply to gains arising after 1 July 2027.
- The 50% Capital Gains Tax discount will remain for investors purchasing new builds.
- Negative gearing will change to new builds from 1 July 2027, and the existing properties held before Budget night will remain unchanged. Established properties
purchased after Budget night can still deduct losses against future residential property income, just not against salary or wages.
- From 1 July 2028, a minimum tax of 30% will be introduced on discretionary trusts, with some exceptions.
- $250 tax offset for working Australian taxpayers
- $1,000 instant tax deduction for Australian workers.
- The loss carry back will be reintroduced for small businesses.
Fuel security
- Over $10 billion towards securing fuel and fertiliser supplies.
- Securing an extra 1 billion litres of petrol and diesel.
- Expanding the Minimum Stockholding Obligation by an additional ten days for petrol, diesel and jet fuel.
- The measures aimed at fuel security are intended to increase Australia's diesel and jet fuel reserves to 50 days.
- Committing $10 million towards feasibility studies into expanding domestic refining capacity.
Housing
- Investing $2 billion in the new Local Infrastructure Fund to assist local governments and state utilities in building essential infrastructure to support new housing.
- Extending the ban on foreign buyers purchasing established homes until mid-2029.
- $59.4 million to assist Community Housing Providers in offering social housing for over 4,000 individuals aged 16-24, aimed at reducing the risk of or preventing
homelessness.
- An additional $100 million from the Housing Australia Future Fund to improve housing for First Nations Australians in remote communities.
Infrastructure
- Up to $1 billion investment towards the transition of the Boyne Island Aluminium Smelter to renewable energy.
- $8.6 billion towards new and ongoing nationally significant road and rail projects.
- $841.7 million towards building community infrastructure across Australia, including parks, sports centres and cultural facilities.
Health
- Implementing NDIS reforms project to save $37.8 billion over the next four years.
- $25 billion in additional funding towards state and territory hospitals over five years.
- Reducing the cost of medicines under the Pharmaceutical Benefits Scheme (PBS).
- $5.9 billion is allocated to make medicines more affordable by adding new medications to the PBS list.
- Investing $3.7 billion to deliver additional beds and better care for older Australians.
- $1.8 billion to make Medicare Urgent Care Clinics a permanent part of Australia's health system.
- Allocating $449.3 million to include the respiratory syncytial virus (RSV) vaccine Arexvy® for eligible older Australians in the National Immunisation Program,
protecting against respiratory infections caused by RSV.
Other
- $53 billion invested over the next ten years in defence capabilities.
- $12 billion towards establishing the Henderson Defence Precinct, a world-class centre for naval shipbuilding in Western Australia.
- Funding towards natural disaster relief is expected to increase by $2.5 billion.