The Federal Government’s proposed 2026–27 Budget reforms introduce some of the most significant tax and structural changes seen in recent years. The measures are expected to impact individuals, investors, business owners, family groups, and small-to-medium enterprises across Australia.
The proposed reforms focus on areas including:
- Capital gains tax (CGT)
- Negative gearing
- Discretionary trusts
- Business tax relief
- Research and development incentives
- Employee tax deductions
- Electric vehicle fringe benefits tax concessions
While many of these measures are still subject to legislation, the announcements provide an important opportunity for taxpayers to begin reviewing existing structures and planning strategies ahead of the proposed commencement dates.
Key initiatives include:
Housing
- Changes to the tax system to reduce existing concessions for property investors.
- Extending the temporary ban on foreign purchases of established dwellings until 30 June 2029.
- An investment of $2 billion to help local governments and state utilities build infrastructure to support new housing.
Health
- Medicare Urgent Care Clinics will receive additional funding to ease the pressure on GPs and hospitals.
- Funds are allocated to list new medicines on the Pharmaceutical Benefits Scheme, including treatments for cystic fibrosis, kidney disease and various cancers.
- An additional $25 billion in funding for public hospitals.
- Reforms to the NDIS are expected to save $37.8 billion over the next four years. The scheme will be more focused on those with permanent and severe disabilities.
- Private health insurance subsidies for Australians over 65 are being cut, with savings being used to fund aged care and dementia care units.
Defence
- The defence budget will be increased by $53 billion over the next ten years.
Fuel
- A $14.8 billion package will be used to help Australia strengthen fuel supply.
- A reduction in the fuel excise and heavy vehicle road user charge will continue to apply for three months from 1 April 2026.
Important: Unless otherwise noted, the measures discussed below are only announcements at this stage. There is no guarantee that they will be implemented as per the Government’s announcements (or at all). We will keep you up to date with key developments as things progress.
To help you make sense of the key announcements, we’ve put together a comprehensive Budget Guide covering the major tax changes, sector‑by‑sector summaries, and an at‑a‑glance overview of the 2026–27 Federal Budget.