The 2026–27 Federal Budget has introduced major changes to property, tax and lending that could impact homeowners, investors and business owners. From updates to negative gearing and capital gains tax to new opportunities for businesses and investors, now is the time to review your loan structure, borrowing strategy and future plans. With so much changing, having the right finance strategy in place is more important than ever.
The 2026-27 Federal Budget has introduced some of the most significant tax and property policy changes Australia has seen in years. Between proposed changes to negative gearing, capital gains tax (CGT), discretionary trusts and housing policy, many borrowers, investors and business owners are now asking the same question: what should I be reviewing now?
Here is what you need to know, and what to consider next.
1. Negative gearing. From 1 July 2027, negative gearing on established residential properties will be restricted to new builds only. Any property held before 7:30 pm AEST on 12 May 2026 is protected under the current rules, meaning existing investors will not be affected by the changes for as long as they continue to hold those properties.
2. Capital gains tax. The 50% CGT discount will be replaced with a cost base indexation model, with a 30% minimum tax on real capital gains. Transitional rules mean only gains accruing after 1 July 2027 are affected.
3. Discretionary trusts. A 30% minimum tax on discretionary trusts will apply from 1 July 2028, with rollover relief available for those looking to restructure.
4. Tax relief for businesses and individuals. The $20,000 instant asset write-off has been made permanent, and a new $250 Working Australians Tax Offset will apply from 2027–28.
For homeowners, the key issue remains affordability and borrowing capacity. While the Budget included tax relief and housing support measures, lenders continue to assess higher living costs, elevated interest rates and household spending pressures carefully.
Homeowners should consider reviewing their interest rate, refinancing opportunities, debt structure and how future rate movements may impact repayments.
FAQ: Should I refinance now?
In many cases, reviewing your home loan structure now may create savings or flexibility before any future lender tightening. A finance broker can model different scenarios based on your current position.
The changes to negative gearing and capital gains tax could significantly reshape property investor strategies from 2027 onwards. New builds are exempt from the negative gearing changes, and investors buying a newly built property can choose between the existing 50% CGT discount or the new indexation model.
For property investors, the priority now is reviewing your portfolio structures, borrowing strategies and refinancing opportunities before the changes take effect.
FAQ: When do the CGT changes take effect and how does the transition work?
From 1 July 2027, the 50% CGT discount is replaced by cost base indexation with a 30% minimum tax. For properties already owned, only gains accruing after 1 July 2027 are affected, making a valuation at that date an important planning step.
FAQ: I bought my investment property in 2025. Am I affected?
If you settled before 12 May 2026, your negative gearing entitlements are protected under the current rules.
FAQ: Are new builds still worth considering as an investment?
Yes, new builds retain favourable treatment under both the negative gearing and CGT changes, and investors can choose whichever tax method produces the better outcome.
The Budget included several measures designed to support business investment and cash flow, including making the $20,000 instant asset write-off permanent. It also expanded loss carry-back provisions, and added new venture capital incentives and a $250 Working Australians Tax Offset from 2027–28.
Business owners operating through discretionary trusts should take note of the incoming 30% minimum tax.
FAQ: I'm a business owner with a discretionary trust. What should I be doing now?
Start by modelling the impact of the 30% minimum tax on your current structure. A three-year rollover relief window beginning in 2027 gives you time to restructure, but early planning will preserve more options. Speak to your accountant and finance broker together.
SMSF borrowing rules remain strict, and any structural changes should be reviewed with both your adviser and your finance broker.
FAQ: Can my SMSF still negatively gear a property?
Yes, SMSFs are excluded from the negative gearing restrictions, so the current rules continue to apply.
FAQ: Should I consider buying property through my SMSF now?
It depends on your fund's balance, borrowing capacity and long-term retirement strategy. Speak to your finance broker and financial adviser to assess whether it suits your circumstances.
Periods of policy change often create opportunities for clients who act early. This may be the right time to review:
Refinancing and restructuring. With higher interest rates and lender changes, reviewing your existing loans could uncover new rates, structures or consolidation opportunities that reduce pressure on cash flow.
Property acquisition timing and asset selection. New builds now carry tax advantages over established properties. If a purchase is on your horizon, the type and timing of what you buy matters more than ever.
Commercial and residential lending structures. Whether you hold property personally, in a company, trust or SMSF, the Budget changes may affect which structure is most efficient going forward. A lending review should consider both your current position and future plans.
Business growth funding and equity access. Between the permanent asset write-off and equity in existing assets, there may be more capacity to fund growth than you currently think.
Rate movement preparedness. Further RBA rate rises remain possible in 2026. Stress-testing your current commitments against a higher rate environment is a valuable exercise.
At 3LANE Finance, we work closely with homeowners, investors and business owners to help navigate changing lending conditions and evolving market opportunities – across residential finance, commercial finance, asset finance and property development finance.
The market is changing quickly, and proactive planning matters more than ever.
Book a complimentary strategic finance review with 3LANE Finance.
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