Working Australians tax offset
From 2027–28, the government will introduce a $250 Working Australians Tax Offset.
This will provide an ongoing annual tax cut for more than 13 million workers.
This new offset builds on:
- three tax cuts already legislated
- the $1,000 instant tax deduction.
For a worker on average earnings, the combined benefit of these five tax cuts could be up to $2,816 each year, relative to 2023–24 tax settings.
Visit the Budget website for the new tax cuts for Australian workers tax explainer document
Capital gains tax
From 1 July 2027, the government will:
- replace the 50 per cent Capital Gains Tax (CGT) discount with a discount based on inflation
- introduce a minimum 30 per cent tax rate on capital gains.
These changes mean investors will only pay tax on their real capital gains, after inflation.
The new arrangements will only apply to capital gains that accrue from 1 July 2027 when they are realised.
Investors who buy new builds can choose either:
- the existing 50 per cent CGT discount, or
- the new inflation‑based arrangements and the minimum tax.
Negative gearing
From 1 July 2027, negative gearing of residential property will be limited to new builds. This change is designed to direct tax support towards new housing supply.
Properties held before announcement (7:30pm AEST 12 May 2026) will be exempt from these changes.
New builds can continue to be negatively geared before and after 1 July 2027.
Investors who buy established housing after 12 May 2026:
- can deduct losses against other income from residential properties, including capital gains
- can carry forward excess losses to future years
- cannot deduct losses against non-residential income, such as wages.
Visit the Budget website for the negative gearing and capital gains tax reform tax explainer document
Discretionary trusts
From 1 July 2028, the government will introduce a minimum tax rate of 30 per cent for discretionary trusts, with some exceptions.
To support small businesses and others who want to restructure, rollover relief will be available for three years from 1 July 2027.
Visit the Budget website for the minimum tax on discretionary trusts tax explainer document