Australian Federal Budget 2026 – Insights from Bentleys
By Sandie Boswell, CEO, Bentleys Network

The 2026 Federal Budget: Resilience, Reform and What It Means for You

Last night, Treasurer Jim Chalmers handed down what he has called the Government’s most ambitious Budget yet, built around a central promise, resilience and reform to build an economy that works for all Australians.

This is at a moment of high economic tension not just within Australia but globally. The war in the Middle East has triggered a global energy crisis, inflation is rising, and the Reserve Bank warning of a slowdown in growth. The Treasurer acknowledged these pressures prior to Budget night, describing an economy “held hostage” by global conflict and a tax system that is not working for too many Australians.

Housing affordability sits at the heart of this Budget. From last night, the Government drew a line in the sand announcing that negative gearing on existing properties will be grandfathered only for pre-Budget night purchases, with the restriction taking full effect from 1 July 2027. New investment will be limited to newly built homes. From July 2027, the 50 per cent capital gains tax discount will be replaced with an inflation based indexation method, subject to a 30 per cent minimum tax rate. A new minimum tax on trust distributions has also been unveiled. This represents the most significant overhaul of property and investment tax settings in over two decades. Treasury expects these changes to shift 75,000 properties from investors to homeowners over the coming decade.

Cost of living relief is both targeted and layered, combining new permanent tax offsets, fuel relief at the bowser and further income tax cuts designed to put money back in the pockets of working Australians. Again the aim is to support working Australians facing an increasing costs crunch and dealing with rising property prices.

At Bentleys, we have analysed the Budget measures that matter most to you, your family and your business. Our detailed report below unpacks the implications so you may understand the ramifications of the announcements. Reach out if you would like further information about how the changes will impact you.

If you have any questions about how this budget impacts you and your business, please contact your local Bentleys advisor.

We are here to assist you in navigating through the information and to help you get where you want to be.

Click here to access the Federal Budget 2026 report.