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2026 Federal Budget Impact Check

Own Property, Use a Family Trust, or Planning to Buy/Sell?

The 2026 Federal Budget may affect your next move. Proposed changes to negative gearing, capital gains tax and discretionary trusts could impact property investors, family trusts, business owners and Australians planning to buy, sell, refinance or restructure.

Property investors
Family trusts
Business owners
First-home buyers
ATO debt & credit issues

Before you act, check whether the proposed changes affect your position.

This is an initial triage page for people who may need tax, legal, finance, conveyancing, debt or restructuring assistance.

  • Buying an established investment property
  • Buying a new build or off-the-plan property
  • Selling property, shares or business assets
  • Using a family or discretionary trust
  • Refinancing under ATO, credit or mortgage pressure
Do not panic-buy, panic-sell or restructure blindly. The first step is working out whether the proposed changes actually affect your situation. Start Free Check

What changed in the Budget?

The proposed reforms affect three major parts of Australian wealth planning: property investment losses, capital gains and discretionary trusts.

Negative Gearing

Future established property purchases may be treated differently

From 1 July 2027, negative gearing for residential property is proposed to be limited mainly to new builds. Existing arrangements are expected to remain unchanged for properties held before Budget night.

Capital Gains Tax

The 50% CGT discount may be replaced

The proposed reform replaces the 50% CGT discount with cost-base indexation and introduces a 30% minimum tax on net capital gains from 1 July 2027.

Discretionary Trusts

Trust income may face a 30% minimum tax

From 1 July 2028, discretionary trusts are proposed to face a 30% minimum tax, with exceptions and transitional restructuring relief.

Source basis: Australian Government Budget 2026–27 tax reform material. View official Budget tax reform page.

Where this may affect you

This page is designed to identify whether your matter should be reviewed further before you buy, sell, refinance or restructure.

Property Investors

Investment property decisions may need new modelling.

If you own or plan to buy investment property, the issue is not just the headline change. It is how the rules affect cash flow, tax position, timing and asset choice.

  • Are you buying established property after Budget night?
  • Are you relying on negative gearing to make the numbers work?
  • Are you considering a new build or off-the-plan purchase?
  • Are you planning to sell within the next two years?
  • Is the property held personally, in a trust or another structure?
  • Do you have ATO debt, refinance pressure or credit issues?
Check Investor Impact
Family / Discretionary Trusts

Trust structures should not be ignored.

If a trust receives income, owns property, holds investments or forms part of a family business or estate plan, it may require review before the proposed rules commence.

  • Does the trust earn business income?
  • Does the trust hold property or investment assets?
  • Does the trust distribute income to family members?
  • Is there a bucket company or related entity?
  • Is the trust part of estate or succession planning?
  • Has the trust structure been reviewed recently?
Check Trust Impact
First-Home Buyers

Investor uncertainty may create a buying window.

If investors pause or become more selective, some first-home buyers may gain negotiating leverage. But leverage is only useful if finance, contract review and property selection are handled correctly.

  • Are you pre-approved and ready to move?
  • Are you competing against fewer investors?
  • Do you understand established vs new-build risk?
  • Have you reviewed contract and finance conditions?
  • Are you buying a property with strata, defects or resale risk?
  • Do you need broker or conveyancing support?
Check Buyer Opportunity
Business Owners

Business and family structures may be affected together.

Business owners often have trusts, companies, property, ATO arrangements, finance facilities and personal guarantees. One change can affect several parts of the structure.

  • Does the business use a discretionary trust?
  • Is there ATO debt or a payment arrangement?
  • Are business assets or property held in related entities?
  • Are you refinancing, restructuring or selling assets?
  • Are personal guarantees or credit issues involved?
  • Do you need tax/legal triage before speaking to finance?
Check Business Impact
ATO Debt / Credit / Mortgage Pressure

Pressure changes the order of decisions.

If there is ATO debt, credit damage, mortgage stress or refinancing pressure, the right pathway may involve legal, tax, credit, debt and finance steps in the correct order.

  • Do you have ATO debt or a director penalty issue?
  • Are credit defaults affecting finance options?
  • Are you trying to refinance under pressure?
  • Are you considering selling property to resolve debt?
  • Is business cash flow causing tax arrears?
  • Do you need debt consolidation or credit repair review?
Check Urgent Options

Real examples of why this matters

These examples are not advice. They show why different people may need different pathways.

Investor buying an established apartment

A buyer who was relying on rental losses reducing wage income may need to remodel the purchase if future losses are quarantined instead of used the way they expected.

Family trust receiving business income

A business owner using a discretionary trust may need to review whether future trust income distributions remain effective under the proposed minimum tax rules.

Owner planning to sell property or shares

A person planning to sell an asset may need to check cost base records, timing, ownership structure and the potential CGT treatment before completing the sale.

First-home buyer entering the market

If some investors step back from established properties, first-home buyers may gain leverage. That only helps if finance, contract review and negotiation are ready.

Business owner with ATO debt

A business owner dealing with ATO debt may need to review tax, credit, finance and asset decisions before refinancing, selling property or restructuring.

Client with credit damage trying to refinance

Credit issues can limit finance options. The first step may be credit report review, default strategy, debt consolidation or a legal/tax pathway before applying again.

How the impact check works

The goal is to identify the correct pathway before time, money or tax position is put at risk.

1 Complete the short form

Tell us whether you are an investor, trust user, buyer, business owner or dealing with pressure.

2 Initial triage

Your enquiry is reviewed to identify whether it appears to involve tax, legal, finance, credit, debt or conveyancing issues.

3 Correct pathway

The matter is routed to the appropriate next step, which may involve TLS or a suitable professional referral.

4 Formal advice if required

Where needed, formal advice can be arranged with the appropriate qualified adviser before you act.

Free Initial Triage

Get your Budget Impact Check

Complete the short form and Tax Legal Solutions will identify whether your situation may require further tax, legal, finance, conveyancing, credit, debt or restructuring review.

  • Property investor impact check
  • Family trust and business structure check
  • CGT and asset sale issue spotting
  • First-home buyer opportunity check
  • ATO debt, credit and refinance pressure triage

Start your free check

This form is intentionally short. Detailed assessment happens after triage.

Submitting this form does not create a client relationship. Formal legal, tax, financial or credit advice requires a consultation with an appropriately qualified adviser.

Why Tax Legal Solutions?

TLS assists Australians with tax debt, ATO disputes, business restructuring, debt consolidation, credit repair and tax-related legal issues.

Start Impact Check
Tax and legal issue spotting The review identifies whether your matter may require tax, legal, finance, credit, conveyancing, debt or restructuring assistance.
ATO debt and pressure matters If tax debt, director penalty risk, payment arrangements or enforcement issues are involved, the pathway may need to be handled carefully.
Credit repair and debt consolidation If credit defaults, mortgage stress or refinancing difficulty are involved, the correct sequence can matter before applying for finance again.
Property and structure triage Where property, trusts, companies, CGT, finance and tax issues overlap, TLS can help identify what needs formal review.

Common questions

Simple answers before you complete the impact check.

Is negative gearing being completely removed?

No. The proposed reform limits negative gearing for residential property mainly to new builds from 1 July 2027. Existing arrangements are expected to remain unchanged for properties held before Budget night.

Should I rush to buy property before the rules start?

Not without modelling. A rushed purchase can create worse problems than the tax change itself, especially if the property is overpriced, poorly financed, poorly located or unsuitable.

Do family trusts need to be reviewed?

Possibly. If a discretionary trust holds property, receives business income, distributes income to family members or forms part of your estate or succession planning, it may need review before the proposed minimum tax rules commence.

Can this help first-home buyers?

Potentially. If investor demand changes, some first-home buyers may gain negotiating leverage. But that does not remove the need for finance approval, conveyancing review and proper property due diligence.

Is this legal or tax advice?

No. This page and form are for initial triage only. Formal legal, tax, financial or credit advice requires a consultation with an appropriately qualified adviser.

Before you buy, sell, refinance or restructure, check your position.

The proposed Budget changes may affect property investors, family trusts, business owners and Australians dealing with ATO debt, credit issues or mortgage stress.

Get My Free Budget Impact Check