Budget 2026 is all about transition

Mike Taylor

Managing Editor and Publisher

13 May 2026

Financial advisers and accountants are going to be kept busy helping clients navigate the changes announced by Treasurer, Jim Chalmers in the Federal Budget.

And much of the assistance delivered by advisers will be around the transition arrangements entailed in rolling out the Budget changes which Chalmers sought to paint as a boon to young homebuyers.

“It’s too hard for too many Australians to buy their own home and get ahead,” Chalmers said. “That’s why we’re providing tax relief to workers and giving more Australians the opportunity to own their own home by making our tax system fairer.

“We will limit negative gearing for residential property to new builds from 1 July 2027. Arrangements will remain unchanged for all existing investments made before 7:30pm AEST 12 May 2026.

“We will replace the 50% capital gains tax (CGT) discount with inflation‑adjusted indexation from 1 July 2027, to restore the taxation of real gains, and introduce a minimum tax rate of 30% on realised gains. This will apply to all assets except new homes, where both new and old arrangements will be available. It will be prospective, with gains accrued on existing investments prior to the start date to retain the 50 per cent discount.

“Our tax changes will help around 75,000 homeowners into the market over the next decade and are part of a package of housing reforms in this Budget that will boost housing supply.

“They will help level the playing field for first home buyers and build on the strong support we are already delivering through the expanded 5 per cent Deposit Program and the introduction 2 of Help to Buy. Together, these programs now mean that more than half of all first home buyers are entering home ownership with the support of the Albanese Government,” Chalmers’ statement said.

However, the Financial Services Council came back hard describing Chalmers has having applied a “bait and switch” approach.

FSC chief executive, Blake Briggs said “The Treasurer has delivered a ‘bait and switch’ budget that will raise taxes on Australian investors by applying the proposed Capital Gains Tax (CGT) changes to all asset classes.

“At the Treasurer’s economic roundtable, Treasury presented evidence that capital markets have accounted for almost half of Australia’s GDP growth since Federation, underscoring that investment markets do more than generate returns for investors, but also fund the technology, equipment and infrastructure that allow businesses and workers to become more productive. Making capital markets a less attractive place to invest will only serve to further weaken economic growth.

“The Treasurer has used the well-established inequity in the housing market as a stalking-horse for tax increases on investments in asset classes that would play an important role in lifting Australia’s economic growth.

“If the Government is genuine that their focus is on helping young Australians purchase a home, the proposed CGT changes should be targeted at the housing market, rather than being expanded to all asset classes.

“The Treasurer should not be raising taxes on Australians, including younger Australians, saving for their first home and building their wealth through common investments such as ETFs, managed funds, and shares, outside of the property market.”

The FSC recognises that the Treasurer has announced policies to support economic growth and increase efficiency for financial services companies, including continuing its commitment to modernise, simplify and improve regulation in the financial sector by reducing unnecessary red tape.

“This Budget, however, creates significant uncertainty for investors that risks undermining the Government’s own objectives of lifting growth.”