Question 1

When did the 2026-27 Federal Budget take effect?

Accepted Answer

The Budget was handed down on 12 May 2026. Most measures commence on 1 July 2026 (start of FY2026-27). Some take effect later: the CGT and negative gearing reforms from 1 July 2027; the discretionary trust 30% minimum tax from 1 July 2028.

Question 2

What changed for small business?

Accepted Answer

The headline measures are the permanent $20,000 instant asset write-off, the return of loss carry-back for companies under $1B turnover, and the rollout of payday super from 1 July 2026.

Question 3

What changed for sole traders and freelancers?

Accepted Answer

The new $1,000 flat work-related deduction simplifies tax returns for many sole traders. Stage 3+ Phase 2 cuts the second tax bracket from 16% to 15% from 1 July 2026. The $250 Working Australians Tax Offset arrives 1 July 2027.

Question 4

What changed for property investors?

Accepted Answer

Negative gearing on established residential property purchased after 7:30pm on 12 May 2026 is restricted from 1 July 2027 — losses can only offset rental income or capital gains. Existing properties and new builds are grandfathered. CGT reform replaces the 50% discount with an indexation-based discount + 30% minimum on real gains, also from 1 July 2027.

Question 5

What didn't change?

Accepted Answer

The GST registration threshold stays at $75,000. Working-from-home fixed rate stays at 67c per hour. Vehicle cents-per-km rate stays at 88c. Federal energy bill rebates were not extended into 2026.

Question 6

When will Senate amendments be known?

Accepted Answer

Budget measures pass through the House of Representatives and Senate over the months following Budget night. Material amendments — particularly to negative gearing, CGT, and the trust 30% minimum tax — are likely. We will update individual posts as legislation progresses; check the 'Last reviewed' date on each.

Australian Federal Budget 2026-27 — What It Means for You