2026–27 Federal Budget: What Small Business Owners and Property Investors Need to Know
Treasurer Jim Chalmers handed down the 2026–27 Federal Budget on 12 May 2026 — described as the most significant tax reform package in over 25 years. For small business owners and property investors, several changes demand immediate attention.
Small Business
Good news for eligible businesses: the $20,000 instant asset write-off has been permanently extended for businesses with annual turnover under $10 million. This provides certainty for operators planning equipment or asset purchases in the year ahead.
Existing small business CGT concessions remain intact. The budget confirms that existing CGT concessions for eligible small businesses — allowing them to halve or completely disregard CGT on the sale of eligible assets — are unchanged. This is a relief for business owners planning succession or exit strategies.
Property Investors
This is where the most significant reforms land. From July 2027, negative gearing on residential property will be restricted to new builds only. Existing investors can continue to claim negative gearing concessions until they sell their properties, but anyone acquiring established residential property after that date will lose the deduction. Importantly, commercial property retains full negative gearing, making it a more tax-advantaged option going forward.
On capital gains, from 1 July 2027 the 50% CGT discount for assets held more than 12 months will be replaced with cost-base indexation (CPI uplift) plus a 30% minimum effective tax rate. Investors in new housing will be able to choose either the current 50% CGT discount or the new rules when selling.
Act Now
These reforms create both risk and opportunity. Whether you hold investment property, plan to sell a business asset, or are reviewing your structure, proactive planning before July 2027 is essential.
Contact Platinum Advisory today to review how these changes affect your position.
