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ARTICLE · 04 JUNE 2026

Federal Budget 2026-27: A Preview

Corrs Chambers Westgarth
Corrs Chambers Westgarth
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Corrs Chambers Westgarth

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The 2026-27 Federal Budget faces the challenge of balancing ambition with caution amid geopolitical and economic uncertainty. With rumoured reforms to capital gains tax discounts, trust taxation, and negative gearing on the table, businesses are seeking clarity on policy settings that could fundamentally reshape investment structures and tax planning strategies. Will the government pursue transformative reform or opt for measured adjustments to strengthen national resilience?

AustraliaTax
Simon Mifsud
Simon Mifsud
Michael Gotze
Michael Gotze
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With the 2026-27 Federal Budget due to be delivered next week, the federal government faces a challenging task in setting its policy and tax agenda for the coming year during a period of geopolitical and macroeconomic uncertainty.

This Budget was initially framed as one of ambition, with the Treasurer identifying three guiding principles: addressing intergenerational unfairness, incentivising productive business investment, and making the Australian tax system simpler and more sustainable. However, expectations have since been reset, with the Prime Minister subsequently reframing the Budget as one directed towards building and strengthening Australia’s national resilience.

This tension between ambition and caution seems likely to be the defining feature of this Budget. Some tax measures, including amended anti-avoidance provisions, may be included alongside more naturally high profile measures like changes to the capital gains tax (CGT) regime.

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