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ARTICLE · 20 MAY 2026

Federal Budget 2026: Back To The Future

Herbert Smith Freehills Kramer LLP
Herbert Smith Freehills Kramer LLP
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Herbert Smith Freehills Kramer LLP

Herbert Smith Freehills Kramer LLP

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The quote sometimes attributed to Vladimir Lenin that “there are decades where nothing happens; and there are weeks where decades happen” seems particularly appropriate in relation to the 2026 Federal Budget.

AustraliaTax
Toby Eggleston
Toby Eggleston
Ryan Leslie
Ryan Leslie
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Nick Heggart
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Jay Prasad
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James Pettigrew
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Introduction

The quote sometimes attributed to Vladimir Lenin that “there are decades where nothing happens; and there are weeks where decades happen” seems particularly appropriate in relation to the 2026 Federal Budget. The last few years have lulled tax advisors into a state to not expect major announcements on the second Tuesday in May.

This year, however, Treasurer Chalmers has sought to fundamentally re-shape the taxation of private taxpayers, particularly in relation to capital gains tax and discretionary trusts.

While there are some corporate tax proposals, the personal tax side is where the focus was under the guise of intergenerational equity. It will take some time for the dust to settle to determine what impact this has on investment going forward.

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