Overview

This Federal Budget is shifting the dial for all Australians

Treasurer Jim Chalmers delivered the 2026-27 Federal Budget on Tuesday 12 May 2026 and all eyes were on Canberra for what was heralded as Labor’s “housing budget”. This marks the government’s fifth budget since returning to power, and the framing was deliberately targeted to appeal to younger Australians, promising that the government is making bold moves to tackle affordability and to overhaul the tax system.

While detailed explanations are yet to be revealed, the budget papers have signaled that significant changes are coming that are likely have a wide-ranging impact. High net worth individuals, in particular, will be taking note of the sweeping tax changes, that include a changes to the CGT tax regime and the taxation of trusts, loss of the use of "bucket companies" and the negative gearing of residential property, as well as the loss of the pre-CGT status of assets.

The proposed changes will no doubt require changes to existing structures and planning to ensure that any impact is limited.

To dive deeper into this year's budget, read our budget summary below, prepared by the Kelly+Partners Tax Consulting team.