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Budget 2026
4 calculators · 6 scenarios · 1 guide

Your money, your numbers.

2026-27 Federal Budget confirmed. Tax cuts expanded, $1,000 instant deduction, CGT reform from 1 July 2027, negative gearing limited to new builds. Real dollar impact for your household.

Updated 12 May 2026 ✓ Budget delivered · 12 May 2026
Sources: ATO · Treasury · budget.gov.au · Department of Education (HECS-HELP)
✓ Confirmed 12 May 2026: CGT & Negative Gearing Reform
50% CGT discount replaced with inflation indexation + 30% minimum tax from 1 July 2027

Existing assets grandfathered. New builds exempt. Negative gearing limited to new builds from 1 July 2027 — established housing purchased after 12 May 2026 can only offset losses against property income, not wages.

Model the CGT change → Full guide →
★ FEATURED GUIDE
Read the full Budget 2026 explainer — every confirmed & expected measure in plain English.
Read the guide →

Budget Calculators

Tax Changes

The rate on $18,201–$45,000 drops from 16% to 15%. Save $268/year.

Calculate your saving →

HECS Changes

20% HELP debt reduction already legislated. New threshold $67,000.

See your HECS impact →

Property & CGT

CGT discount changes widely discussed. Model different scenarios.

Model scenarios →

Full Impact

See your total position across tax, HECS, super and property.

Full impact calculator →

How the Budget Affects Each Household

Pre-built profiles based on ABS median income, ASFA super balance, and PropTrack rent data. Tap any profile to run the full calculation.

Sarah · Single Renter, 31 · $75K income · $28K HECS
Tax cut $268 + instant deduction ~$205 + WATO $250 (from 2027-28) + $300 energy rebate. HECS wipe already applied.

Tax cut: $268/yr · Instant deduction saving: ~$205/yr · WATO from 2027-28: $250/yr

+$7,425
Year 1 net
James & Mei · Couple, no kids · $180K combined · HECS (James)
Both above $45K: 2 × $268. James's HECS wiped 20%. No Div 296 at this level.

Tax cuts: $536/yr · 2 × instant deduction: ~$410/yr · WATO from 2027-28: $500/yr

+$17,136
Year 1 net
Ben & Laura · Couple + toddler · $140K combined · HECS both
Both above $45K. Combined HECS reduced June 2025. Childcare subsidy unchanged.

Tax cuts: $536/yr · 2 × instant deduction: ~$410/yr · WATO from 2027-28: $500/yr

+$11,436
Year 1 net
Michael & Anita · Family + mortgage · $180K combined · $600K loan · investment property
Investment property bought 2018 — GRANDFATHERED for both CGT and negative gearing. No immediate impact from reform. Div 296 applies to Michael's $3.8M super.

Tax saving: $536/yr (combined) · Div 296: −$8,400/yr · CGT/NG reform: no immediate impact (pre-budget property)

−$2,344
Annual net
Karen · Single parent · $60K income · $42K HECS
Tax cut $268 + instant deduction ~$205 + WATO $250 (from 2027-28) + $300 energy rebate. HECS wipe already applied.

Tax cut: $268/yr · HECS wiped 20% ($8,400) · Low repayment near threshold

+$8,800
Year 1 net
Margaret · Retired, 68 · $620K super · Income $55K pension
Retired — instant deduction and WATO don't apply. Tax cut on pension income. Age Pension rates unchanged.

Tax cut: $268/yr · Super well below $3M threshold · Energy rebate ⏳ expected

+$568
Annual net

What Was Announced

Confirmed measures from the 2026-27 Federal Budget delivered 12 May 2026. Source: budget.gov.au.

Measure Before Confirmed Status
Tax rate $18,201–$45,000 16% (current) 15% from 1 July 2026 · 14% from 1 July 2027 ✓ Confirmed
$1,000 instant tax deduction Not flagged From 2026-27 · no receipts needed up to $1,000 ✓ Confirmed
Working Australians Tax Offset (WATO) Not flagged $250/yr from 2027-28 · effective tax-free threshold $19,985 ✓ Confirmed
CGT discount 50% discount 50% discount → inflation indexation + 30% min tax · from 1 July 2027 · new builds can choose
Existing assets grandfathered on pre-2027 gains		 ✓ Confirmed
Negative gearing Unrestricted Limited to new builds from 1 July 2027 · existing assets grandfathered · established housing after 12 May 2026: losses offset property income only ✓ Confirmed
Trust distributions Standard treatment 30% minimum tax from 1 July 2028 · 3-year rollover relief from 1 July 2027 ✓ Confirmed
HECS threshold $54,435 $67,000 (no change announced in the Budget) ✓ Legislated
Super >$3M earnings (Div 296) 15% 30% (no change announced in the Budget) ✓ Legislated

Frequently Asked Questions

When is the 2026-27 Federal Budget?
The 2026-27 Federal Budget was delivered by Treasurer Jim Chalmers on Tuesday 12 May 2026 at 7:30pm AEST. All calculators on this page have been updated with confirmed figures.
What tax changes are confirmed for 2026-27?
One change is already legislated: the tax rate on income between $18,201 and $45,000 drops from 16% to 15% from 1 July 2026. This saves every taxpayer earning above $45,000 exactly $268 per year. If you earn between $18,201 and $45,000, your saving is 1% of income above $18,200.
What is the HECS debt reduction?
The Government has already legislated a 20% reduction in all HELP (HECS) debt balances. If you owed $40,000, your balance is now $32,000. The repayment threshold has also been raised to $67,000 and repayments are now calculated on income above the threshold, not total income. This means many Australians earning below $67,000 will make no repayments in 2026-27.
Did CGT or negative gearing change in the 2026-27 Budget?
Yes — both were confirmed on 12 May 2026. CGT: the 50% discount will be replaced with inflation indexation plus a 30% minimum tax from 1 July 2027. Assets bought before 1 July 2027 keep the 50% discount. New builds are exempt and can choose between both systems. Negative gearing: from 1 July 2027, limited to new builds only. Existing properties are grandfathered. Established housing bought after 12 May 2026 can only offset losses against property income, not wages. Use the CGT calculator above to model your position.
Disclaimer: These calculators provide estimates based on measures confirmed in the 2026-27 Federal Budget (12 May 2026). Figures are estimates — actual outcomes depend on individual circumstances and implementing legislation. Not financial advice.

Sources: Australian Taxation Office, Department of Education (HECS-HELP rates), Treasury Budget papers available at budget.gov.au.