Federal Budget 2026 Analysis

What the proposed reforms mean for clients, high-net-worth investors and families.

The 2026–27 Federal Budget introduces a broad range of proposed tax and wealth reforms that may materially reshape how high-net-worth Australians structure, preserve and transfer wealth over the coming decades.

While many of the announcements have generated immediate headlines, the greater challenge for investors is understanding what is legislated, what remains proposed, and where strategic planning opportunities may emerge.

This morning, Andrew Hewison, Glenn Fairbairn and Chris Morcom came together to provide a measured analysis of the Federal Budget and the practical implications for investors, business owners and multi-generational families.

Rather than simply revisiting the announcements themselves, this discussion focuses on what the reforms may mean in practice, the strategic considerations investors should begin preparing for now, and the longer-term implications for wealth preservation and structuring.

Watch the Full Federal Budget Analysis

Capital Gains Tax Reform & Portfolio Structuring

The proposed replacement of the 50% CGT discount with CPI indexation may materially alter after-tax investment outcomes across property, shares and private investment holdings. We explore what these proposed changes could mean for investment time horizons, portfolio construction and long-term asset allocation decisions.

Negative Gearing Changes

From 1 July 2027, losses from established residential investment properties acquired after 7:30PM AEST on 12 May 2026 will only be deductible against residential rental income or future capital gains. This marks a significant shift for property investors and introduces new considerations around acquisition strategy, asset selection and long-term portfolio planning.

Discretionary Trusts & Intergenerational Wealth Planning

The proposed 30% Minimum Distribution Tax for discretionary trusts introduces new considerations for family groups, business owners and succession structures. Our analysis focuses on the strategic implications for trust utilisation, restructuring considerations and preserving flexibility across generations.

Superannuation — Division 296

The additional 15% tax on superannuation earnings attributed to balances above $3 million is now legislated and due to take effect from 1 July 2026. The changes introduce new considerations around liquidity, contribution strategy and the evolving role superannuation may play within broader family wealth structures.

A Long-Term Perspective Matters

At Hewison Private Wealth, we believe wealth management should never be driven by headlines alone. Markets, governments and legislation will continue to evolve. Disciplined investment philosophy, strategic structuring and long-term thinking remain central to preserving wealth over time.

If you would like to discuss how the Federal Budget changes may affect your personal circumstances, speak with your Adviser or contact our team.

E: info@hewison.com.au
P: 03 8548 4800