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The 2026 Federal Budget proposes major changes to negative gearing, capital gains tax (CGT), small business tax and cost-of-living support, and what it means for you depends on your stage of life and goals.
As a member-owned bank, our focus has always been helping you and your family navigate the big financial moments with confidence, and this Budget expects to introduce some of the biggest changes for many years.
The proposals include the permanent $20,000 instant asset write-off for small businesses, plus substantial reforms to negative gearing, CGT, family trusts and cost-of-living support. These measures affect first home buyers, property investors, small business owners and people refinancing in various ways.
Whilst the measures are not yet law, and could change before legislation is created, knowing what’s proposed, how it might affect you, and the actions you could take to maximise your position could be key to your financial success in the coming years.
To help you understand what is relevant to you, we’ve outlined what is changing and the questions you may want to consider across six common life and financial situations.
Find those that best fit where you are now or where you might go next and use them to start a discussion with your accountant, financial adviser or lender.
As always, your local IMB Bank team is always here to chat, in branch, over the phone, or online.
What does the Budget mean if I'm saving for my first home?
The Short Answer
The proposed changes may affect competition for both new and established homes, and the way some first home buyers approach saving and borrowing.
What this means for you
The Budget may influence housing market dynamics by easing investor demand for established homes and potentially making new homes more desirable.
Cost-of-living measures and the legislated tax cuts may also provide a modest lift to take-home pay, which could support savings capacity for some households over time.
What questions should I ask?
• How could the proposed changes to negative gearing and CGT affect investor competition for the kind of home I want to buy?
• Should I consider different savings options, including term deposits, as part of my overall strategy?
• How might changes to my after-tax income affect my borrowing capacity or deposit timeline?
• Are there government schemes that I should explore alongside my savings plan?
Talk to your accountant, financial adviser or IMB Bank to understand what these changes mean for your situation.
What does the Budget mean if we're considering an investment property?
The Short Answer
The proposed changes may influence how property investors assess new versus established properties and how investment returns are modelled over time.
What this means for you
The proposed changes represent a significant shift in how residential property investments may be assessed going forward.
New builds may become relatively more attractive compared to established homes under the proposed rules, and how you fund and structure a purchase now versus later may have different implications depending on final policy settings.
What questions should I ask?
• Would buying a new build rather than an established home preserve access to negative gearing under the proposed rules?
• How might the proposed move from the 50% CGT discount to indexation with a 30% minimum tax change our view of buy-and-hold returns?
• Some commentators suggest rents could rise – is that a factor we should weigh in our planning?
• Is now the right time to check our borrowing capacity, clarify our position and lock in a strategy as the property market reacts to the changes?
Talk to your accountant, financial adviser or your IMB Bank lender to understand what these changes mean for your situation.
What does the Budget mean for established property investors?
The Short Answer
The proposed changes may create a different set of considerations for existing versus future investments, particularly in relation to tax treatment and portfolio structure.
What this means for you
These proposed changes represent one of the more significant shifts to property investment settings in recent years.
Existing holdings may be grandfathered for negative gearing under earlier rules, while future purchases may be treated differently depending on property type and timing.
A proposed three-year window from July 2027 may also allow some restructuring out of trusts, which could be worth reviewing with your adviser.
What questions should I ask?
• What might be the most suitable path forward for existing properties: hold, sell, or restructure?
• How may the proposed tax changes affect the after-tax returns of future investments?
• Should future investments focus on new builds or alternative approaches?
• Do I need to review my loan structures, offset accounts or funding approach across my portfolio?
Talk to your accountant, financial adviser or your IMB Bank lender to understand what these changes mean for your situation.
What does the Budget mean for my small business?
The Short Answer
The Budget includes a mix of measures that may affect cash flow, tax reporting and longer-term business planning.
What this means for you
A permanent $20,000 instant asset write-off and the return of loss carry-back may help with investment and cash flow, while simpler tax deductions and red-tape relief may lighten the day-to-day load.
Personal tax cuts may also flow through to business income at the lower brackets. There may also be implications for those thinking about an eventual sale.
Small business CGT concessions are preserved, but the broader move to indexation plus a 30% minimum tax from July 2027 may reduce after-tax proceeds on sales that fall outside those concessions.
The proposed trust reforms may also warrant consideration, even if implementation is a couple of years off.
What questions should I ask?
• How should I approach the timing of business purchases or investments?
• How do personal tax changes flow through to my overall income position?
• Should I review my current business financing arrangements?
• How may proposed CGT changes affect a future business sale?
• Should I reconsider how my business is structured?
Talk to your accountant, financial adviser or your IMB Bank business banker to understand what these changes mean for your situation.
What does the Budget mean if we're looking to refinance?
The Short Answer
Refinancing decisions remain dependent on individual circumstances, although Budget measures may influence household cash flow and borrowing considerations for some households.
What this means for you
Some tax and cost-of-living measures may affect household income and expenses. The proposed negative gearing and CGT changes mainly matter if you are looking to release equity to invest in established property; for a straightforward refinance they may have little direct impact.
As a member-owned bank, IMB Bank is here to support customers through changing conditions.
What questions should I ask?
• How do changes to income and expenses affect my borrowing capacity?
• Should I review my loan structure, including offset or split options?
• Could market conditions affect my refinancing position?
• Should I review my lending structure before accessing equity?
Talk to your accountant, financial adviser or your IMB Bank lender to understand what these changes mean for your situation.
