Replaced by indexation + 30% minimum tax. Applies to individuals, trusts and partnerships — including pre-CGT assets.
Only gains accruing on or after 1 July 2027 are affected. Pre-CGT asset gains accrued before then stay exempt.
Investors in new residential property can pick the 50% discount or indexation + 30% min tax.
Income support recipients, including Age Pensioners, are exempt from the new 30% minimum tax.
Time-limited concession for foreign investors disposing of renewable energy infrastructure assets.
Properties acquired (or under contract) before 7:30 PM AEST 12 May 2026 are exempt until disposal.
Eligible new builds are exempt — encouraging investment in new housing supply.
Properties in super funds, widely held trusts, build-to-rent developments and government housing programs are excluded.
Beneficiaries (not corporate) receive non-refundable credits for tax paid by the trustee.
Assessed on trust income they're entitled to — cannot claim credits for trustee-paid tax.
Fixed trusts, fixed testamentary trusts, complying super funds, special disability trusts, and deceased estates.
Expanded rollover relief for 3 years from 1 July 2027 — restructure into a company or fixed trust.
Permanent annual offset for salary, wages and sole-trader business income.
Claim up to $1,000 in work-related expenses without itemising or substantiating. Donations & union fees still claimable on top.
16% rate → 15% from 1 Jul 2026, then → 14% from 1 Jul 2027.
Singles $27,222 → $28,011 · Family $45,907 → $47,238 · Senior single $43,020 → $44,268 · Senior family $59,886 → $61,623.
The higher rebate percentage for individuals 65+ will be removed.
| Taxable Income | FY2026 | FY2027 | FY2028 |
|---|---|---|---|
| $0 – $18,200 | Tax-free | Tax-free | Tax-free |
| $18,201 – $45,000 | 16% | 15% | 14% |
| $45,001 – $135,000 | 30% | 30% | 30% |
| $135,001 – $190,000 | 37% | 37% | 37% |
| $190,001+ | 45% | 45% | 45% |
For small businesses with turnover < $10M. Assets ≥ $20K still go into the depreciation pool.
Companies with global turnover < $1B can offset losses against tax paid up to 2 years earlier (revenue losses only, capped at franking balance).
Companies under $10M turnover, in first 2 years, can convert losses to a refundable offset (capped at FBT + wage withholding).
Opt-in to monthly PAYG instalments calculated by accounting software in real time. Required for non-compliant taxpayers.
Excise rates cut 60.9% — a 32c/L reduction for petrol & diesel. Heavy vehicle road user charge cut from 32.4c/L to zero.
Core offset rates +4.5pp (~25% increase) · intensity threshold 2% → 1.5% · refundable threshold $20M → $50M · max expenditure $150M → $200M · min threshold $20K → $50K · supporting expenditure removed.
$8.2M over 3 years to extend financial counselling and NewAccess mental health coaching for small business owners.
Keep 100% FBT discount (0% statutory rate) if provided before 1 April 2029.
Eligible for 25% FBT discount (15% statutory rate).
20% statutory rate still applies — including EVs above the lux car tax threshold.
Ban on foreign purchases of established dwellings extended by 2 years 3 months.
$86.3M over 4 years (+ $9.7M/yr ongoing). Real-time fraud detection, expanded ATO powers, pause/waive debts of fraud victims, recover from intermediaries.
Amendments to Australia's global & domestic minimum tax legislation to implement the side-by-side package agreed 5 January 2026.