18/05/2026
🚨 My thoughts on federal budget 2026 🚨
Many investors still believe Trust or Company structures remain highly tax-efficient, but yesterday’s budget signals that this may not continue in the same way moving forward.
The proposal suggests that after 2028, investments held in Trusts or Companies may no longer receive the current 50% CGT discount, while a minimum tax rate of around 30% could apply. If implemented, this could significantly impact long-term investors and trust distribution strategies previously used to minimise tax liability.
This means larger portfolio investors may need to reassess their structures. Cashflow-positive strategies, strong rental yields, and conservative debt levels may become even more important.
📊 Potential Winners:
✔️ Strong cashflow investors
✔️ Long-term buy-and-hold strategies
✔️ Low-leverage portfolios
✔️ First home buyers facing less investor competition
⚠️ Potential Challenges:
▪ Highly leveraged investors
▪ Aggressive tax minimisation strategies
▪ Short-term speculative investors
🧭 Strategies investors may need to focus on:
▪ High-quality locations
▪ Cashflow-positive or neutral properties
▪ Conservative debt management
▪ Diversification across asset classes
▪ Reviewing structures with professionals
🏗️ New builds and high-yield strategies may also become more attractive, including:
▪ Duplex & townhouse developments
▪ Affordable high-demand housing
▪ Off-the-plan/new builds with depreciation benefits
▪ Manufacturing & logistics growth corridors
These strategies can improve rental yield, support stronger cashflow, and still maintain long-term growth potential.
Property remains one of Australia’s strongest long-term wealth creation tools but strategy, structure, and cashflow management are becoming more important than ever. 🏡🇦🇺
⚠️ Disclaimer: Personal opinion only. Budget proposals are not yet law and may change. Please seek professional financial, legal, or tax advice before making investment decisions.
