In this edition, you’ll find a recap of the Budget Briefing event, a breakdown of the key Budget measures, a market and economic snapshot, and a selection of recent updates we’ve shared across our social channels.
In a period where economic news can feel overwhelming, we hope this month’s newsletter brings clarity and confidence to the financial decisions that matter most.
Budget Briefing Event Recap
Thank you to everyone who joined us for our Federal Budget Briefing Seminar recently. It was a fantastic morning, and we truly appreciated the energy, engagement, and thoughtful questions you brought to the room.
We were especially delighted to welcome the friends and family of those who we support, alongside our guest speaker Ernest Kwok. It was wonderful to see many new and familiar faces who were keen to learn and stay informed.
Throughout the session, we explored the key Budget announcements, the proposed tax changes, and what they may mean for Australians managing investments, property, or family wealth structures. Our guest speaker, Ernest, provided valuable context surrounding the economic outlook, and the Q&A session offered clarity about how these proposals may unfold over time.
It was a pleasure to continue the conversation over lunch. We sincerely appreciate those who stayed after the presentation to connect with our team and with one another.
As always, our goal is to ensure you feel informed, supported, and confident — especially when the financial landscape is shifting. We’ll continue to keep you updated as the Budget measures progress through Parliament and as further detail becomes available.
To stay up to date with future events, educational content, and important announcements, we encourage you to follow us on our social channels and keep an eye on our monthly newsletter.
Thank you once again for being part of such a successful morning. We look forward to welcoming you again soon.
Budget 2026-27 Updates
Key Investment Tax Changes
The 2026 Federal Budget introduced several proposed tax changes that may affect how Australians manage investments outside super. These measures are not yet law, and there will be time to understand and plan for them if they proceed. The proposals are part of a broader, long‑term reform package and are designed to be phased in gradually.
Below is a clear overview of the areas which may be of interest to you.
1. Capital Gains Tax (CGT)
The Government has proposed replacing the current 50% CGT discount with an inflation‑based indexation method for gains accrued from 1 July 2027. This means tax would apply to the real gain after adjusting the initial cost base for inflation.
A minimum 30% tax rate would also apply to personal capital gains. This may lead to higher tax outcomes for those on lower marginal tax rates, particularly when selling assets such as shares, managed funds, or property.
For assets already owned, gains would be split into two parts:
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Growth before 1 July 2027 may still receive the 50% discount.
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Growth after 1 July 2027 would use the new indexation method and be subject to the minimum 30% rate.
2. Negative Gearing — Residential Property
From 1 July 2027, negative gearing would only apply to new residential properties.
For established residential properties purchased after Budget night (12 May 2026):
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Rental losses would no longer reduce tax on other income.
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Losses could only be used against future residential property income or future capital gains.
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Losses could be carried forward.
Importantly, properties owned or contracted before Budget night remain under current rules.
These changes may influence long‑term planning for those who hold investment properties, but existing arrangements are protected.
3. Discretionary Trusts
From 1 July 2028, discretionary trusts would face a minimum 30% tax on distributions, regardless of the beneficiary’s marginal tax rate. This may reduce the flexibility of distributing income to lower‑tax beneficiaries.
The new rules do not apply to:
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Fixed/unit trusts
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Super funds
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Special disability trusts
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Testamentary trusts created before Budget night
If you use a family trust as part of your financial structure, there will be time to review whether any adjustments are needed.
4. An Important Reminder
Although these measures are significant, they are still proposals. They are not yet legislated, and details may change as they progress through Parliament. If they progress, they will be introduced gradually, giving our advisers time to plan.
At this moment, there is no need to make immediate decisions. However, if you would like clarity on how these proposals may relate to your broader financial strategy, please don’t hesitate to get in touch with us.
Market & Economic Snapshot
Global Developments: Middle East Conflict
The situation in the Middle East has intensified over the past week, with continued disruption to global oil supply routes. Traffic through the Strait of Hormuz remains severely restricted, with only a handful of vessels passing each day compared with normal levels of around 60. Geopolitical tensions remain elevated, with both the US and Iran signalling that further escalation is possible.
These developments have led to short‑term volatility across global share markets, including the ASX, as investors respond to shifting energy prices and inflation expectations.
Australian Economic Update
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Unemployment has risen to 4.5%, which is consistent with economies adjusting after post-pandemic expansions
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Inflation has eased slightly from 4.6% to 4.3%
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The RBA cash rate was raised to 4.35%
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The ASX 200 has experienced sharp swings, falling earlier in the week before rebounding as sentiment improved
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Fuel prices remain volatile due to global supply disruptions
We recognise that current events may feel uncertain, and our team is actively monitoring the situation to ensure you remain informed as things progress.
If you would like to discuss how these updates relate to your financial strategy, please don’t hesitate to get in touch with us using the details below:
🔗 http://calendly.com/chris_mcrae
📞 (02) 7804 2833
May Social Media Recap
Since our last newsletter, Matt has been sharing timely updates regarding the Federal Budget across our social media channels, helping keep our Avondale community informed.
We’ve included a selection of his recent videos below for you to explore.
Federal Budget Speculations
Guest Speaker Introduction
4 Common Investment Mistakes
If you or a loved one still have questions surrounding the federal budget, feel free to reach out to discuss your financial plan with Chris using the details below.
🔗 http://calendly.com/chris_mcrae
📞 (02) 7804 2833
We hope you found this edition of our monthly newsletter insightful. If you’d like more frequent tips and updates, we’d love to stay connected with you on:
