One Month On From the Budget: What's Actually Changed (and What Hasn't)

It's been a month since the Federal Budget, and the headlines about negative gearing and capital gains tax haven't slowed down. Here's the calm, plain-English version of where things really stand.

If you've been following the news, you've probably seen plenty of coverage suggesting negative gearing has been scrapped and capital gains tax has been overhauled. A lot of it makes these changes sound like a done deal.

They're not. Here's the simple version.

The big property and tax changes aren't law yet

The proposed changes to capital gains tax and negative gearing still have to pass the Senate. A Senate committee is examining the bill right now, with public hearings in mid-June and a report due by 22 June — and the Government needs the support of the Greens to get it through. That means things could still change before it becomes law, if it becomes law at all.

And even if it does pass, none of it starts until 1 July 2027 — more than a year away. There's no deadline this week, nothing you need to sell, and no quick decisions to make. There's genuinely time to plan properly. So if the headlines have you worried, take a breath: nothing has changed yet.

What it could mean for you

If you're working and building wealth

The proposed capital gains changes would only apply to investment gains made after July 2027 — everything you've built up until then stays under today's rules. In the meantime, here's some good news that is already locked in: your income tax drops from 1 July this year, regardless of what happens with the rest of the package.

If you're retired

If your savings are held in a super pension, these changes largely don't affect you. And if you own an investment property that you bought before Budget night (12 May), the bill as it stands keeps the current rules in place for you. We're keeping a close eye on the Senate negotiations and will let you know if anything shifts.

If you (or someone you know) are thinking about buying an investment property

Under the proposed rules, brand-new builds would keep their tax advantages, while established properties would lose some of theirs from July 2027. That makes timing and the type of property you buy more important than usual. But because the rules aren't final yet — and some of the fine print is still being worked out — it's worth a conversation before making any decisions based on the headlines.

Two other things worth knowing

The new tax on large super balances

A new tax on super balances over $3 million starts on 1 July. If your balance is nowhere near $3 million, this doesn't affect you at all. If you're close to it, it's worth a chat this month, as there are a couple of dates that matter.

Private health insurance, if you're 65 or over

From April 2027, the higher private health insurance rebate for people aged 65 and over is being removed, which will push premiums up for that age group. Nothing changes before then, and it's something we can review together at your next catch-up. If you're under 65, there's no change for you.

What happens next

The Senate will make its decision in the coming weeks. Once it does, we'll share a short update on what actually passed and whether anything in your plan needs attention. Until then, the simplest takeaway is this: the headlines are running ahead of the law, and you don't need to do a thing.

If you'd like to talk through what any of this means for your own situation, we're always happy to help — please get in touch.