This article is general information only. It does not consider your personal financial situation and is not tax, legal, or financial advice. Digital Finance Solutions is a mortgage broker, not a registered tax agent or financial adviser. For advice on how these changes affect your specific circumstances, speak to a qualified accountant or tax adviser. Tax measures announced in a Federal Budget can also change before they are formally legislated.
Three major changes — three different dates
The 2026–27 Federal Budget included three separate measures affecting property and trust taxation. Each has a different commencement date.
Applies to established residential properties acquired from 7:30pm AEST on this date. Properties acquired before that time — including contracts signed but not yet settled — are exempt from the new rules until they are eventually sold.
For assets held more than 12 months, the 50% discount is replaced with cost base indexation, alongside a 30% minimum tax on net capital gains. Eligible new builds and properties in widely held trusts or superannuation funds are subject to different treatment.
Trustees of discretionary trusts will pay a minimum tax rate of 30% on the trust's taxable income. There are reportedly over 900,000 family trusts currently operating in Australia.
These dates and details reflect Budget announcements as reported publicly. Final legislation may differ. Always confirm current status with the ATO or a registered tax agent before relying on these dates for a decision.
Why the government says it's making these changes
According to the government's own stated rationale, the trust tax measure is intended to reduce income splitting between beneficiaries of discretionary trusts and to align tax paid through trust structures more closely with standard income tax rates paid by employees.
The CGT change is described as restoring taxation of real (inflation-adjusted) gains, partially returning to a system similar to the one in place before 1999.
What this article will not do: Tell you whether to keep, restructure, or exit a trust — or whether to buy, sell, or hold a property because of these changes. Those are personal financial decisions that depend entirely on your individual circumstances, and require advice from a qualified tax professional.
Why this matters if you're buying or financing property
Even without giving advice on what to do, it's worth understanding that these changes may influence financing conversations over the next 12–24 months — particularly around timing of purchases relative to the 12 May 2026 cutoff, and how property is held going forward (personal name, trust, company, or other structures).
Whatever structure you and your accountant decide is right for your situation, the lending side of that decision — which lender suits that structure, how income or trust distributions are assessed for borrowing purposes, and what documentation is required — is where a mortgage broker adds value.
If these changes are relevant to a property purchase, sale, or structuring decision you're considering, the appropriate first step is a conversation with a registered tax agent or accountant who can assess your specific situation against the confirmed legislation as it stands. Once you have clarity on the structure and approach that suits you, we're happy to help with the lending and finance side of whatever you decide.