Federal Budget 2026 signals a fundamental shift in Australian wealth strategy

While much attention has focused on the political dimensions of the proposed reforms, the practical reality for investors, business owners and family groups is far more significant: many of the structures and strategies Australians have relied upon for generations may no longer operate as effectively in the future.

The proposed changes to capital gains tax, negative gearing and discretionary trusts are not isolated tax measures. Collectively, they represent a broader philosophical shift away from concession-driven wealth accumulation and toward a more heavily normalised taxation environment.

For advisers, the implications are profound.

The proposed replacement of the CGT discount with indexation, combined with restrictions on negative gearing, fundamentally alters the after-tax economics of leveraged residential property investment — particularly for future acquisitions. At the same time, the proposed 30% minimum tax on discretionary trust income may reshape the role family trusts play in wealth accumulation, succession planning and intergenerational transfer strategies.

Importantly, these changes do not exist in isolation. They sit alongside recent superannuation reforms, including the Division 296 tax measures, meaning advisers and clients are now confronting a far more interconnected strategic environment.

In many respects, this Budget signals a fundamental reset of long-term wealth structuring in Australia.The clients most affected are likely to be:

• Established family groups

• Private business owners

• Property investors

• High-net-worth individuals

• Pre-retirees with complex structures

What becomes increasingly clear is that advice itself is becoming more valuable.

The future winners in this environment are unlikely to be those chasing the next tax concession, but rather those taking a holistic and proactive approach to structure, governance, succession and long-term wealth planning.

There is also an important behavioural element emerging.

Periods of major reform often create uncertainty and inertia. However, they also create planning opportunities, particularly for clients willing to review structures early and adapt strategically over time.

At this stage, the reforms remain proposals only and draft legislation will ultimately determine how these measures operate in practice.

But one thing already appears certain: the conversation around wealth strategy in Australia has changed significantly.

Andrew Miniter, head of tax, Altus Financial