Important: On 23 June 2026 the Government announced it has agreed to a range of amendments to secure Greens support for the Federal Budget, including a proposed ban on new SMSF limited recourse borrowing arrangements (LRBAs) used to acquire residential property. Existing arrangements would be grandfathered.
The measure has now been legislated.
Jim Chalmers delivered his fifth Federal Budget on 12th May 2026, heralding it “the most important and ambitious Budget in decades”
While much has happened since last year’s Budget, the bugbears are still the same – cost of living pressures, inflation and global uncertainty. The key difference is that last year’s budget was just before the election – hence why the government can be more ambitious.
The ambition is for property tax reform, targeted at getting younger generations on the property ladder. The measures will only allow negative gearing on new homes and reduce the capital gains tax (CGT) discounts for established homes.
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