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The 2026 Budget landed last night and if you own property, hold shares, earn through a trust, or plan to do any of the above, this is the one that matters.
Pick & Scroll News
May 13, 2026
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Good morning. The 2026 Budget landed last night and if you own property, hold shares, earn through a trust, or plan to do any of the above, this is the one that matters.
Negative gearing on existing properties is gone from July 2027, the 50% CGT discount has been scrapped, and discretionary trusts are getting a 30% minimum tax from 2028.
Whether this budget actually rebalances the system or just reshuffles who pays for it depends on what gets built between now and 2028.
All the headlines and more below...
BUDGET ABOLISHES NEGATIVE GEARING FOR ESTABLISHED PROPERTY. IT STARTS IN 15 MONTHS.
From July 2027, investors who buy existing homes won't be able to write rental losses off their salary. They can only claim them against rental income or the eventual capital gain when they sell. Losses can roll forward, but not sideways into your tax return. New builds are exempt. So are existing investors until they sell.
1 in 3 negatively geared properties sold in 2022-23 paid less tax over the investment's life than if the investor had never bought it - despite turning a profit.
Treasury says it'll shave 2% off house price growth over a couple of years and help an extra 75,000 first home buyers into the market by 2037. The change took effect at 7.30pm on budget night to stop a rush. Together with cuts to the capital gains tax discount, it raises $3.6B in the first three years. The top 30% of earners claimed 71% of the benefit.
The government had ruled out changes to negative gearing during the 2025 campaign.
AUSTRALIAN NEWS
Australian consumer brands including Coles and Woolworths have seen net positive sentiment fall to 29% and 31% as Middle East conflict driven cost pressures fuel price rise fears. LINK
The government has unveiled federal budget plans to reform negative gearing, capital gains tax and trusts to help 75,000 Australians buy their first home over 10 years. LINK
The federal budget has introduced a $250 annual Working Australians Tax Offset for 13.3 million workers from FY28 while tightening negative gearing and capital gains tax concessions. LINK
The government has upgraded its net overseas migration forecasts to 295,000 in 2025-26 and 245,000 in 2026-27 as it extends the temporary migrant property ban to 2029 and revamps skilled visas. LINK
The federal government has unveiled capital gains tax changes that impose a minimum 30% rate from mid-2027, scrap the 50% discount, index gains to inflation and rope in pre-1985 assets. LINK
The federal budget has made superannuation the most tax-effective wealth-building option as new 30% minimum taxes on capital gains and family trusts compare with super’s 15% and 0% rates. LINK
WORKERS GET $250 WHILE INCOME TAX AS A SHARE OF GDP HITS A 30-YEAR HIGH.
Every Australian who earns a wage will receive a tax offset of between $200 and $300 from 2027 under tonight's federal budget. But the relief is dwarfed by the broader trajectory: income tax as a share of GDP is forecast to reach its highest level in three decades.
Income tax as a share of GDP is forecast to hit its highest level in 30 years.
The offset will be funded in part by changes to negative gearing, capital gains tax and family trusts. Negative gearing will be limited to new builds only from July 2027. The CGT discount drops from 50% to a rate linked to inflation, with a minimum 30% tax imposed. Properties built before 1985, previously exempt from CGT entirely, will now be taxed at the inflation-adjusted rate. Homes purchased before the announcement are grandfathered until sold.
The government expects the changes to help 75,000 young Australians enter the property market over the next 4 years. Treasurer Jim Chalmers said it will "rebalance a system which is more generous to assets than it is to labour."
COMPANY NEWS
Optiver Australia has paid its 443 employees an average of about $1.42M each as employee benefits expenses reached $629.9M and post-employment benefits totalled $50M. LINK
Formula One is deepening its partnership with AWS to power rapid, data-driven experimentation on cars that function as perpetual prototypes under constantly evolving regulations. LINK
OpenAI and Microsoft have agreed to cap total revenue-sharing payments at US$38B as they renegotiate their deal and OpenAI prepares for a possible public offering. LINK
The Yindjibarndi people have been awarded US$150.1M in native title compensation from Fortescue after its Solomon Hub mines destroyed 124 sacred sites and damaged their culture. LINK
ASIC has launched a formal investigation into DroneShield over November 2025 disclosures and share trading as former leaders sold about US$67M-US$70M of stock, triggering sharp share price falls. LINK
Life360 raised its FY24 EBITDA and revenue guidance after a strong Q1 with US$143.1M revenue and US$17.1M adjusted EBITDA, while technical issues cut quarterly user additions to 1.9M. LINK
LG and Greater Homes are piloting AI-powered modular prefab homes that fuse offsite construction with smart energy management to cut household power bills to near zero. LINK
IAG unveiled a refreshed 2030 strategy targeting over 11 million customers and more than $25B gross written premiums as it completes a multi-year technology simplification journey. LINK
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TRIVIA
How many time zones do the below countries have? Mainland only (not territories).
Australia
China
India
United Kingdom
Canada
Answers below
OUR SOCIALS
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ANSWERS
1. Australia: 3
2. China: 1
3. India: 1
4. United Kingdom: 1
5. Canada: 6
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