FEDERAL BUDGET 2026–27
—
Tue 12 May 2026 · 7:30pm AEST
Budget night,
in real dollars.
22 measures, every one re-rated against last year's rules. Every calculator on AUS/CALCS now runs the new numbers — re-rated on Budget night, 12 May 2026.
LAST UPDATED12 MAY 2026 · 21:48 AEST
SOURCE · TREASURY BUDGET PAPERS
budget.gov.au
budget.gov.au
PRE-BUDGET RULES
$101,468
net household income · 2025–26 rules
income tax−$33,412
HECS repayment−$5,120
BUDGET 2026 RULES
$105,284
net household income · new rules
income tax−$32,876
HECS repayment−$1,840
NET CHANGE
+$3,816
per year for median payg household, $140k combined
Tax cut + HECS threshold reform, no rate move assumed.
22
measures tracked
9 legislated · 13 announced
9
calculators re-rated
all re-rated 12 May 2026
+$3,816
median household impact
per year, our model
−$5,520
avg HELP debt cut
20% reduction · one-off
$3M
Div 296 super threshold
30% on earnings above
TAX & PAYG
3 MEASURES01
Lower bracket cut to 15%
The rate on income between $18,201 and $45,000 drops by 1pp from 1 July 2026.
BEFORE
16%
AFTER
15%
IMPACT
+$268/yr
→
02
Bracket thresholds frozen
Treasury holds bracket thresholds at 2025–26 levels for two years to fund tax cut.
BEFORE
Indexed
AFTER
Frozen 2yr
IMPACT
−$190/yr
→
03
No LMITO return
Speculation about reinstating the Low/Middle Income Tax Offset confirmed not to proceed.
BEFORE
Discontinued
AFTER
—Discontinued
IMPACT
$0
→
STUDY DEBT
3 MEASURES04
20% HELP debt cut
A flat 20% has been knocked off every HELP / HECS / VSL / SFSS / SSL balance, applied June 2025.
BEFORE
Full balance
AFTER
−20% applied
IMPACT
Avg −$5,520
→
05
HECS threshold lifted
Repayments only begin at $67k, and only on income above the threshold (not total income).
BEFORE
$54,435
AFTER
$67,000
IMPACT
+$800/yr
→
06
Marginal repayments
Cliff edges replaced with a smoother schedule. No more "earn $1 more, owe $850 more".
BEFORE
% of total
AFTER
% above thresh
IMPACT
Variable
→
SUPER
3 MEASURES07
Div 296 (>$3M super)
Earnings on the portion of super balances above $3M are taxed at 30% from 1 July 2026.
BEFORE
15% earnings
AFTER
30% earnings
IMPACT
High-bal only
→
08
SG rate steady
Superannuation Guarantee remains at 12% — no further legislated rises in this Budget.
BEFORE
12.0%
AFTER
—12.0%
IMPACT
$0
→
09
Payday super
Employers must pay SG on the same day as wages. ATO modelling: ~$7.7k more super at retirement for a 25-year-old on average earnings.
BEFORE
Quarterly
AFTER
Per pay cycle
IMPACT
+~$7,700 lifetime
→
HOUSING
4 MEASURES10
CGT discount
From 1 July 2027 the 50% discount is replaced with inflation indexation plus a 30% minimum tax. Assets held on 30 June 2027 keep the discount on gains accrued to then; new builds can choose either.
BEFORE
50% discount
AFTER
Indexation +30% min
IMPACT
From Jul 2027
→
11
Negative gearing
From FY 2027–28, losses on established housing contracted from 7:30pm AEST 12 May 2026 offset only rental income and capital gains, not wages. Earlier purchases are grandfathered; new builds are unaffected.
BEFORE
Unrestricted
AFTER
New builds only
IMPACT
From Jul 2027
→
12
Help-to-Buy expanded
Federal shared-equity scheme enlarged. Buy with as little as 2% deposit; government takes up to 40% equity stake.
BEFORE
40k places
AFTER
60k places
IMPACT
Deposit −60%
→
13
NSW FHB threshold
Full stamp duty exemption now applies up to $800,000 (was $650,000). Concession to $1,000,000.
BEFORE
$650k full
AFTER
$800k full
IMPACT
Up to −$31,540
→
COST OF LIVING
3 MEASURES14
Energy bill relief
Universal $300 energy rebate replaced with a smaller $150 universal payment plus a targeted top-up for concession card holders.
BEFORE
$300 rebate
AFTER
$150 + targeted
IMPACT
−$150/yr
→
15
Bulk-billing incentives
Tripled bulk-billing incentive extended from concession card holders to all patients.
BEFORE
Pensioners only
AFTER
All Australians
IMPACT
Bulk-bill +20pp
→
16
PBS script cap
Maximum patient co-payment for general PBS scripts cut to $25 from 1 January 2027.
BEFORE
$31.60
AFTER
$25.00
IMPACT
−$80/yr
→
FAMILIES
2 MEASURES17
Childcare subsidy
CCS taper removed. Flat 90% subsidy up to combined income of $533k.
BEFORE
90% (taper)
AFTER
90% flat to $533k
IMPACT
+$2,400/yr avg
→
18
Paid parental leave
Government-funded PPL stretches to 26 weeks. Both parents can take leave concurrently.
BEFORE
22 weeks
AFTER
26 weeks
IMPACT
+~$6,400 per child
→
BUSINESS
2 MEASURES19
Instant asset write-off
Threshold lifted to $30k per asset. Made permanent for three years — finally.
BEFORE
$20k (1yr)
AFTER
$30k (3yr)
IMPACT
Cash-flow boost
→
20
Energy efficiency grants
Grants for solar, batteries and efficient appliances. Application portal opens 1 Aug 2026.
BEFORE
Nil
AFTER
Up to $25k
IMPACT
Up to $25k grant
→
RATES & WELFARE
2 MEASURES21
Implied RBA path
Treasury’s Budget assumes one further cut to 3.85% by year-end. Markets price two.
BEFORE
4.10% peak
AFTER
3.85% by Dec
IMPACT
+$2,160/yr
→
22
JobSeeker indexation
Base rate gets a $20/week real lift on top of indexation, applied 20 September 2026.
BEFORE
CPI
AFTER
CPI + $20/wk
IMPACT
+$1,040/yr
→
Editorial
Our take on the numbers, written on Budget night as we read into the papers.
★ TAKE
The cheapest tax cut Treasury has ever sold.
$268 a head, paid for by two years of frozen thresholds. Most households will hand the saving back through bracket creep before 2028 — but it lets the government claim a tax cut without breaking the surplus. Politically clever, fiscally cynical.
A. Park · Tax editor
★ WATCH
Payday super is the sleeper of the night.
It barely got a line in the speech but the compounding maths is brutal: paying SG fortnightly instead of quarterly is worth $7,700 of extra balance to a 25-year-old. The biggest super reform since SG itself, smuggled in as plumbing.
M. Liu · Super editor
★ CALL
Negative gearing reform: legislated, from FY 2027–28.
Correction, 2 October 2026: this take originally said reform had been ruled out. It was not. The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 limits negative gearing on established homes contracted from 7:30pm AEST 12 May 2026, from the 2027–28 income year. Properties held before then, and new builds, keep it.
D. Singh · Property editor
★ NUMBERS
The household that loses on Budget night.
Two earners, $180k combined, $600k mortgage, $300 energy bill in winter. Tax cut: +$536. Energy rebate: −$150. RBA optimism is doing a lot of work to keep this household above water.
S. Reilly · Data editor
Re-rated calculators
Every calculator we maintain that touched a Budget number was re-rated on 12 May 2026.
RE-RATED 12 May 2026
Tax comparison
/budget-2026/tax-comparison
+$268 →
RE-RATED 12 May 2026
HECS impact
/budget-2026/hecs-impact
Avg −$5,520 →
RE-RATED 12 May 2026
CGT scenarios
/budget-2026/cgt-changes
No change →
RE-RATED 12 May 2026
Full impact calculator
/budget-2026/impact-calculator
Personalised →
RE-RATED 12 May 2026
Mortgage repayment
/mortgage/repayment
New RBA path →
RE-RATED 12 May 2026
NSW stamp duty
/stamp-duty/nsw
New FHB cap →
RE-RATED 12 May 2026
Childcare subsidy
/family/ccs
90% flat →
RE-RATED 12 May 2026
Div 296 (super)
/super/div-296
30% earnings →
RE-RATED 12 May 2026
Instant asset write-off
/business/instant-asset
$30k threshold →
How it lands by household
Eight pre-built profiles. Each opens the full impact calculator.
★ HOUSEHOLD
Living alone
Single renter · 31 · $75k
+$3,660/yr
Income tax cut+$268
HECS threshold lift+$800
HECS 20% reduction+$2,592 (one-off, amortised)
★ HOUSEHOLD
Couple, no kids
DINK · $180k combined
+$1,976/yr
Tax cut × 2+$536
HECS reform (James)+$1,440
Bracket freeze−$0 (no creep yet)
★ HOUSEHOLD
Family, young kids
Couple + toddler · $140k
+$4,136/yr
Tax cut × 2+$536
Childcare subsidy lift+$2,400
PBS cap+$80
Energy rebate cut−$150
HECS reform (Laura)+$1,270
★ HOUSEHOLD
Family, mortgaged
Family + $600k mortgage
+$2,456/yr
Tax cut × 2+$536
RBA easing path+$2,160
Energy rebate cut−$150
Childcare 90% flat−$0 (over cap)
PBS cap+$80
★ HOUSEHOLD
Single mother
Single parent · $60k
+$1,186/yr
Tax cut+$268
HECS threshold lift+$800
JobSeeker top-upn/a
PBS cap+$80
Energy rebate cut−$150
Childcare flat 90%+$188
★ HOUSEHOLD
Retired
Retired · 70 · $500k super
+$130/yr
Div 296$0 (under $3M)
Bulk-billing+$50
PBS cap+$80
Pension indexationunchanged
★ HOUSEHOLD
Sole trader
Sole trader · $95k
+$1,318/yr
Tax cut+$268
Instant asset $30kcash-flow
Energy efficiency grantgrant
★ HOUSEHOLD
$3M+ super
High-balance super · $4M
−$1,500/yr
Div 296 on $1M earnings−$1,500/yr
Tax cut+$268
Frequently Asked Questions
When is the 2026-27 Federal Budget?
The 2026-27 Federal Budget was delivered by Treasurer Jim Chalmers on Tuesday 12 May 2026 at 7:30pm AEST. All calculators on this page have been updated with confirmed figures.
What tax changes are confirmed for 2026-27?
Two changes are legislated for 2026-27. The tax rate on income between $18,201 and $45,000 drops from 16% to 15% from 1 July 2026. This saves every taxpayer earning above $45,000 exactly $268 per year. If you earn between $18,201 and $45,000, your saving is 1% of income above $18,200. And a $1,000 standard deduction for work-related expenses applies from the 2026-27 income year, under the Treasury Laws Amendment (Tax Reform No. 1) Act 2026.
What is the HECS debt reduction?
The Government has already legislated a 20% reduction in all HELP (HECS) debt balances. If you owed $40,000, your balance is now $32,000. The repayment threshold has also been raised to $67,000 and repayments are now calculated on income above the threshold, not total income. This means many Australians earning below $67,000 will make no repayments in 2026-27.
Did CGT or negative gearing change in the 2026-27 Budget?
Yes — both were confirmed on 12 May 2026. Both are now law, in the Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (assented 26 June 2026). CGT: from 1 July 2027 the 50% discount is replaced with inflation indexation plus a 30% minimum tax. Assets held on 30 June 2027 keep the 50% discount on gains accrued to that date; later gains are indexed. New builds can choose between both systems. Negative gearing: from the 2027-28 income year, losses on established homes contracted from 7:30pm AEST on 12 May 2026 can only be offset against residential rental income and capital gains, not wages. Properties held before then are grandfathered, and new builds are unaffected. Use the CGT calculator above to model your position.
Disclaimer: These calculators provide estimates based on measures confirmed in the 2026-27 Federal Budget (12 May 2026). Figures are estimates — actual outcomes depend on individual circumstances and implementing legislation. Not financial advice.
Sources: Australian Taxation Office, Department of Education (HECS-HELP rates), Treasury Budget papers available at budget.gov.au.
Sources: Australian Taxation Office, Department of Education (HECS-HELP rates), Treasury Budget papers available at budget.gov.au.