Insights

Australian Federal Budget 2026-27: Corporate Tax Measures

Rhys Jewell 15 May 2026

An analysis by Corrs Chambers Westgarth, Taxand Australia

The Australian 2026–27 Federal Budget was recently released, detailing new corporate tax measures.

Hailed by Treasurer Jim Chalmers as “the most important and ambitious Budget in decades”, the biggest changes centre on capital gains tax (CGT) and trusts. In particular:

• The move from the 50% CGT discount to indexation, alongside a 30% minimum tax on capital gains
• The broad application of these CGT changes to all asset classes (other than new residential property), including the removal of the effective grandfathering for pre-1985 (pre-CGT) assets on a prospective basis
• Transitional timing issues, including the 1 July 2027 start date and the need for valuations or apportionment at that point
• The introduction of a 30% minimum tax for discretionary trusts
• No material concessions or softening of the proposed non-resident CGT measures (including continued retrospectivity)

Cameron Blackwood, Angelina Lagana, Rhys Jewell, Simon Misfud, Hugh Riisfeldt, Pavithra Ratnalingam, and Michael Gotze from our Australian member firm Corrs Chambers Westgarth provide a detailed analysis of the latest corporate tax measures, which you can read in full here.

Article tags

Australia | Budget | Corporate Profit Tax | Tax Reform