Federal Budget May 2026 Insights & Updates For Munro’s Clients

Published on 24 May 2026 by Tash Wheat
Categories: Insights & Updates

This month for you we have the following Budget May 2026 Insights & Updates:

Personal Taxation

• Personal tax rates: existing cuts for 2026–2027 and 2027–2028 unchanged
• Low income tax offset (unchanged)
• Standard $1,000 deduction for work-related expenses from 2026–2027
• New $250 working Australians tax offset from 1 July 2027
• Medicare levy low-income thresholds for 2025–2026
• Private health insurance rebate cut for those aged 65 and over

Business Taxation

• Instant asset write-off for small businesses permanently extended
• Reintroduction of the loss carry-back regime
• Loss refundability for small start-up companies
• Expansion of dynamic monthly business tax payments from 1 July 2027
• Changes to FBT exemption for electric vehicles

Major CGT, Trusts and Negative Gearing Reforms

• CGT discount replaced; minimum 30% tax on net capital gains
• Minimum tax of 30% on discretionary trust taxable income from 1 July 2028
• Negative gearing limited to new builds from 2027

Superannuation

• No major new super measures announced