Tax Law and International Tax Law

The 2026-27 Federal Budget faces the challenge of balancing ambition with caution amid geopolitical and economic uncertainty. With rumoured reforms to capital gains tax discounts, trust taxation, and negative gearing on the table, businesses are seeking clarity on policy settings that could fundamentally reshape investment structures and tax planning strategies. Will the government pursue transformative reform or opt for measured adjustments to strengthen national resilience?

Australia's proposed capital gains tax reforms may inadvertently undermine government efforts to strengthen sovereign defence capability and innovation. As the nation faces increasing global instability and supply chain vulnerabilities, changes to the CGT regime could discourage investment in defence-focused startups precisely when such investment is most critical to national security objectives.

The 2026 Federal Budget introduces a fundamental shift in Australia's tax treatment of pre-CGT assets, ending decades of tax-free capital growth from 1 July 2027. This change, combined with broader property tax reforms including the removal of negative gearing on existing properties and the 50% CGT discount...