Super

There were no major changes to superannuation in this year’s Budget, however there is a boost for low income earners.

• Extra support for lower-income earners

From 1 July 2027, more low-income Australians could get extra support added to their super through an expanded Government payment called the Low Income Super Tax Offset (LISTO).

In simple terms, if you earn up to $45,000, the Government will refund some of the tax paid on your super contributions directly into your super account.

What to do. Make sure your super fund has your tax file number and you lodge your tax return each year so the ATO can check if you’re eligible.

Taxation

New tax changes are on the horizon, offering small boosts to your take home pay and simpler claims at tax time, alongside updates to investment, trust and health rules.

• Small tax cuts are coming (already legislated)

From 1 July, all taxpayers are set to receive modest tax cuts, with another round from 1 July 2027. For most Australians, this could mean a little extra in your pay packet over time.

• Working Australians Tax Offset (WATO) -$250 offset for workers

A new tax offset of up to $250 is proposed for people who earn income from work in the 2027/28 financial year. This will appy to employees and sole-traders. Eligible taxpayers would automatically receive it when lodging their tax return. This is in addition to the modest tax cuts from 1 July 2026 for all taxpayers.

• Claiming work expenses is getting easier

In the new financial year, Employees will be able to claim up to $1,000 in work-related expenses without keeping receipts. If your expenses are higher than $1,000, you can still claim the full amount the usual way with complete records.

• Bigger instant asset write-offs for small business

The Government plans to permanently increase the instant asset write-off threshold to $20,000 from 1 July 2026. For eligible small businesses, this could make it easier to immediately claim equipment, tools or technology purchases at tax time.

• Negative gearing changes for new investment properties

From 1 July 2027, you generally won’t be able to use losses from existing residential investment properties bought after 12 May 2026 to reduce your other income (like your salary). Instead, those losses can only be used against rental income or capital gains from residential property, with any unused losses carried forward to future years.

Properties you already owned before that date, and some newly built homes, are not affected. These changes apply to properties owned personally, or through most partnerships, companies and trusts (but not super funds).

• Changes to capital gains tax (CGT) concessions

From 1 July 2027, a minimum 30% tax will apply to capital gains. This doesn’t apply to people receiving means-tested income support, including the Age Pension.

There are also changes to how capital gains tax (CGT) is worked out. The 50% discount for assets held longer than 12 months will be removed from 1 July 2027. Instead, gains from this date will be adjusted for inflation before tax is calculated. This means you’re generally taxed only on gains above inflation. Assets that you own before the start date will still be eligible to use the 50% discount for any gain accumulated before that time.

These changes apply to individuals, trusts and partnerships. However, investors in eligible new residential properties can still choose between the 50% discount or the indexed method (subject to the minimum tax).

• 30% minimum tax on discretionary trusts

From 1 July 2028, distrectionary trusts will be taxed at a minimum rate of 30%, even if the person receiving the income normally pays a lower tax rate. Not every trust or every type of income is covered, and there will also be a temporary window for people who want to move out of a discretionary trust structure.

• Private health insurance rebates changing for older Australians

From 1 July 2027, Australians aged 65 and over will no longer receive a higher private health insurance rebate based on age. This could increase premium costs for people aged 65 and over.

• Bigger instant asset write-offs for small business

The Government plans to permanently increase the instant asset write-off threshold to $20,000 from 1 July 2026. For eligible small businesses, this could make it easier to immediately claim equipment, tools or technology purchases at tax time.
 

Goverment Support

NDIS changes are on the way to improve fairness and protection, with tighter checks on providers, payments and eligibility over time.

• Pension supplement changes for people overseas

Pension Supplement rules are changing for people overseas. You’ll keep the full amount for up to 12 weeks while temporarily overseas (up from 6 weeks). After 12 weeks, or if you move overseas permanently, the payment stops. The current maximum is $86.50 a fortnight for singles and $65.20 each for couples, to help cover utilities, phone, internet and medicine costs.

What to do. Planning to go overseas? Check how long you’ll be away - short trips may be fine, but longer stays or moving permanently could reduce your Pension Supplement.

• NDIS changes

From April 2026, the Government is introducing changes to the NDIS aimed at improving oversight, consistency and protections across the system. More changes are expected through 2027 and 2028. This could mean tighter checks on providers, payments and eligibility over time.

What to do. If you use the NDIS, keep an eye out for updates as changes are introduced.

Aged care and Home care

More support is on the way for older Australians, with increased aged care funding and some in home services becoming fully covered.

• Changes to home care support

From 1 October 2026, some in-home aged care services (like help with showering and dressing) will become fully funded, meaning eligible Australians won’t have to pay extra for them.

What to do. If you or a loved one receives home care support, ask your provider if your fees could change.

• Additional aged care funding

From 1 July 2026, the Government will provide more funding to aged care services to help improve care and facilities.

What to do. If you use aged care services, keep an eye out for updates from your provider about what may change.