Budget 2026 and Your EOFY Plan: Why 30 June 2027 Is the Bigger Date
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Primary tax-year context: 2025-26
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The Federal Budget handed down at 7:30 PM AEST on 12 May 2026 made surprisingly few changes to the actions worth taking before 30 June 2026. But it turned the EOFY one year later — 30 June 2027 — into the most consequential single tax planning date in a generation. This article maps both windows.
30 June 2026 EOFY — what changed (very little)
The lever-by-lever picture for your 2025-26 tax return:
| Measure | Status post-Budget | EOFY 2026 action |
|---|---|---|
| Personal income tax brackets | No new change | Second-bracket rate falling from 16% → 15% from 1 July 2026 was already legislated. Bring forward deductions if your 2025-26 marginal rate is higher. |
| Medicare Levy low-income thresholds | Raised 2.9% retroactive to 1 July 2025 | Singles $28,011, family $47,238, senior single $44,268, senior family $61,623, +$4,338/dependant. Already reflected in your 2025-26 return. |
| Concessional super cap | $30,000 — unchanged | Use 2019-20 carry-forward room before it expires 30 June 2026 (TSB must be <$500,000). |
| HELP minimum threshold | No Budget change; ATO will publish CPI-indexed value | Voluntary repayments before 1 June 2026 reduce 2026 indexation as usual. |
| IAWO | Permanently $20,000 from 1 July 2026 | For 30 June 2026 you can still claim $20k IAWO under the temporary measure. Asset must be installed and ready-for-use. |
| MLS singles tiers | No Budget change ($101k / $118k / $158k carried) | If close to a tier boundary, deductible super or expense bring-forward still effective. |
| CGT 50% discount | Unchanged for 2025-26; reform takes effect 1 July 2027 | Full 50% discount available for the 2025-26 income year. No grandfathering urgency for 30 June 2026. |
| Negative gearing | Unchanged for 2025-26; reform takes effect 1 July 2027 with grandfathering | Properties held at 7:30 PM 12 May 2026 are grandfathered forever. No 30 June 2026 action required. |
| $1,000 Instant Tax Deduction | Starts 2026-27 income year | NOT available on your 2025-26 return (lodged from July 2026). Available the year after. |
| $250 Working Australians Tax Offset | Starts 2027-28 income year | Not available on either the 2025-26 or 2026-27 return. |
The headline: most existing EOFY 2026 strategies still apply unchanged. Pre-pay deductible interest, top up concessional super, donate to DGRs, run a logbook — none of the standard moves were affected by Budget 2026.
30 June 2027 — the cutoff year
The reform package announced 12 May 2026 takes effect 1 July 2027. That makes 30 June 2027 the last day of:
- The 50% CGT discount as a whole-of-gain concession. From 1 July 2027, only the pre-1 July 2027 portion of a gain on an existing asset retains the 50% discount; the post-1 July 2027 portion uses CPI cost base indexation + 30% minimum tax. See CGT Discount Reform: Cost Base Indexation Explained.
- Full-rules negative gearing for established residential property bought after 12 May 2026. Properties in the transitional bucket (purchased between 12 May 2026 7:30 PM and 30 June 2027) can be negatively geared against salary only until 30 June 2027. From 1 July 2027, losses can only offset other residential property income, with excess carrying forward. See Negative Gearing Reform: 4-Bucket Explainer.
- Discretionary trust distributions at marginal rates only. From 1 July 2028, a 30% minimum tax applies to discretionary trust income (with rollover relief available from 1 July 2027 for restructure). 2026-27 is the last full year of unchanged trust planning.
What 30 June 2027 actually triggers
| Asset type | Action that locks in old rules |
|---|---|
| Existing investment property (held at 7:30 PM 12 May 2026) | Nothing — grandfathered forever. Continue current strategy. |
| Investment property bought 12 May 2026 7:30 PM → 30 June 2027 | Negative gearing against salary stops 1 July 2027. Consider whether positive gearing or new-build alternative makes more sense. |
| Long-held shares with large unrealised gain | Selling before 30 June 2027 locks in 100% of the gain at the 50% discount rate. After that date, only the pre-1 July 2027 portion retains the discount. |
| Long-held investment property considered for sale | Same as shares. Plus: factor in real return rate — for 5%+ growth assets, new rules cost more tax; for sub-2.5% growth assets, new rules can cost less. |
| Discretionary trust holding investment assets | Consider whether restructure to a fixed trust or company makes sense ahead of 1 July 2028 trust min tax. Rollover relief available 1 July 2027 – 30 June 2030. |
Worked sequencing: a long-held property example
Suppose you bought an investment property in 2020 for $700,000. By July 2027, its value is $1,100,000 (your $400,000 unrealised gain). The choices:
Option 1: Sell before 30 June 2027.
- Whole gain $400,000 × 50% discount = $200,000 taxable.
- At 47% marginal rate: $94,000 tax.
- You exit the property fully grandfathered (no Bucket A handling needed) and have cash.
Option 2: Hold and sell in 2032 (5 years post-policy).
- Property value at 1 July 2027 = $1,100,000. Assume sale at $1,400,000 in 2032 → total gain $700,000.
- Pre-1 July 2027 portion ($400,000): 50% discount → $200,000 taxable.
- Post-1 July 2027 portion ($300,000 nominal): cost base indexed at 2.5% CPI/yr × 5 yrs ≈ $144,000 inflation uplift → real gain ~$156,000. Subject to new rules without 50% discount.
- Total taxable: ~$356,000. At 47%: ~$167,000 tax.
The choice depends on your expected return path, marginal rate in each year, and whether you genuinely want to exit. The CGT Scenario Compare tool models the trade-off at your numbers.
EOFY 2026 still matters — just not for grandfathering
The standard 30 June 2026 actions remain valuable:
- Top up concessional super contributions before 30 June 2026. Cap is $30,000; carry-forward from 2019-20 expires this EOFY (TSB <$500,000).
- Prepay deductible interest on investment loans for up to 12 months in advance.
- Donate to DGRs before 30 June for an immediate-year deduction.
- Income-protection insurance premiums prepaid 12 months ahead.
- Logbook compliance if claiming car expenses on the actual-cost or logbook method.
- WFH records for the 67c/hr fixed rate method.
These remain the highest-value EOFY 2026 moves. None changed due to Budget 2026.
EOFY 2027 add-ons (forward planning)
Beginning your 2026-27 EOFY planning earlier than usual now has explicit returns:
- Crystallise gains on long-held appreciating assets before 30 June 2027 if your sale timeline is anywhere near that window.
- Run new-build analysis for any property purchase you are considering in the 2026-27 financial year — eligibility carries forward, and the rules differ markedly from established property post-1 July 2027.
- Discretionary trust restructure consultation if you operate through one and would prefer a company or fixed trust before the 1 July 2028 minimum tax.
What to use the calculators for
| Question | Calculator |
|---|---|
| How much tax will I save with the $1k instant deduction in 2026-27? | Income Tax Calculator — toggle 2026-27 |
| If I sell this property before 30 June 2027, what’s the tax? | CGT Calculator |
| Compare selling now vs 5 years post-policy | CGT Scenario Compare |
| Is my property cash-flow positive or negative under new rules? | Investment Property Calculator |
| How does the new-build exemption change my purchase decision? | Negative Gearing Calculator |
| Should I run unused concessional carry-forward this EOFY? | Super Carry-Forward Calculator |
Related reading
- Budget 2026 Explained: Winners and Losers by Persona — flagship Budget 2026 analysis.
- Negative Gearing Reform: What Changed by Purchase Date — 4-bucket explainer with grandfathering rules.
- 50% CGT Discount Reform: Cost Base Indexation Explained — paired CGT changes with worked examples.
- Federal Budget 2026 Summary — measure-by-measure list.
- Tax Changes 2026-27 Australia — salary-by-salary impact table.
Sources
- Treasury Budget Paper No. 1, Statement 4: Tax reform for workers, businesses and future generations (12 May 2026)
- Treasury Budget Paper No. 2 — Tax Measures (12 May 2026)
- Treasury fact sheet: Negative Gearing and Capital Gains Tax Reform
- Treasury fact sheet: New Tax Cuts for Australian Workers
- ATO Federal Budget 2026 announcement page