Tuesday night’s Australian Federal Budget (2026–27) was framed around cost-of-living relief, tax reform and better access to housing and healthcare, set against a backdrop of global uncertainty and rising inflation.
At Beyond Bank, we know these decisions aren’t just economic - they affect real people, families, and communities.
Here’s a summary of the key elements of the Budget and what they may mean for you today, and what to watch in the months ahead.
Like all Federal Budgets, this one contains a myriad of changes. So, depending on your circumstances there may be other changes that affect you. The full Budget documents are available if you want to read about all the changes.
The big picture.
Some tax relief is coming, but much of it is delayed.
- Lowering the first marginal tax rate from 16% to 15% from 1 July 2026
- A $1,000 instant tax deduction for work related expenses from the 2026/27 tax year
- Lowering the first marginal tax rate from 15% to 14% from 1 July 2027
- A new $250 annual tax offset starting in the 2027/28 tax year.
Housing reforms aim to improve affordability and access, but they will take time to flow through.
- Changes to negative gearing will apply to new investment properties from 1 July 2027, with existing properties grandfathered under existing arrangements
- Removal of the 50% capital gains tax discount on investment properties sold on or after 1 July 2027.
Healthcare investment increases, some medicines should be cheaper, but some costs shift to individuals.
- An extra $25b to hospital funding
- $1.8b funding for Medicare Urgent Healthcare Clinics
- Reduction in the maximum cost of Pharmaceutical Benefits Scheme medicines to $25 per prescription and PBS medicines for concession card holders fixed at $7.70 per prescription until 2030
- Removal of the private health insurance subsidy for over 65’s which could cost older Australians between $200 and $300 each year.
Fuel costs likely to increase from 1 July 2026 as temporary relief ends.
- The fuel excise was temporarily cut by 50% or 26.3c per litre on 1 April 2026
- Expect fuel prices to increase by about 26.3c when the relief ends on 1 July 2026.
Changes to National Disability Scheme (NDIS).
- Tighter NDIS eligibility rules, stronger fraud controls and a clearer focus on people with permanent and significant disability are expected to reduce costs by $37.8b over 4 years
- This helps secure the scheme for the future, but it will have impacts. Around 160,000 fewer people are expected to be on the NDIS over time which could mean reduced access to support, increasing reliance on carers, community services and local organisations.
These Budget changes are designed to support Australians today, while also shifting the system to be more equitable across generations.
What it means for young Australians (students, early career, first home buyers).
For many younger Australians, the biggest concerns are housing access and affordability and financial pressure from cost-of-living increases.
What this Budget means.
Housing reform is front and centre.
- Changes to investor tax settings, such as limiting negative gearing to new homes and reducing capital gains tax concessions, are designed to improve access for first home buyers over time
- Investment in housing infrastructure aims to support new supply and more homes
- The intent is to “level the playing field” between property investors and first home buyers.
Limited short-term cost-of-living and tax relief.
- Tax changes outlined above provide limited short-term relief and are delayed
- Young people that aren’t working or don’t have stable employment won’t benefit from these changes.
The bottom line.
- Structural change to the housing system is the main benefit. This is expected to see increased housing supply, and greater fairness between first home buyers and property investors
- Short term cost of living relief is limited, especially for non-workers.
What it means for mid-life Australians (working families, mortgage holders).
Mid-life Australians are often juggling mortgages, work and raising families. Financial pressure from cost-of-living increases can be acute. Income support, tax relief, childcare, housing and cost-of-living pressures are all key issues.
What this Budget means.
Limited short-term cost-of-living and tax relief.
- Tax changes outlined above provide limited short-term relief and are delayed
- Higher Medicare Levy thresholds so low-income households will pay less or no levy
- Cheaper healthcare and medicines.
Housing system changes.
The impact of changes to the housing system including limiting negative gearing and reducing capital gains tax concessions will be mixed for mid-life Australians, depending on their circumstances.
- Those still to buy their first home should benefit from less competition between renters, first home buyers and property investors and from increased housing supply
- Those who already own a home may see lower growth in the value of their home over the medium to long term
- Those who have already invested in property and utilise tax benefits of negative gearing will be able to continue this under proposed grandfathering rules but will be subject to the reduced capital gains tax concessions when they eventually sell investment property.
Increased investment in healthcare.
- Increased funding for hospitals and healthcare services.
The bottom line.
- Structural change to the housing system will have mixed outcomes for mid-life Australians, which is a deliberate attempt by the government to increase intergenerational equity and fairness
- There is some short-term cost of living relief, but it is limited and delayed.
What it means for older australians (pre-retirees, retirees, pensioners).
For most older Australians, the key issues are healthcare, retirement income and cost-of-living stability.
What this Budget means.
Stronger investment in health and aged care.
- Increased funding for hospitals and aged care services
- Expanded aged care support and services.
Changes to private health insurance.
- The private health insurance subsidy for people over 65 will be removed from 2027. This means older Australians may face higher premiums and out-of-pocket costs.
Mixed tax outcomes.
- Many retirees won’t benefit from the proposed $250 worker tax offset and other tax relief measures outlined above.
Changes to investment settings.
- New capital gains tax rules and trust tax arrangements may affect retirement income strategies of some older Australians.
The bottom line.
Older Australians will probably:
- benefit from increased spending on healthcare and aged care
- experience increased private health insurance premiums
- get less benefit from tax cuts, which are primarily focused on workers
- need to consider the impact on investment income planning.
In summary:
Across all groups, a few themes stand out.
1. Cost-of-living and tax relief is real - but gradual.
Support is being delivered, but not all of it will be felt immediately, especially with some tax changes phased in over time.
2. Housing reform is a long-term shift.
The changes aim to improve fairness, particularly for younger Australians - but real benefits will take time to flow through.
3. Health and care remain a priority.
Increased investment reflects the growing importance of accessible healthcare for all Australians. But for older Australians, private health insurance costs will increase as the current subsidy is removed.
4. NDIS reforms could shift pressure into communities.
Changes to the NDIS will reduce cost but could create additional pressure for individuals, families and community organisations.
Our perspective.
At Beyond Bank, we see the impact of these pressures every day through the people and communities we serve. This Budget reinforces something important: Financial wellbeing isn’t just about income - it’s about fairness, access, and support across every stage of life. Whether it’s a young person trying to enter the housing market, a family managing rising costs or someone planning for a secure retirement.
What matters most is how these changes play out in your day-to-day finances – and how prepared you are for what comes next. At Beyond Bank, we’re here to help you navigate that with confidence.
Please read this important information
This is general information only that has been prepared using information that was publicly available at the time it was prepared. It has been prepared without taking into account your particular objectives, financial situation and needs. Before making an investment decision, you should assess your own circumstances or consult a financial planner. The tax information provided in this document is a general statement and does not constitute tax advice. We recommend that you seek independent tax, legal and/or financial advice where appropriate. We accept no responsibility for its accuracy or completeness of the information provided.
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