2026 Federal Budget and SMSF property investment

With the 2026 Federal Budget now handed down, attention has turned to proposed changes across property investment and what they mean for SMSFs.

Key takeaways for SMSFs:

• Capital Gains Tax (CGT): Complying SMSFs will continue to benefit from the current CGT framework. Assets held for more than 12 months remain eligible for the one-third discount, resulting in an effective tax rate of 10% on capital gains. The proposed indexation method will not apply to SMSFs.
• Negative Gearing: Rental losses will continue to be used to reduce other forms of taxable income within the SMSF.
• Trust tax measures: SMSFs are excluded from the proposed 30% minimum tax on trusts.

What does this mean for your clients?

The unchanged tax treatment reinforces the stability of SMSFs as an investment structure.

As broader reforms reshape incentives for individual investors, established residential property is likely to become increasingly appealing within SMSFs - where existing CGT and negative gearing benefits remain in place. By comparison, individuals may need to focus on newly built properties to access similar advantages under the proposed rules.

Structuring SMSF opportunities with Elevate

With specialist SMSF support in place, we’re ready to help you identify and structure opportunities for your clients. Connect with your Elevate BDM for any SMSF scenario support today!

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