The Federal Budget 2026  has changed the rules for a lot of investors and business owners , especially those in the middle. Not the giants, , but the people who’ve been steadily building wealth through property, shares, and structures like trusts.

And the message from the government is pretty clear: some of the old advantages are being dialled back.

Capital gains tax concessions are being reduced. Negative gearing is being tightened. And discretionary trusts aren’t as tax-friendly as they used to be.

The big one,  trusts are being attacked 

Here’s the key shift.

From 1 July 2028 (the 2029 income year), trustees of discretionary trusts will generally need to withhold tax at a 30% rate on distributions to beneficiaries.

In simple terms, the trust itself becomes the starting point for tax , not just a pass-through vehicle. This is a new approach for Australia, and it’s a pretty big change in how trusts have traditionally worked.

What this really means

When rules like this change, it’s rarely just about numbers. It changes behaviour. And for a lot of people, it means the strategies they’ve relied on for years , the ones that quietly helped build wealth in the background, now need another look.

Not panic. Just a rethink.

Because structures that made sense under yesterday’s rules may not be the best fit going forward.

So what should you do?

If you’ve got investments or business structures in place, this is the time to: understand how you’re set up,
identify where the pressure points are and consider whether anything needs adjusting.

How we are going to help you :)

At Tolevsky Partners, we’ve already come up with  practical solutions for our clients so they’re not caught off guard or disadvantaged when these changes take effect. The focus right now is simple... get ahead of it, rather than react to it.

Once the Government releases the detailed legislation and there’s more clarity around exactly how everything will work, we’ll be in touch.  

We’ll sit down, go through your specific situation, and map out the options available to help manage and minimise the impact of these changes,  in a way that actually makes sense for you.

Remember, there's no rush to anything now because you have a  three-year window (from 1 July 2027 to 30 June 2030) where you may be able to restructure out of a discretionary trust without triggering income tax or capital gains tax.

So for now, sit tight, get your self a coffee and start to  get familiar with the proposed changes by visiting  our Federal Budget Hub.

2026 Federal Budget Hub

Part 1: Negative Gearing Changes 
Part 2: Capital Gains Tax Changes
Part 3: Discretionary trusts minimum 30% tax