Less to pay at tax time
Two new tax measures aim to reduce what you pay:
- From 1 July 2026: You may be able to claim an instant $1,000 deduction for work-related expenses – no receipts needed.
- From 1 July 2027: You’ll get up to $250 annual tax offset on income earned from work, directly reducing your tax bill.
What that means: Less paperwork at tax time and a lower tax bill overall. It’s not a huge boost on its own, but if you put a tax refund into a high-interest savings account, those extra dollars could build into something more meaningful over time.
Support for first home buyers
The Budget proposes major changes to negative gearing and capital gains tax, aimed at scaling back tax advantages for property investors and helping first-home buyers.
From 1 July 2027, negative gearing will be limited to new builds, meaning investors buying existing properties will no longer be able to offset rental losses against their wages. Importantly, existing investment properties remain largely unchanged, with current rules applying to homes already owned.
At the same time, the 50% capital gains tax discount will be replaced with a system that adjusts for inflation, alongside a minimum 30% tax on gains.
Together, these changes are designed to shift investor demand toward new housing, rather than competing with first-home buyers for established homes.
The Budget also lifts total government investment in housing to a record $47 billion.
What that means: Less tax incentive for investors to buy existing homes, more focus on building new supply, and potentially less competition at auctions. It won’t change the market overnight, but over time it could improve your chances of getting into your first home.
Social housing and bulk-billed doctor visits
The Government is investing $59.4 million to help Community Housing Providers deliver social housing for more than 4,000 young people aged 16–24 who are at risk of or are currently experiencing homelessness.
There’s also a major healthcare push, with an $11.4 billion investment to expand bulk billing, aiming for 9 in 10 GP services to be bulk billed by 2030.
What that means: A bit more support where it matters, whether that’s finding stable housing or seeing a doctor without the extra cost.
Turn Budget wins into new money habits
Tax cuts and policy changes can go further when you make the most of the extra cash coming in. What really matters is what happens when your pay hits your account. Smarter habits can help you stay on top of spending, build savings more consistently, and keep more of your money working for you at a time when every dollar counts.
Ubank offers money management tools that are designed to give you clarity, control and confidence so you can stay one step ahead from payday to payday.
- See it all in one place. By keeping your money together, you get a clearer view of what’s coming in, what’s going out, and how far it needs to stretch between pays.
- Use a separate Bills account to set aside money for rent, energy, phone, streaming and the rest, so the money in your Spend account is free to spend.
- Let Bill Planner do the maths it helps to forecast your upcoming bills and tells you how much to move across each payday, so nothing sneaks up on you.
- Funnel your tax refund straight into a Save account, where it may be eligible to earn bonus interest by meeting the criteria, including growing your combined Save account balances by at least $1 each month. For more information please go to https://www.ubank.com.au/banking/savings-account
Interest only payable on total savings up to $1M where bonus criteria are met. Products issued by Ubank, part of NAB. Info is general. Consider if it’s right for you. TMDs at ubank.com.au
Budget proposals are not yet law, so things may change. Speak to a tax professional before making investment decisions.
