From a finance perspective, the 2026–27 Federal Budget includes a range of proposed changes that may influence borrowing, lending conditions and property investment decisions for individuals, investors and small businesses. Below, I’ve summarised some of the key measures and how they may be relevant from a lending and finance perspective, including small business incentives, housing and property finance, and broader investment impacts.
Small business tax incentives and lending support
The $20,000 instant asset write-off will continue to assist Small Business / Investors as an add back of income when seeking finance. The measure allows businesses with annual turnover under $10 million to immediately deduct the full cost of eligible assets valued under $20,000, thereby reducing tax, however, we can use this in bank servicing assessments
Housing and property finance
The Budget included major measures aimed at increasing housing supply and supporting new home construction. Areas expected to benefit:
- All home buyers, while continuing to provide focus on first home buyers.
- Increase in property development activities to assist delivery of the housing demands and meet targeted builds.
- Construction and infrastructure investment such as roads, utilities and community services is designed to unlock additional housing developments and accelerate new housing projects across Australia.
Negative gearing changes
This a major area of concern when financing, as this will impact how banks assess future loans. Exclusion of negative gearing on established properties means that the capacity to borrow will be lower for future investment purchases and could impact value of investment asset that can be afforded.
By restricting negative gearing to new builds, this could reduce investor demand for established rental properties, potentially tightening rental supply and putting upward pressure on rents.
In addition, there is risk that Investors will focus on the New Builds to maximise tax benefits, and therefore, could have an impact on First Home Buyers ability to compete with Investors.
Investors with existing long term loans may need to seek appropriate tax and planning advice to consider retention strategies (such as restructuring to interest only) in order to maintain longer term negative gearing benefits on existing assets so that they can use disposable surplus funds for other investment activities.
Superannuation and wealth management
The Budget reinforced the strength of Australia’s superannuation system as a long-term investment vehicle.
This has been a continued area of growth as Australians take greater control and interest in their own retirement strategies via Self Managed Super Fund investments. With the right Financial Planning and Tax advice, this remains a sound vehicle for future retirement planning and with the increased lender activity to support suitable investments, a sound long term investment consideration.
In summary
- $20,000 instant asset write-off assists reducing tax while supporting finance applications.
- Housing measures aim to increase new home construction and support home buyers.
- Changes to negative gearing may:
– Reduce borrowing power for investors.
– Push more investors toward new builds.
– Increase pressure on rental prices.
– Create more competition for first home buyers. - Superannuation and SMSFs continue to grow as popular long-term investment and retirement planning options.
If you have any concerns regarding the new Budget, or need further clarification, please reach out to the Finance team:
E finance@highview.com.au
T (03) 5990 1000
Renato Mastromanno
Senior Finance Broker
Highview Accounting & Financial
