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Australia Federal Budget 2026: What to Watch on May 12

The Treasurer hands down the 2026-27 Federal Budget on May 12. Here is what has leaked, what to watch for, and how it will hit your super, tax, and mortgage.

5 minTax🇦🇺Australia · FY 2026-27By Vitthub Editorial

The Federal Budget for 2026-27 is handed down on the second Tuesday of May — May 12, 2026. With the Super Guarantee having stepped up to 12% on July 1, 2025, attention shifts to what Treasurer does next on tax, housing, and cost of living.

What to watch

### Stage 3 tax cut settings The revised Stage 3 (effective July 1, 2024) lowered the 19% bracket to 16%, raised the 37% threshold to $135k, and kept the 45% threshold at $190k. Any tweak in Budget 2026 would be front-page news.

### Super - Div 293 threshold ($250k) — rumoured to drop to $200k - Transfer balance cap — currently $1.9M, indexed - Non-concessional cap — $120,000/year, bring-forward rules

### HECS-HELP Indexation reform is live — HELP loans now indexed to lower of CPI or WPI, retrospectively from June 2023. Watch for further changes to repayment thresholds (currently start at ~$54k).

### Housing - First Home Super Saver Scheme — cap possibly raising from $50k - Help to Buy shared-equity scheme — expansion likely - Negative gearing / CGT discount — politically radioactive, but persistently rumoured

What you should do before Budget night

1. If considering an investment property purchase: Don't rush. Wait for Budget. Negative gearing changes (if any) usually grandfather existing holdings. 2. If approaching super caps: Make contributions before June 30 if rules tighten. 3. HECS borrowers: Check your balance on myGov — indexation applies June 1.

On Budget night

We will publish a same-evening summary at Vitthub. Subscribe via the footer. Meanwhile, run your scenarios on the Income Tax Calculator and Superannuation Calculator.

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