2027 is shaping up to be an important year for Australian taxpayers, property investors and business owners.
With changes to income tax, investment properties and capital gains tax, understanding the new rules could make a real difference to your financial decisions.
Some changes are already law, while others are part of the government’s broader tax reform program.
Here’s what you should know.
Income tax rates are changing
From 1 July 2027, the lowest income tax rate for Australian residents will decrease from 15% to 14%.
This rate applies to taxable income between $18,201 and $45,000.
For someone earning at least $45,000 in taxable income, this represents an additional tax saving of up to $268 per year compared with the 2026–27 rates.
While the saving might seem small, it forms part of the broader changes designed to reduce income tax for working Australians.
A new $250 tax offset
A Working Australians Tax Offset has also been introduced for eligible taxpayers from the 2027–28 financial year.
This non-refundable offset can reduce the amount of income tax payable by up to $250.
It is important to remember that a tax offset reduces your tax liability. It doesn’t automatically mean you’ll receive an additional $250 refund.
Changes to investment property rules
From 1 July 2027, negative gearing rules will change for certain residential investment properties.
The reforms generally protect properties held before 7:30pm AEST on 12 May 2026.
However, investors purchasing established properties after that date will face restrictions on using rental losses to reduce unrelated income, such as wages.
New residential builds will continue to receive more favourable treatment.
Capital gains tax changes
The existing 50% capital gains tax discount is also being replaced for many gains arising from 1 July 2027.
The new system will generally use inflation adjustments and a minimum tax rate on applicable capital gains.
Transitional arrangements are important, particularly for people who already own investment properties, shares or other assets.
What should you do now?
Before making major financial decisions, consider:
- Reviewing your investment properties and future purchase plans
- Checking how the income tax changes may affect you
- Understanding the tax consequences of selling an asset
- Reviewing your business structure and long term financial plans
- Speaking with your accountant before committing to major transactions
At PLH Accountants, we help individuals and business owners understand tax changes and make informed financial decisions.
The rules may be changing, but the value of planning ahead remains the same.
If you’re unsure how the 2027 tax changes may affect you, contact our team for advice tailored to your circumstances.