Federal Budget changes prompt shift in investment strategies, says NGS Super financial planner

By Newsdesk

May 15 2026
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The recent Federal Budget has introduced significant changes to capital gains tax (CGT) and negative gearing, prompting a shift in how Australians may approach long-term investments. Toby Perkins, a financial planner at NGS Super, offered his insights into the implications of these changes, highlighting both the challenges and opportunities they present for Australian investors.

Federal Budget changes prompt shift in investment strategies, says NGS Super financial planner

Perkins noted that the Budget's measures aim to balance cost-of-living relief with fiscal responsibility. "As expected, the Federal Budget included changes that balance cost-of-living relief with fiscal responsibility," he said. Among the measures is the earned income offset, which Perkins described as a "minor change" but one that will be "welcomed by many working Australians who continue to feel the pressure of sustained inflationary pressure and elevated fuel costs."

However, Perkins emphasised that the changes to CGT and negative gearing could have a more profound impact on investment strategies. "The changes to capital gains tax and negative gearing will have a real impact on the way Australians approach long-term investing," he explained. With these adjustments, more Australians might consider superannuation as an alternative to property investment, viewing it as a long-term, tax-effective vehicle for wealth creation. "More Australians may look to superannuation to fill the role traditionally played by property investment," Perkins added.

The financial planner was keen to stress that while tax advantages are an important factor, they should not be the sole consideration when making investment decisions. "However, while tax is an important consideration with any investment decision, it should not be the primary driver," he advised. This highlights the need for a balanced approach, where tax benefits are weighed alongside other factors such as risk tolerance and long-term financial goals.

The Budget has introduced a one-year transition period for the CGT and negative gearing changes, which Perkins sees as a crucial time for investors to reassess their portfolios. "The one-year transition period for changes to CGT and negative gearing will be an important time to assess whether investments are still aligned to long-term financial goals, and how super might fit into that equation," he stated. This period provides an opportunity for investors to evaluate their current strategies and consider adjustments to align with the new tax landscape.

Perkins also underscored the value of seeking professional advice during this transitional phase. "Financial Planners are a great resource to cut through the complexity and explore the right options for you," he said. The expertise of financial planners can be invaluable in navigating the complexities of the new regulations and ensuring that investment strategies remain aligned with personal financial goals.

The changes come at a time when Australians are already grappling with economic pressures, including inflation and high fuel costs. The earned income offset, though a minor adjustment, is expected to provide some relief to working Australians. Perkins suggested that those with additional cash flow might consider using salary sacrifice or making voluntary contributions to superannuation as tax-effective ways to invest in their future.

In summary, the Federal Budget's changes to CGT and negative gearing are set to reshape the landscape of long-term investing in Australia. With a shift towards superannuation as a viable alternative to property investment, Australians are encouraged to reassess their investment strategies and seek professional advice to navigate this new terrain. As Perkins pointed out, while tax considerations are important, they should not overshadow the broader goals of financial planning and wealth creation.

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