Australia 2026 Budget Cuts Negative Gearing Impacting Wealth Managers

AI Summary

Australia’s May 2026 federal budget introduces a scaling back of negative gearing, affecting investment property taxation. This change is expected to mildly rebalance the Australian investment portfolio, where 37% of affluent investors own property, compared to 32% in peer markets like the US and UK. Financial market investments among affluent Australians are at 71%, lower than the 80% average in similar markets. Overall, the budget changes may lead to increased investment in financial markets over the next three years, benefiting wealth managers.