This week, the federal government released its 2026-27 federal budget. It was met with criticism, reportedly “breaking election promises” by reducing the tax rate of realised capital gains from property and shares from 50% to 30% and abolishing negative gearing for all properties but new residential property purchases. Changes were made to taxes on discretionary trust distributions from 2028-29. However, the tax landscape is changing for many operations in the agricultural supply chain under these reforms.

Agriculture will benefit from a $14.8bn fuel resilience package, which includes $7.5bn for near-term fuel and fertiliser purchases and $3.2bn to create a fuel security reserve. Treasurer Jim Chalmers also confirmed a $20,000 instant asset write-off will be made permanent. Other measures include $23m over four years to support ag exports, $45m to sustain international trade and standards activity as well as other programs that cut red tape for exporters.