Australia’s 2026 budget one of the most consequential in years for wealth managers

Australia’s May 2026 national fund was 1 of the much ambitious taxation packages impacting fiscal services since the Future of Financial Advice reforms successful 2013. One of the astir important (and controversial) measures was the scaling backmost of antagonistic gearing successful concern property. However, portion this alteration whitethorn beryllium politically sensitive, it volition lone spot a mild rebalancing of the Australian concern portfolio.

GlobalData 2025 Financial Services Consumer Survey

Australia has shown an antithetic affinity for spot investing compared to different akin markets. Among Australia’s affluent investors (defined arsenic individuals with much than $25,000 successful liquid assets), 37% clasp spot investments arsenic per GlobalData’s 2025 Financial Services Consumer Survey. This is supra the 32% mean 1 sees crossed adjacent markets Canada, the US, the UK, New Zealand, Singapore, and Hong Kong (China SAR). In contrast, fiscal marketplace investments (including stocks and funds) are little astatine 71% uptake among Australia’s affluent individuals, compared to an mean of 80% crossed these markets.

The changes to the superior gains discount—and astir notably the scaling backmost of antagonistic gearing to use conscionable to rental income, not the individual’s full income—will effect successful immoderate nonaccomplishment of attractiveness for spot going forward. However, with existing spot concern grandfathered successful and the changes not applying to caller physique concern properties, the deed volition yet beryllium minor. The caller measures volition apt simply bring Australia person to the Anglo marketplace average.

This is bully quality for wealthiness managers, arsenic they should spot a corresponding emergence successful the complaint of investing into fiscal markets. This summation could marque Australia 1 of the hottest markets for caller investors implicit the adjacent 3 years arsenic it adopts much emblematic concern patterns. Australian retail wealthiness managers should reappraisal their onboarding strategies and guarantee they code immoderate friction points, arsenic determination are important maturation opportunities coming.

Andrew Haslip is Head of Content for Wealth Management and Asia-Pacific (FS) astatine GlobalData

"Australia’s 2026 fund 1 of the astir consequential successful years for wealthiness managers" was primitively created and published by Private Banker International, a GlobalData owned brand.

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