What the Federal Budget Means for the Landscaping industry

LV NEWS BRIEF

The 2026–27 Federal Budget has introduced a number of policy measures that may shape the operating environment for Australia’s landscape industry in the years ahead. From housing supply and infrastructure investment to proposed tax changes affecting small businesses, property investment and asset planning, the Budget presents several areas for landscape contractors, designers, suppliers and business owners to watch closely.

Ritchie Hinton | 11 June 2026 | 6 min read

The 2026-27 Federal Budget includes several measures with potential implications for Australia’s landscape industry, including proposed changes connected to housing investment, commercial and infrastructure pipelines, small business tax settings, capital gains tax and discretionary trusts.

For residential and commercial landscape contractors, designers, suppliers and business owners, the key areas to watch are housing market activity, new development, public infrastructure, business investment and longer-term asset planning.

Housing Reform Focuses on New Supply

The Budget includes reforms to negative gearing and capital gains tax arrangements.

From 1 July 2027, negative gearing for residential property will be limited to new builds, with existing arrangements retained for properties held before Budget night. Investors who buy new builds will continue to be able to deduct losses from other income.

The Government has positioned the change as a measure to focus tax support on the new housing supply. The Budget also includes a $2 billion Local Infrastructure Fund intended to support enabling infrastructure for new homes, including works that can unlock development in growth areas.

For the landscape industry, these measures are relevant because new housing, mixed-use development and subdivision activity often create downstream demand for civil interface works, streetscapes, planting, turf, irrigation, retaining, paving, outdoor living and supplier products.

The timing of any impact will depend on legislative approval, permit approvals, financing conditions, planning processes, labour availability, procurement timelines and consumer confidence.

Potential Impacts for Residential Landscaping

A stronger policy focus on new builds could support landscape work for townhouses, greenfield estates, multi-residential projects, and new-home packages. These projects often require landscape construction, garden establishment, soft landscaping, turf, irrigation and maintenance handover work.

The reforms may also influence buyer activity in the established housing market. Early reporting following the Budget pointed to renewed interest from some first-home buyers, although the longer-term effect on established property demand remains uncertain.

For residential landscapers, one possible outcome is a shift in project mix. New housing activity could increase demand for smaller-format landscapes such as courtyards, townhouse gardens, balcony planting and staged front-garden works, while owner-occupiers may continue to invest in outdoor areas that improve amenity, presentation and long-term property use.

Investor and Developer Response Remains a Key Variable

The Budget changes have also created uncertainty for some property investors and developers. Lenders and advisers have begun reviewing how the reforms may affect borrowing capacity, project feasibility and investment returns.

Any short-term slowdown in investor confidence could affect projects linked to rental properties, small-scale developments or speculative builds. Suppliers and contractors exposed to these segments may see changes in enquiry patterns, project timing, scope or staging as clients assess the new settings.

The legislation required to enact the tax changes is still part of the implementation pathway, meaning timing and final detail will continue to be watched by the property, construction and finance sectors.

Commercial Landscapers Linked to Development and Infrastructure Pipelines

Commercial landscapers may experience the Budget through development pipelines, public infrastructure, education and health projects, commercial property maintenance, asset upgrades and broader business confidence.

If housing and infrastructure measures support new development activity, downstream opportunities may emerge for commercial contractors to deliver larger, staged, or compliance-heavy works. This could include streetscapes, civil interface works, podium landscapes, commercial planting, irrigation, turf, maintenance contracts and green infrastructure connected to new residential and mixed-use developments.

The $2 billion Local Infrastructure Fund is particularly relevant to this part of the sector, as enabling infrastructure is often connected to the public realm, access, drainage, open space and landscape interfaces required to support new housing areas.

The Budget’s broader productivity and approvals measures may also be relevant to commercial operators if they help accelerate project progress over time. Any benefit will depend on how quickly planning, procurement and delivery agencies convert funding commitments and reforms into active works.

Commercial contractors are also exposed to changes in feasibility and confidence. Developers, asset owners and institutions may reassess scope, staging or timing as they review tax changes, financing costs and demand. Maintenance-focused businesses may be less exposed to one-off project delays where they hold recurring contracts with councils, schools, retail centres, strata, commercial precincts or industrial sites.

Small Business Measures Included in the Budget

The Budget also includes measures aimed at small business investment and cash flow.

From 1 July 2026, the $20,000 instant asset write-off will be made permanent for small businesses with a turnover under $10 million. Eligible assets costing less than $20,000 can be immediately deducted, subject to the relevant rules.

For landscape businesses, this may be relevant to purchases such as small machinery, trailers, tools, technology, software, office equipment or safety-related assets, depending on eligibility and business circumstances.

The Budget also reintroduces loss carry-back rules from 2026-27, allowing eligible companies with turnover up to $1 billion to use current-year losses to claim refunds of tax paid in the previous two income years.

CGT and Discretionary Trust Changes May Affect Asset Planning

Capital gains tax changes announced in the Budget are another area of interest for business owners and investors.

From 1 July 2027, the Government will replace the 50 per cent CGT discount with an inflation-based discount and introduce a minimum 30 per cent tax on gains. The reforms will apply to gains arising after 1 July 2027. Investors in new builds will be able to choose between the existing 50 per cent CGT discount and the new arrangements.

The changes may be relevant to landscape business owners who hold investment properties, business premises, commercial property, shares, business assets, or assets held in trusts.

The Budget also introduces a minimum 30 per cent tax on discretionary trusts from 1 July 2028, with some exceptions. Rollover relief will be available for three years from 1 July 2027 for eligible taxpayers who restructure in response to the changes.

For family-owned businesses, these measures are likely to be reviewed in the context of business structure, succession, retirement planning and the future transfer or sale of appreciating assets.

Estate Planning Implications

While the Budget does not introduce a new estate tax, the CGT and discretionary trust measures may influence estate and succession planning for families holding appreciating assets.

This may include business premises, investment properties, commercial property, shares or long-held business assets. The timing of future transfers, sales or restructures may become a greater focus as the 1 July 2027 and 1 July 2028 commencement dates approach.

Industry Outlook

The Budget presents several moving parts for the landscape industry.

Measures aimed at new housing supply may support future demand for residential construction and landscaping, while infrastructure and approvals measures may influence commercial and public-realm work over time.

At the same time, changes to negative gearing, CGT and discretionary trusts may affect investor behaviour, client confidence, borrowing capacity, project feasibility and long-term asset planning.

For landscape businesses, the practical impact is likely to vary by market segment. Residential contractors may see changes in demand between new-build and established-property work. Commercial landscapers may be more influenced by tender pipelines, development activity and infrastructure delivery. Suppliers may feel the impact through both project timing and product demand.

Further detail is expected as legislation progresses and government agencies release implementation guidance.

Note: This article is provided for general information and industry news purposes only. It does not constitute tax, legal or financial advice. Readers should seek independent professional advice on their own individual circumstances.