Tag: Stock pick

The All Ordinaries Index (ASX: XAO) has slumped 1.6% in 2026, but this ASX All Ords healthcare share has taken a much bigger hit.

The beaten down stock in question is Oneview Healthcare (ASX: ONE).

In early afternoon trade on Wednesday, OneView Healthcare shares are down 3.0%, trading for 16 cents apiece.

This sees the ASX All Ords healthcare share down a painful 60.0% year to date.

Looking ahead, however, Securities Vault’s Nathan Lodge believes the company, which provides digital tools for patients, families and caregivers, could be poised to rebound (courtesy of The Bull).

OneView is currently partnered with healthcare systems in the United States, Australia, Ireland, the Middle East and Asia, helping to unify the care experience in more than 80 hospitals.

Should you buy the ASX All Ords healthcare share today?

“Its care experience platform integrates patient engagement tools into hospital systems,” said Lodge, who has a buy recommendation on the ASX All Ords healthcare share.

“The company’s offering should generate demand,” he added. “Potential upside exits following positive momentum.”

According to Lodge:

The investment thesis hinges on hospital digitisation and patient experience mandates, particularly in the US, where funding tailwinds remain supportive.

As for the second reason you might want to buy OneView shares today, Lodge said, “As deployments scale up, Oneview’s recurring revenue model should drive operating leverage.”

Summing up his bullish outlook on the beaten down stock, Lodge concluded, “Importantly, the company has already secured major hospital clients, reducing execution risk compared to earlier stage peers.”

What’s the latest from OneView?

OneView Healthcare reported its March quarter results on 27 April.

The ASX All Ords healthcare share closed up 2.9% on the day after reporting a $9 million quarter-on-quarter increase in its cash balance to $17.1 million. That was spurred by a successful $19 million capital raising during the quarter.

“The successful completion of the recent capital raise in extremely challenging market conditions represents a strong endorsement of Oneview’s strategy and execution,” OneView Healthcare CEO James Fitter said.

Looking ahead, Fitter added:

The first quarter of the year has been a busy period for the business, with continued engagement across our sales channels and progress that supports our objectives for 2026…

With a strengthened balance sheet, continued deployment activity across new and existing customers, and growing demand for digitally supported bedside experiences, the company is well positioned to maintain momentum as we progress through the year.

The post 3 reasons this beaten down ASX All Ords healthcare share could come roaring back appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: 3 small cap ASX shares
• 3 ASX small-cap stocks every investor should be monitoring

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

CSL Ltd (ASX: CSL) shares are in the red again in Wednesday’s trade. 

At the time of writing, the shares are down another 0.22% to $98.33 a piece. Although at one point earlier this morning, the shares were up 2.3% to $100.80 each. 

It’s more bad news for investors after the shares suffered their biggest ever one-day crash on Monday this week. 

CSL shares tumbled 20% on Monday following the company’s latest market update. The company announced it has lowered its FY26 revenue guidance to US$15.2 billion on a constant currency basis, and an NPATA of around US$3.1 billion. This is down from a revenue of US$15.6 billion and profit of US$3.3 billion reported in FY25.

Today’s decline means CSL shares are now even further away from levels seen in 2024-25.

The biotech company’s share price has now dropped 28% over the past month, is 43% lower year-to-date, and is currently trading 59% below levels seen this time last year.

Why do CSL shares keep tumbling?

Dwindling investor confidence is the main reason that CSL shares keep tumbling.

CSL was once widely viewed as one of the most dependable growth companies on the ASX. But over the past few years, it has experienced a notable slowdown in earnings growth, operational challenges, and other headwinds, including lower vaccine demand, a surprise restructuring, and a shock CEO exit.

There has also been a broad market rotation away from healthcare-related stocks in 2026. 

ASX healthcare shares have lagged behind most other sectors on the index so far this year as investors reposition themselves towards ASX energy stocks, resources, and defensive assets. 

Are CSL shares still a buy?

Analysts have widely considered the biotech company’s shares oversold and undervalued for some time now. But it looks like sentiment is finally shifting.

Just two weeks ago, TradingView data showed that 12 of 18 analysts had a buy or strong buy rating on the stock, with an upside of up to 109% to $268.84 per share over the next 12 months.

But today, that data has been significantly revised.

The latest data shows that only 9 of 18 analysts now have a buy or strong buy rating on the shares. Another nine have a hold rating.

The potential target prices are much lower, too.

The maximum target price has been lowered from $269.84 to $195.19. Although it still implies a potential 98% maximum upside ahead for the shares.

The average $147.63 target price implies a potential 50% upside ahead for investors at the time of writing. 

Can CSL shares regain momentum?

It’s possible, but the latest guidance downgrade hasn’t helped investor sentiment. It’ll take a proven track record of short-term revenue and profit growth for investors to regain confidence.

Although if CSL is able to speed up its earnings growth, investor sentiment could shift quickly, and the share price could start to rebound. 

The post Down 59%: Will CSL shares ever regain momentum? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Our Aussie share market is having another difficult session on Wednesday, and the selling is starting to look more persistent.

At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is down 0.38% to 8,637 points.

That leaves the benchmark index on track for its fourth straight daily decline. It also adds to a weak month for investors, with the ASX 200 finishing higher on just 6 trading days over the past month.

The index is still up about 4.46% over the past year, but the shorter-term picture looks much weaker. Over the past month, the ASX 200 is now down 3.61%.

Here’s what’s dragging the market lower.

CBA sell-off hits the banks

Commonwealth Bank of Australia (ASX: CBA) is doing most of the damage on the ASX 200 today.

CBA shares are currently down 9.64% to $155.03 after the bank released its latest quarterly update.

The bank reported an unaudited quarterly cash profit of $2.7 billion, down 1% on the prior quarter. It set aside more money to cover possible bad loans, with its loan impairment expense rising to $316 million.

The selling has also spread across the other major banks.

Westpac Banking Corp (ASX: WBC) is down 3.11%, National Australia Bank Ltd (ASX: NAB) is down 1.50%, and ANZ Group Holdings Ltd (ASX: ANZ) is down 1.54%.

Investors are also digesting the Federal Budget, with analysts assessing what changes to negative gearing and the capital gains tax (CGT) could mean for investor lending growth.

Miners provide some support

Nonetheless, the fall could have been worse without support from the big miners.

BHP Group Ltd (ASX: BHP) is up 3.47% to $61.855, while Rio Tinto Ltd (ASX: RIO) is 2.68% higher to $190.39, and Fortescue Ltd (ASX: FMG) is up 1.87% to $22.32.

That has helped cushion the broader market, but it has not been enough to offset the pressure from the banks.

There are also some strong individual moves.

Aristocrat Leisure Ltd (ASX: ALL) is up 12% after reporting a stronger half-year result and expanding its share buyback program by $1 billion. The company also lifted its interim dividend to 50 cents per share.

On the other side, Zip Co Ltd (ASX: ZIP) is down 4.68% to $2.345 after confirming it must rebrand its Australian products and services following a court ruling.

Wages data adds to the mix

Investors also had fresh economic data to consider.

The Australian Bureau of Statistics (ABS) said wages rose 0.8% in the March quarter, matching the previous two quarters. Annual wage growth eased to 3.3%, down from 3.4% a year earlier.

That’s not a shocking result, but it does come at a time when investors are already watching inflation and interest rates.

The post The ASX 200 just fell for a fourth straight day. Should investors be worried? appeared first on The Motley Fool Australia.

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• Aristocrat Leisure posts double-digit profit and dividend growth in HY26

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is having a poor session on Wednesday. In afternoon trade, the benchmark index is down 0.4% to 8,635.4 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

Arafura Rare Earths Ltd (ASX: ARU)

The Arafura Rare Earths share price is up 11% to 36.75 cents. This morning, this rare earths developer announced a binding offtake term sheet with Traxys North America. This will see Arafura supply 500 tonnes per annum of NdPr oxide from the Nolans project. Arafura’s managing director, Darryl Cuzzubbo, said: “We have long believed that the right partners would define the quality and durability of Arafura. The offtake relationships we have established are not just transactional arrangements. They reflect growing alignment between industry participants and government-supported initiatives aimed at establishing resilient critical minerals ecosystems as an imperative, not merely an opportunity.”

Aristocrat Leisure Ltd (ASX: ALL)

The Aristocrat Leisure share price is up 12% to $51.51. This morning, the gaming technology company released its half-year results and revealed normalised revenue of $3.03 billion. This was up 6.4% in constant currency. Normalised EBITA increased 6.2% to $1.12 billion, or 14% in constant currency. Another positive is that the company has increased its on-market share buy-back program by $1 billion (up to $2.5 billion in aggregate) and extended it through to 12 May 2027. Aristocrat’s CEO and managing director, Trevor Croker, said: “Aristocrat delivered a strong first half, with clear progress across the business and market share gains in key segments. Our earnings growth reflects disciplined execution, strong revenue momentum throughout our portfolio, and a continued focus on efficiency and extracting operating leverage.”

BHP Group Ltd (ASX: BHP)

The BHP share price is up a further 3% to $61.78. This follows yet another strong rise in the copper price overnight, taking the base metal to a record high. In other news, this morning BHP announced the appointment of Mark Vassella as a non-executive director. Vassella has over 40 years’ experience in the global steel industry and materials value chain. He was the CEO and managing director of BlueScope Steel Ltd (ASX: BSL) from January 2018 to January 2026.

Perenti Ltd (ASX: PRN)

The Perenti share price is up 7% to $2.17. This morning, the mining services company announced that its Barminco business has been awarded an $850 million four-year contract by Bellevue Gold Ltd (ASX: BGL). The company’s CEO, Mark Norwell, said: “This contract award reinforces Barminco as a global leader in underground mining, further strengthening Barminco’s underground mining portfolio and earnings in Australia.”

The post Why Arafura, Aristocrat, BHP, and Perenti shares are racing higher today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Share prices for three of Australia’s major fast food operators have all been under pressure in recent months, with the analysts at Morgans saying this means it could be a good time to buy.

Consumers looking for quality

In a research note distributed to clients this week, the broker said it had done extensive market research, as well as its own consumer survey, which indicated that more than half of consumers cited food quality and taste as the most important factors affecting which fast food they bought, with only a small number citing cost as the primary issue.

The research also indicates that the sector has an opportunity to capitalise on changing consumer trends.

As Morgans said in its research note:

As alcohol consumption falls sharply among younger Australians, discretionary capacity is migrating toward food experiences that meet a quality threshold. Nearly six in ten Gen Z diners expect to spend more on eating out in 2026 than in 2025, making them the most growth-oriented dining cohort in the market.

All three of the companies analysed by Morgans have a buy rating, so without further ado, let’s have a look at what they’re saying.

Guzman Y Gomez Ltd (ASX: GYG)

Morgans said Guzman Y Gomez is in favour because of its high-quality, health-led proposition.

They added:

This supports structural long-term growth. Material earnings growth is well supported by daypart expansion, strong unit economics, a large white space opportunity and operating leverage, with the pace of US loss narrowing the key variable to monitor.

Morgans has a price target of $26.70 on Guzman Y Gomez shares compared with $17.14 currently.

Guzman Y Gomez is among the most-shorted stocks on the ASX.

Collins Foods Ltd (ASX: CKF)

The KFC and Taco Bell operator is a “defensive compounder”, Morgans says, having a cash-generative business, “with a management team set to navigate a difficult macroeconomic backdrop, and a value proposition that makes it a natural beneficiary of casual dining trade-down”.

Morgans said the German growth pipeline was effectively unpriced at current levels, “and the valuation is undemanding”.

Morgans has a price target of $12.50 on Collins Foods shares compared with $8.02 currently.

Colins Foods is valued at $935.6 million.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Morgans said Domino’s had been an unintentional case study for the sector by training customers to expect discounts, eroding the pricing power needed to maintain franchisee profitability.

The broker said Domino’s is now a turnaround story, with strong foundations and a solid management team.

They added:

However, we require consecutive results showing improved EBIT margins and evidence of returning franchisee profitability without further top-line deterioration before full conviction is warranted. We view their value proposition as weaker than peers.

Morgans has a price target of $25 on Domino’s shares compared with $15.63 currently.

The post Which 3 ASX fast food operators are going cheap at current levels according to Morgans? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Collins Foods and Domino’s Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The fund managers in charge of the listed investment company (LIC) WAM Capital Ltd (ASX: WAM) are excited about the potential returns of certain ASX shares.

Smaller ASX shares may have more growth potential than larger companies because they are earlier on in their growth journeys.

WAM Capital aims to find the most compelling undervalued growth opportunities in the Australian market. Let’s look at two of them that were recently highlighted.

Artrya Ltd (ASX: AYA)

The fund manager described Artrya as a medical technology company that uses artificial intelligence (AI) to help detect coronary artery disease using non-invasive scans in emergency and primary care settings.

WAM noted that the Artrya share price increased in April after the release of the FY26 third-quarter results.

The investment team said the result highlighted a key milestone: the company has entered a revenue-generating phase with its foundation customer, Tanner Health, and is commencing patient scanning using Artrya’s platform.

Multiple major US partners, including Northeast Georgia Health and Cone Health, continued onboarding and are expected to commence scanning by early FY27, according to WAM, supporting a pathway to multi-site revenue growth.

The ASX share also progressed its Salix Coronary Flow module, an AI tool that assesses coronary blood flow from CT scans, towards US Food and Drug Administration (FDA) submission for regulatory approval, targeting rollout in the first half of FY27.

The fund manager concluded its thoughts on the business with the following:

We believe the share price performance demonstrates increasing confidence in execution, with scan volumes and revenue conversion being key near-term milestones.

FINEOS Corporation Holdings PLC (ASX: FCL)

The other ASX share WAM highlighted from the WAM Capital portfolio is FINEOS, which develops software used by global health insurers to manage core functions such as policy administration, claims handling, and customer billing.

The fund manager noted that the FINEOS share price rose during the month after a solid quarterly update that supported confidence in improving cash generation and contract momentum.

FINEOS reported free cash flow of €11.1 million and a closing cash balance of €47.1 million (up €19.3 million on the prior quarter), highlighting continued progress towards its FY26 profitability and cash targets.

WAM said that new contract wins, including a North American client and the Motor Accidents Insurance Board of Tasmania, also demonstrated continued demand for the platform.

Guidance was reaffirmed for FY26 revenue of €147 million to €152 million.

The fund manager concluded:            

We believe the April share price strength reflects growing confidence in the company’s ability to increase cash generation, and translate contract wins into sustainable earnings.

The post 2 exciting ASX shares to buy with big growth potential! appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended FINEOS Corporation. The Motley Fool Australia has positions in and has recommended FINEOS Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on track to finish the day in the red. At the time of writing, the benchmark index is down 0.4% to 8,632.9 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price is down 10% to $154.64. This follows the release of the big four bank’s third-quarter update this morning. CBA revealed that its operating income was flat on the first-half quarterly average, with higher net interest income offset by lower other operating income. Cash profit was down 1% on the first-half quarterly average. This was softer growth than the market was expecting. However, the federal budget overnight also appears to have impacted sentiment and could be adding further pressure to CBA shares on Wednesday. The team at Morgan Stanley has warned that the budget creates more downside risk for bank earnings multiples.

Healius Ltd (ASX: HLS)

The Healius share price is down 21% to 38.2 cents. This morning, the pathology company released a trading update and revealed that it expected to report EBIT of $30 million to $35 million in FY 2026. The company also spoke critically about the federal budget, highlighting that inadequate funding is causing challenges. It said: “Last night’s Federal Budget contains no new funding for pathology, a sector already operating under an indexation freeze for most tests. […] Inadequate funding has resulted in difficult decisions to cut staff, close collection centres and regional laboratories. This year’s Federal Budget will put additional pressure on a sector which is a critical part of Australia’s primary healthcare system.”

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is down 11% to $11.29. This follows the release of a trading update from the uranium producer this morning. Paladin Energy posted a 51% increase in revenue to US$209.1 million for the nine months. However, its net profit after tax was only US$1.7 million. It also recorded an operating cash outflow of US$36.4 million. Investors appear to have been expecting stronger financial results for the nine months.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price is down 4% to $5.10. This morning, the online furniture retailer revealed that FY 2026 revenue is expected to be in the range of $665 million to $675 million. This will be an increase of 11% to 12% on the prior corresponding period. Temple & Webster’s EBITDA is expected to be in the range of $20 million to $22 million. This will be an increase of 6% to 17% over the prior corresponding period. Temple & Webster’s outgoing founder and CEO, Mark Coulter, said: “We remain firmly focused on growing our market share and reaching $1 billion in revenue by FY28, and becoming a larger, more profitable business. However right now, given the uncertainty in the Australian economy, we have prudently chosen to rebalance between profit and growth in our core business.”

The post Why CBA, Healius, Paladin Energy, and Temple & Webster shares are sinking today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Zip Co Ltd (ASX: ZIP) shares are sliding on Wednesday after the buy now, pay later group lost a long-running trade mark battle.

At the time of writing, the Zip share price is down 4.68% to $2.345.

That leaves the stock down around 19% in 2026, although it remains up about 18% over the past year.

The latest fall follows an ASX update confirming that the High Court of Australia has delivered judgment in proceedings involving Firstmac Limited.

Let’s take a closer look at the release.

Zip loses its High Court fight

In its announcement, Zip said the High Court has ruled against it in the ongoing Firstmac trade mark case.

The decision means Zip and relevant subsidiaries must stop using the “Zip” trade mark in Australia in relation to their products and services.

That change must happen within 28 days, unless the Federal Court allows another date.

Zip is one of the best-known names in Australian buy now, pay later (BNPL). Its brand appears across its app, merchant network, customer products, and marketing.

A forced change creates extra work at a time when investors have been hoping the company could stay focused on growth and profitability.

What changes from here?

The key point here is that this decision applies only to Australia.

Zip said the ruling does not affect its US business, which now represents about 80% of divisional cash earnings. It also said the decision does not affect the New Zealand business.

Both markets will continue using the Zip brand.

While that softens the blow somewhat, it can complicate things from a consumer perspective.

Australia remains the company’s original market, and the Zip name is still a visible part of the business locally.

Zip said it is prepared for this outcome and will use the change to evolve its Australian brand.

The company also said it will provide further updates in the coming weeks.

With that in mind, investors will now be watching how quickly the rebrand happens, how much it costs, and whether it creates customer confusion.

Foolish Takeaway

Zip’s US business is the main driver of group earnings, which helps explain why the sell-off has been contained.

Still, losing the right to use the Zip name across Australian products is not ideal and can appear messy.

Nonetheless, the company says it is ready to make the change.

For now, it seems that today’s decline looks like the market is just pricing in an unwanted distraction.

The post Zip shares sink after court loss. Is this ASX comeback stock in trouble? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX technology stock Hipages Group Ltd (ASX: HPG) is trading close to its 12-month low. This makes it a compelling buy, according to the analyst team at Shaw and Partners.

Outlook impresses analysts

Hipages was among the companies which presented at Shaw and Partners’ recent TechRise conference held in Sydney, with founder and Chief Executive Officer Roby Sharon-Zipser apparently delivering a “confident” update.

The Shaw and Partners research note issued this week goes on to say:

FY26 guidance was reiterated, with management noting softer subscriber volumes but strong yield trends and another price increase from 1 July tied to new AI-enabled products. Management also appeared increasingly confident that growing job management adoption, disciplined cost control and AI-driven efficiencies can support structurally higher retention, monetisation and margins, while positioning AI as a competitive advantage supported by proprietary data and trusted marketplace infrastructure.

The Shaw report says Hipages management acknowledged that the second quarter had been “tough”. However, also noted the third quarter was better, and expects the fourth to further improve on that.

While Hipages said growing volumes was difficult, “stronger lead pricing and subscription upgrades are supporting improved yield outcomes despite softer volume trends”.

Hipages is planning to increase its pricing from July 1, and added that premium offerings might not be included in base subscriptions.

The Shaw report says:

Management said several AI capabilities ‘may not be part of the subscription’ and instead become “add-ons, so expansion revenue.’ The upcoming AI virtual assistant was framed as incremental monetisation rather than bundled functionality.

Diversification in train

Hipages also recently acquired a majority stake in VIZ Insurance – a digital first insurance provider which specialises in providing insurance for tradespeople.

Shaw said regarding that deal:

Management positioned the VIZ Insurance acquisition as a fast-track entry into embedded financial services rather than a standalone insurance investment. The acquisition adds ~4,500 insured trade businesses, expands HPG’s serviceable customer base and provides AFSL capability not previously held internally. Commentary also suggested VIZ could become a broader platform for future lending and financial products over time.  

Hipages’ guidance is for revenue of $90-$91 million, with free cash flow of $8-$10 million.

Hipages shares were changing hands for 74 cents on Wednesday, well down on the high over the past 12 months of $1.50.

Shaw and Partners has a price target of $2.50 on the shares, implying a return of well over 200%.

The company is valued at $101.3 million.

The post This ASX technology stock could more than triple in value: Broker appeared first on The Motley Fool Australia.

More reading

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• Why CBA, Healius, Paladin Energy, and Temple & Webster shares are sinking today
• Zip shares sink after court loss. Is this ASX comeback stock in trouble?
• Budget 2026: 3 investing changes you need to know about
• Why CBA, Core Lithium and Fortescue shares are making waves on Wednesday

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hipages Group. The Motley Fool Australia has recommended Hipages Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

As you’ve no doubt heard about by now, last night saw the 2026 budget handed down.

Most Federal Budgets are blockbuster events, particularly for those interested in politics, economics, or both. But the one handed down last night was something special. Regardless of how one views the policy changes that Treasurer Jim Chalmers unveiled, it cannot be denied that this is one of the most ambitious and consequential budgets Australians have seen in years.

Today, let’s break down three major tax changes that will affect ASX investors.

3 budget changes that investors need to know about

Capital gains tax (CGT) reform

One of the biggest changes coming to ASX investors is the reform of the capital gains tax (CGT). As we’ve already discussed today, CGT is the tax that most ASX investors would already be intimately familiar with, given it is applied to the sale of investable assets like shares. Since changes were made to the CGT in 1999, all gains on assets held for longer than 12 months were eligible for a 50% discount.

However, from 1 July 2027, CGT will revert to its pre-1999 structure of using inflation indexing rather than a flat discount rate. This means that capital gains will be liable on all proceeds from selling investable assets. Investors will only be able to deduct inflation from assets owned longer than 12 months.

A 30% minimum rate will also apply. Plus, any assets owned prior to 1985 will also become taxable for the first time.

Negative gearing abolished

Another big change announced in last night’s budget was the abolition of negative gearing. This controversial policy has had its critics for years. It mostly applies to property investing, though. Negative gearing refers to the practise of being able to deduct a net loss from an investment property against other sources of income. It is beloved by many investors, particularly those in high-income tax brackets.

However, this policy has effectively been abolished for most investors. Any property purchased after last night will not be able to be negatively geared going forward, with investors only able to use net losses to offset against future income earned from the property itself.

There are exceptions for new builds and for properties that have already been purchased. Investors also have a grace period before the changes kick in on 1 July 2027. Even so, this is a major change to the Australian investing landscape.

A minimum 30% tax rate for trusts

Our final policy change that will impact investors is a new minimum tax rate for trust distributions. Until now, trusts have functioned as pass-through vehicles for income. The practice of ‘income splitting’, where income is funnelled from the earner to other people (often family members) through a trust, has long been controversial.

This has been addressed in the budget, with a new minimum tax rate of 30% to apply to all discretionary trust distributions. These changes will kick in on 1 July 2028, giving investors a couple of years to get their affairs in order.

Again, there are exceptions. Farmers will be exempt. As will charitable, superannuation, and testamentary trusts. But this is still a change that will affect many investors.

The post Budget 2026: 3 investing changes you need to know about appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.