Generation Development Group's (ASX:GDG) tax-effective products are expected to gain more interest as changes in super tax concessions approach, Jefferies said in a Monday note.

The May 2026 Australian Federal Budget is expected to abolish the 50% Capital Gains Tax Discount, to be replaced by an inflation indexing system, which is likely to improve the relative attractiveness of Generation Development's investment bond offering.

Investment bonds are taxed at up to 30% on all earnings, with no distinction between capital gain and income. Property investors are the single biggest beneficiaries of the discount, and investment bonds may become more appealing.

The investment firm assigned a buy rating on Generation Development with a price target of AU$6.35 per share.