The Federal Budget introduced some important changes for property investors, but the impact will differ depending on when you bought or plan to buy.
If you already own an investment property
Properties held before 12 May 2026 are fully grandfathered, so the new changes should not affect how those existing investments are treated under the current rules.
If you’re thinking about buying an investment property
From 1 July 2027, two key changes will apply to new residential property investments:
- Negative gearing on established properties will no longer be deductible against your regular income. New builds will remain exempt and will continue to attract the existing 50% capital gains tax discount.
- Capital gains tax treatment will also move to an inflation-adjusted model with a 30% minimum tax rate.
If you’re considering a future purchase, it may be worth understanding how these changes could affect your strategy, borrowing capacity and the type of property you choose to buy.
Feel free to reach out – we’d be happy to talk through what this could mean for your next move
