Changes to CGT and Negative Gearing

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’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 (CGT) treatment will also move to an inflation-adjusted model with a 30% minimum tax rate.

If you already own an investment property

The impact of these changes on existing investments will be limited:

• Properties held before the announcement (7:30pm AEST, 12 May 2026) will be exempt from the negative gearing changes.

• The CGT reforms will only apply to gains accruing after 1 July 2027.

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.

Thinking about purchasing an investment property?

Feel free to reach out - we’d be happy to talk through what this could mean for your next move.