12/05/2026
Big changes announced in the new Australian Federal Budget for property investors.
From July 2027:
• Negative gearing on EXISTING homes will largely end for new purchases made after Budget night.
• Investors will no longer be able to offset rental losses against their salary income on those properties.
• Existing investment properties are grandfathered (not affected).
• NEW builds will still keep negative gearing benefits to encourage more housing construction.
Capital Gains Tax (CGT) is also changing:
• The current 50% CGT discount is being removed for most future investment property gains.
• Instead, gains will be adjusted for inflation before tax is calculated.
• Family homes remain exempt.
The government says the goal is to improve housing affordability and push investment into building new homes rather than competing with first-home buyers for existing houses.
Property investors and economists are divided on whether this will help affordability or simply reduce rental supply and increase rents.
This is one of the biggest property tax changes Australia has seen in decades.