13/05/2026
🏡 Federal Budget 2026: Major Changes for Property Investors and Home Buyers
The 2026 Federal Budget proposes some of the most significant property tax reforms Australia has seen in decades. If you own investment properties, are planning to buy, or are considering building your wealth through property, these changes could have a major impact on your strategy.
🔑 Key Proposed Changes
✅ Negative Gearing Changes (From 1 July 2027)
Deductions on established residential properties purchased after Budget night may no longer be offset against your salary and wages. New residential builds are expected to remain eligible.
✅ Grandfathering Protection
Existing investment properties and properties purchased before the Budget cut-off are expected to retain current tax benefits.
✅ Capital Gains Tax (CGT) Reform
The current 50% CGT discount may be replaced with inflation-based cost base indexation, which could increase tax payable when selling investment assets.
✅ 75,000 More First Home Buyers
The Government estimates these reforms will help around 75,000 additional Australians enter the property market over the next decade.
✅ Trust Tax Changes
A proposed 30% minimum tax on discretionary trusts from 1 July 2028 could affect many family investment structures.
📉 What This Means for Investors
Reduced tax deductions on established properties
Lower after-tax cash flow
Potential reduction in borrowing capacity
Greater focus on new build opportunities
Increased need for strategic tax planning
🏗️ Opportunity for New Builds
Newly constructed properties are expected to continue qualifying for negative gearing, making them increasingly attractive for investors seeking tax efficiency and long-term growth.
📈 Strategic Planning Is More Important Than Ever
With these reforms on the horizon, now is the ideal time to review:
Your property investment strategy
Ownership structures (personal, trust, SMSF)
Borrowing capacity
Future capital gains exposure
📞 Book a FREE Property Strategy Session Today
At ARK Home Loans, we help clients structure their lending and investment strategies to maximise long-term wealth while navigating changing tax laws.
📱 0422 058 232
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