17/05/2026
The Australian Federal Budget announced on 12 May 2026 introduces proposed changes that are expected to significantly impact the property market—particularly for investors.
Key measures relating to negative gearing and capital gains tax (CGT) could materially affect investment strategies and long-term returns.
One important concept to understand in this context is “grandfathering,” as it determines how these changes may apply to you.
What is grandfathering?
In simple terms, if you already own an investment property, you will generally retain the current tax benefits—such as negative gearing and CGT discounts—under the existing rules. The proposed changes are expected to apply primarily to properties purchased after the new legislation takes effect.
The illustration below outlines how these changes may impact different investors depending on when the property was acquired.
Disclaimer - This content is general information only and does not take into account your personal financial situation, objectives, or needs. It should not be considered financial or tax advice. You should seek independent advice from a licensed financial adviser, mortgage broker, or tax professional before making any investment or financial decisions.
