13/05/2026
Federal Budget Announcement 2026/2027
The 2026–27 Federal Budget makes major changes to how property and investment income is taxed in Australia. The two biggest reforms affect:
• Negative gearing (how investors claim losses)
• Capital gains tax (CGT) (how profits are taxed when selling assets)
1. 🧾 Negative gearing (what’s changing)
How it worked before the budget
Negative gearing allowed investors to:
• Buying a property
• Make a rental loss (expenses > rent)
• Use that loss to reduce their salary tax
👉 Example:
• Rental loss: $10,000
• Your salary tax drops by using that $10,000 deduction
This made property investment especially attractive for high-income earners.
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🚨 What the 2026–27 Budget changes
From 1 July 2027:
• ❌ You can NO longer use losses from newly purchased existing properties to offset wage income
• ❌ These losses are “ring-fenced” (locked inside property investments)
• ❌ You can only use losses against:
o rental income from other properties
o or future capital gains from property
• ✅ Existing properties are mostly protected (grandfathered)
• ✅ New builds are still fully eligible for negative gearing
• You can still invest in property, but you can’t use it to reduce your job tax as easily anymore.” If you want tax benefits, invest in new housing—not existing homes.”
2. 📈 Capital Gains Tax (CGT) (what’s changing)
How CGT works today
When you sell an investment (property, shares, etc.):
• You pay tax on profit
• BUT if held for 12+ months, you get a 50% discount
👉 Example:
• Profit = $200,000
• Tax applies to only $100,000
This has encouraged long-term investing.
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🚨 What the 2026–27 Budget changes
From 1 July 2027:
❌ The 50% CGT discount is removed
✅ Replaced with inflation adjustment (you are taxed on “real gain”)
⚠️ A minimum 30% tax applies in some cases
🆕 New builds may still choose between old and new systems
If you are still worried about how this changes would affect, let’s have a chat.
Visit us : qubemortgage.com.au
