02/06/2026
The 2026-2027 Federal Budget is bringing some significant changes, and if you're a property investor in Queensland, understanding them now could be key to optimising your portfolio.
Here’s a quick look at what’s on the horizon and how it might impact your investment strategy:
🏡 Negative Gearing is Evolving:
From July 1, 2027, negative gearing will be exclusive to new residential builds. If you already own an investment property or purchase an established one before this date, you might still be able to negatively gear it under the current rules for a period. This means new builds could become even more attractive for offsetting losses.
📈 Capital Gains Tax Restructure:
Also from July 1, 2027, the 50% CGT discount will be replaced with a CPI cost base indexation model and a minimum 30% tax rate on real capital gains. What does this mean? The impact will vary based on how long you’ve held the property, inflation, and its growth. Importantly, any gains accrued before July 1, 2027, will still get the 50% discount. Consider getting a valuation before this date to establish your property's base value under the old rules!
🏗️ New Builds Take the Spotlight:
This budget really champions new residential construction. New builds will retain access to negative gearing and offer a choice between the existing 50% CGT discount or the new indexation model upon sale. This makes building or buying off-the-plan a potentially more tax-efficient option – but only for the first purchaser.
🧐 What This Means for Queensland Investors:
Queensland’s property market fundamentals remain strong with tight vacancy rates and population growth. However, expect investors to become more strategic. We may see increased interest in new builds, and a shift towards cash flow and long-term fundamentals for established properties. Well-located properties with solid tenants should continue to perform, but a more deliberate approach to investment is emerging.
It’s clear the landscape is shifting, and while this summary provides a general overview, your individual circumstances are unique.
We always recommend speaking with your accountant or financial adviser to understand the specific implications for your portfolio.
In the meantime, unlock your best rates out there! Call Unlocked: 1300 286 562 or visit: www.unlocked.com.au
