For Property Investors
⚠️ Negative Gearing Changes — From 12 May 2026
Negative gearing concessions will be restricted on new purchases of established residential properties acquired after 7:30pm AEST on 12 May 2026. Properties purchased before that time (including contracts exchanged but not yet settled) retain existing concessions until sold.
Importantly, negative gearing remains fully available for eligible new residential builds, commercial property, and shares. Properties held in SMSFs and widely held trusts are also excluded from the changes.
If you own established investment properties acquired before the budget date, your current negative gearing position is protected — but any future purchases of established properties will be subject to the new rules.
⚠️ Capital Gains Tax — Significant Changes From 1 July 2027
This is one of the most consequential changes in the budget. From 1 July 2027, the current 50% CGT discount will be replaced with a two-part system:
Cost base indexation returns (similar to the regime in place before 1999) — adjusting the asset's cost base for inflation before calculating the gain
A 30% minimum tax on capital gains will apply — meaning if your effective tax rate on the gain would be below 30%, you pay additional tax to bring it to 30%
These changes apply to individuals, trusts, and partnerships. SMSFs are excluded — the CGT discount within super is not affected.
Small business CGT concessions are preserved. If you're selling a small business and qualify for the small business CGT concessions, those rules remain in place.
The effective date matters: these rules apply to assets sold from 1 July 2027. If you're considering selling an investment property, shares, or a business interest, the timing of that sale relative to this date could have a significant impact on your tax outcome.
