13/05/2026
🏠 Significant Changes to Australian Property Investment: What You Need to Know!
The Australian Federal Government has just announced a major shake-up for property investors, set to take effect from 1 July 2027. The core goal is to shift investor focus toward increasing housing supply.
Here is a quick breakdown of the proposed reforms:
1 Negative Gearing (Abolished for Established Properties): Negative gearing will be restricted. Only newly built homes will be eligible for this tax benefit. Established residential properties purchased after 7:30 PM (AEST) on 12 May 2026 will no longer allow investors to offset rental losses against their salary or other non-property income. Instead, these losses must be quarantined to offset future rental income or capital gains.
2 Capital Gains Tax (50% Discount Scrapped): The universal 50% CGT discount will be replaced with a revised Cost Base Indexation model. A minimum 30% tax rate will also apply to capital gains. New builds will have a carve-out, allowing investors to choose between the indexation model or the original 50% CGT discount.
3 Grandfathering Provisions: If you already own an investment property or signed a contract before the 12 May 2026 deadline, your current tax treatment is grandfathered and will not change.
What this means for you: This represents the most significant change to the property tax landscape in decades. It will reshape how investors select properties and calculate long-term returns.
As your ProMax Australian Realtor, I am here to help you navigate these changes and identify the best strategies for your portfolio. Don’t navigate these waters alone.
📞 Contact us today for a complimentary strategy session!
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