On 12 May 2026, as part of the 2026–27 Federal Budget, the Government announced it would reform negative gearing and capital gains tax (CGT) arrangements.
This measure is not yet law.
These changes, which are intended to apply from 1 July 2027, will:
- limit negative gearing for residential property investments to new builds
- replace the 50% CGT discount for individuals, trusts and partnerships with cost base indexation and a 30% minimum tax rate on capital gains.
The impact of these changes on existing investments will be limited. Properties held at announcement (7:30pm AEST 12 May 2026) will be exempt from the negative gearing changes, while the CGT reforms will only apply to gains that accrue after 1 July 2027.
For more information, see: