Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (49 of 2026)

Schedule 2   Limit negative gearing for residential property to new builds

Income Tax Assessment Act 1997

2   After subsection 110-38(8)

Insert:

(8A) Expenditure does not form part of any element of the cost base to the extent that section 26-155 prevents it being deducted.

Note: Section 26-155 denies deductions for the excess of residential dwelling related expenditure over residential dwelling related income.