What the 2026 Federal Budget Means for Property Owners & Investors
The Federal Government has released the 2026 Budget, and this year brings some of the biggest changes to property taxation in decades. Our Finance Team has put together a simple summary of what matters most for homeowners, landlords and property investors.
- Negative Gearing Changes
The Government has announced that negative gearing will be restricted to new builds only from 1 July 2027.
What this means for you:
- Existing investment properties are grandfathered (no change to current arrangements).
- New investment purchases after 2027 must be new builds to qualify for negative gearing.
- Established investment properties may see reduced investor demand over time.
- Capital Gains Tax (CGT) Reform
The long-standing 50% CGT discount will be removed from 1 July 2027 and replaced with an inflation-indexed model.
What this means:
- Selling before July 2027 may result in a lower tax bill.
- Holding long-term investment property becomes less tax-advantaged.
- Expect more investor activity leading up to the transition date.
- Housing Supply & New Build Incentives
The Budget includes major funding to boost housing supply, including:
- Infrastructure support for new developments
- Planning system reforms
- Incentives for build-to-rent and new construction
Impact:
- New Home Builds become more attractive for investors.
- More opportunities for construction finance and off-the-plan purchases.
- Trust Taxation Changes
From 1 July 2028, discretionary trusts will face a 30% minimum tax on distributed income.
Impact:
- Investors using trusts may need to review their structure.
- Some may consider companies or fixed trusts as alternatives.
- Cost-of-Living Measures
A new Working Australians Tax Offset and other targeted relief measures will provide modest improvements to household cash flow.
Impact:
- Slight improvement in borrowing capacity for some clients.
- Helps soften the impact of rising living costs.
What Should You Do Next?
If you own investment property or are considering buying one, now is a good time to:
- Review your current loan structure
- Assess whether refinancing could improve your position
- Consider timing if you’re planning to sell
- Explore opportunities in the new-build market
- Revisit your investment strategy ahead of the 2027 tax changes
