15/05/2026
๐ก Can I still claim negative gearing if my PPOR becomes an investment property?
This is one of the BIGGEST questions investors are asking after the 2026 Federal Budget announcements.
Short answer: โ
Potentially YES.
Based on the Budget proposals so far, existing homes are expected to be โgrandfatheredโ.
โก If you own your home before the proposed cutoff date and later convert it into an investment property, you may still access current negative gearing rules.
Example:
Bought your PPOR in 2022
Move out in 2028
Property becomes an investment property
Key question:
๐ โWhen did you acquire the property?โ โ not โwhen did it become an investment property?โ
โ Important reminders:
These are Budget proposals only โ not law yet
Ownership date, contract date, and property classification matter
Consider loan purpose, CGT, main residence exemption, and ownership structure
๐ก The Government seems to be encouraging new builds over established properties โ which could affect:
Borrowing strategies
Cashflow planning
Property selection
Investment structures
๐ข Advice: Avoid emotional decisions based purely on headlines. The fine print matters!
General information only โ not personal tax advice.