12/05/2026
1. If you already owned property BEFORE 12 May 2026
✅ Existing negative gearing stays
✅ Existing CGT treatment grandfathered
✅ No immediate changes until sold
Good news for current investors:
Your current tax benefits remain protected.
2. If you purchase residential property AFTER 12 May 2026 but BEFORE 1 July 2027
Established Property
• Temporary negative gearing allowed during transition
• Losses may later become quarantined to residential income only
New Build Property
• Full negative gearing retained
• Can still offset against salary & other income
3. From 1 July 2027
Established Residential Property
❌ No traditional negative gearing
• Rental losses can only offset future residential property income/gains
New Build Residential Property
✅ Negative gearing remains available
• Can still offset wages and other taxable income
⸻
4. Capital Gains Tax (CGT) Reform — From 1 July 2027
Current Rule:
50% CGT discount after 12 months
New Rule:
• Discount replaced with inflation-indexed cost base method
• Minimum 30% effective tax floor on gains
• Existing accrued gains grandfathered
For new builds:
Investors may choose the better outcome
(Discount or indexed method)
5. Trust Tax Changes (From 1 July 2028)
• 30% minimum tax floor on discretionary trust distributions
• Designed to reduce income-splitting advantages
