13/05/2026
📢 The budget has dropped, and I’ve spent the last day going through the fine print so you don’t have to.
Forget the clickbait headlines — here’s what actually changed and what it means in the real world for investors
🏡 A lot of headlines are making it sound like negative gearing is being completely abolished from 1 July 2027, but the reality is a lot more nuanced.
📉 Under the proposed changes, investors purchasing established properties after that date will no longer be able to offset rental losses against their personal salary income in the short term.
💡 However, those losses are not lost forever. They can still be carried forward and used to reduce tax on future rental profits across your portfolio, as well as reduce taxable capital gains when the property is eventually sold.
📊 What’s also being overlooked is the actual dollar impact for many investors. Based on ATO data referenced by Domain, the average annual negative gearing benefit is estimated to be around $7,000 in deductions. For someone on a 30% tax rate, that equates to roughly $2,000–$2,500 in yearly tax savings — often less than $50 per week.
📈 For most investors, the long-term drivers of property performance have always been factors like capital growth, rental demand, land value, infrastructure, and supply shortages — not just short-term tax deductions.
💰 There are also significant changes proposed to capital gains tax. Instead of the current 50% CGT discount, a system based on inflation indexation would apply from 1 July 2027, meaning investors would only pay tax on gains above inflation.
🔒 Importantly, properties already owned before the changes are expected to retain the existing rules, with gains accrued up to 1 July 2027 still assessed under the current framework, regardless of when the property is sold.
📈 The latest budget makes one thing clear — even the government is forecasting continued property market growth.
Australia’s housing shortage and strong rental demand haven’t gone away, and experienced investors have seen this pattern before.
During COVID and rising interest rates, many buyers waited on the sidelines while others quietly kept buying quality assets.
🏡 The fundamentals behind good property investing are still there.
And history shows waiting for the “perfect time” rarely works out the way people expect.
If you’ve been sitting on the fence, now is worth a conversation.
📞 Call me on 0433 777 423 or send a message
