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Federal Budget Changes for Property Investors

June 2, 2026

Federal Budget Changes: What Property Investors Need to Know

The recent Federal Budget introduced some significant proposed changes for property investors. While these changes aren’t due to commence until 1 July 2027, it’s worth understanding what they could mean for your future investment plans.

Thinking About Buying an Investment Property?

If you’re considering purchasing an investment property in the coming years, two key changes have been proposed for new residential property investments from 1 July 2027:

• Negative gearing on established residential properties will no longer be deductible against your regular income.
• New builds will remain exempt from these changes and will continue to qualify for the existing 50% capital gains tax (CGT) discount.
• Capital gains tax is also proposed to move to an inflation-adjusted model, with a minimum tax rate of 30%.

While these changes may influence the type of property investors choose to purchase, there is still time before they take effect and the finer details may evolve.

Already Own an Investment Property?

For existing property investors, the impact is expected to be more limited.

Current proposals indicate that:

• Investment properties owned before 12 May 2026 will be exempt from the negative gearing changes.
• The proposed CGT changes would only apply to capital gains that accrue after 1 July 2027.

This means many existing investors may be largely unaffected, particularly in the short term.

What Does This Mean for You?

If you’re planning to purchase an investment property, now is a good time to understand how these proposed changes could affect:

• Your investment strategy
• Borrowing capacity
• Cash flow position
• The type of property you choose to invest in

As always, every investor’s situation is different. Tax outcomes and investment strategies should be considered alongside professional financial and taxation advice.

Considering Your Next Investment?

Whether you’re looking at your first investment property or expanding your portfolio, we’re here to help you understand your borrowing options and structure your lending correctly from the outset.

Get in touch with the Connected Finance team to discuss your plans and explore what may be possible.