Property Investment
Negative Gearing & Property CGT
Negative Gearing & Property CGT
— The New Rules
The 2026 Federal Budget fundamentally splits property investors into three groups. Whether you keep your tax breaks depends entirely on what you own and when you bought it.
▶ Watch the video explainer →The Three Pathways
1
Grandfathered Owner
Fully Protected
You owned the property (or had a contract exchanged) before 7:30 PM on 13 May 2026. Nothing changes for you.
Tax treatment: Full negative gearing deductions against salary. Old 50% CGT discount (hybrid after July 2027).
2
New Build Buyer
Fully Exempt
You buy a brand-new, newly constructed home at any time. Government wants more supply, so new builds are carved out entirely.
Tax treatment: Full negative gearing deductions. New build buyers also get choice of old or new CGT rules on disposal.
3
Post-Budget Established Buyer
Quarantined
You buy an existing (established) residential property after Budget Night. Your rental losses can no longer offset your salary.
Tax treatment: Losses quarantined in property bucket. Can only offset future property income or capital gains.
Worked Example — Negative Gearing
Assume: $160,000 salary, $10,000 annual property loss.
Grandfathered / New Build (Before Rules)
Salary$160,000
Property Loss Offset−$10,000
Taxable Income$150,000
Post-Budget Established Property (New Rules)
Salary$160,000
Property Loss (Quarantined)$0 offset
Taxable Income$160,000
Calculator →
Run your own numbers in the property CGT calculator
Debates →
Will removing gearing increase housing supply? Both sides.
Fact Checks →
Is negative gearing really "abolished"? We checked.