12/05/2026
Budget changes, NOT as apocalyptic as expected!!
1. CGT changes not effective on existing properties until 1 July 2027. For new purchases, or after 1 July 2027 property is valued, and CGT will be payable on inflation adjusted amount of gain from that date, but to a minimum of 30%.
2. Negative gearing isnt really abolished. It has been deferred. It doesn't apply to existing properties (the thinking that they will be positive geared in a few years anyway), and you can carry the loss forward but to apply against the property, CGT or profits (not against your wage). Losses cant be captured immediately, which will impact borrowing capacity and cash flow.
The devil will be in detail, yet to come.
If you would like help finding a property that is more suited to the new framework, we are here to help.