28/05/2026
The May 2026 Federal Budget has introduced some of the most significant property tax changes Australians have seen in years.
According to recent coverage from CommBank and the Prime Minister's official announcement on 12 May 2026, the government will limit negative gearing to new builds from 1 July 2027, while replacing the 50 percent capital gains tax discount with inflation-adjusted indexation and introducing a 30 percent minimum tax rate on realised gains.
The government has projected these changes, combined with a $2 billion housing infrastructure package, will support around 75,000 additional first home buyers entering the market over the next decade.
For people considering their next move, the takeaway is fairly clear. Established investment properties will likely face less investor competition, which may ease some pressure for owner-occupiers. At the same time, new builds remain favourably treated under the new arrangements, which is expected to redirect investor interest toward newly constructed homes and apartments.
CommBank has already revised its 2026 national dwelling price growth forecast down to 3 percent, reflecting both the policy changes and the impact of recent rate rises.
From what we are seeing at build2grow, these shifts are giving buyers, investors, and developers a lot to think about. Decisions that were straightforward six months ago now require a closer look at long term strategy, timing, and the type of property being built or purchased.
In a market shaped by policy as much as price, staying informed has rarely been more important.
