16/06/2026
The Federal Budget has generated significant discussion across the property market, and many investors may be looking for guidance on what the announcements mean for their property decisions.
Ray White Group’s Zac Snelling, Nerida Conisbee and Atom Go Tian hosted a webinar last week to help property investors cut through the noise. Key takeaways included:
1. Federal Budget changes
▫️Negative gearing: properties purchased before 7:30 PM AEST on 12 May 2026 are fully grandfathered. For properties purchased after this time, negative gearing remains until 30 June 2027; from 1 July 2027, losses can only be offset against rental income or future capital gains. New builds are exempt from these changes
▫️Capital gains tax (CGT): For gains arising after 1 July 2027, the 50% CGT discount will be replaced with inflation indexation for established properties. Gains on holdings prior to this date retain the 50% discount. New builds allow investors to choose the method, 50% discount or indexation, that produces the lower tax bill
2. Market fundamentals
▫️Demand vs. supply: property demand remains strong, driven by high population growth, while supply remains constrained with historically low national vacancy rates
▫️Price trends: while annual price growth is positive, it is slowing. The market is experiencing uncertainty, and open home attendance has halved since early 2026
▫️Construction sector: Australia is adding population faster than it is building homes. High material costs, labour shortages, and construction industry insolvencies continue to challenge housing supply
3. Considerations for investors
▫️Existing owners: those currently in the market are in a strong position, as existing tax treatments are preserved via grandfathering. Selling may mean losing these grandfathered benefits
▫️Advice: investors are encouraged to review financing, consult accountants, and communicate with property managers rather than making rushed, emotionally driven decisions
Watch the full webinar to gain further insight into this discussion:
https://www.youtube.com/live/MDoLwsOYi1U?si=pD7V6R__in0_vqru