14/05/2026
The FirstâHome Buyer Trap Nobodyâs Talking About
The Budget changes donât just âhelp FHBs get inâ.
They make it harder for them to build wealth the way previous generations did.
What actually changes for FHBs buying established after budget night:
⢠Negative gearing on existing properties bought after budget night is removed
⢠The 50% CGT discount ends from 1 July 2027
⢠Itâs replaced with an inflationâindexed CGT system with a minimum 30% tax on real gains
⢠Only new builds keep the 50% CGT discount
⢠PPOR + 6âyear rule still apply, but anything outside that falls under the new CGT system
So a typical FHB who buys established, lives in it, rents it out later and sells after 2027 will face:
⢠No negative gearing
⢠No 50% CGT discount on any taxable gain
⢠A weaker ability to use their first home as a steppingâstone investment
Meanwhile, investors in new builds still get negative gearing and the full 50% discount.
Same market. Different rules. Very different outcomes.
