13/05/2026
π Tax laws just changed, hereβs what property investors need to know
This weekβs Federal Budget introduced two major changes that directly affect property investors from 1 July 2026.
Whatβs happening?
First: negative gearing will be restricted for existing properties. If you buy an established home after budget night (12 May 2026), your rental losses can only be offset against rental income, not your salary or other income like before.
Second: the 50% CGT discount is being replaced with an inflation-based indexation system, plus a minimum 30% tax on capital gains. Youβll only pay tax on your real gain after inflation, but the floor is 30%.
Important: if you already own an investment property purchased before budget night, your current arrangements stay exactly the same.
Hereβs the part most people are missing
The government deliberately kept all existing benefits intact for new builds. Why? Because they need more housing supply.
That means if you buy a qualifying new build, you still get full negative gearing, losses deducted against all your income. You also get to choose between the 50% CGT discount or the new indexation system, whichever works better for you. On top of that, you get higher depreciation because everything is brand new, and fewer maintenance headaches compared to older properties.
While others are panicking about the changes, this is actually an opportunity if you move in the right direction.
So what should you do?
No need to panic. But donβt wait too long either.
As the market catches on to this difference, demand for new builds will increase and those who act early usually get better options.
MOVE-IN READY HOME - BRAND NEW HOME β FIXED PRICE, ZERO STRESS | TURNKEY LIVING $ 1,150,000 - BUSHMEAD WA 6055
https://www.realestate.com.au/property-house-wa-bushmead-150763956