12/05/2026
2026-27 Federal Budget (Budget Night Announcement-12/05/2026)
NEGATIVE GEARING CHANGES
The core change: From 1 July 2027, negative gearing on residential property is restricted to new builds only.
* If you bought before 12 May 2026:
- No change — you keep full negative gearing rights indefinitely until you sell
* If you buy after announcement:
- Existing Properties - Losses can only offset other residential property income, not salary/wages. Excess losses can be carried forward to future years.
- New builds — negative gearing retained (losses can still offset wages/other income).
* If you buy from 1 July 2027:
- Existing properties — no negative gearing
- New builds — negative gearing retained (losses can still offset wages/other income)
What counts as a “new build”:
- New apartments off-the-plan
- Construction on vacant land
- Knock-down rebuilds that increase the number of dwellings
Excluded entirely: Commercial property, shares and widely held trusts.
Link to Budget Paper Fact Sheet:https://budget.gov.au/content/factsheets/download/tax-explainers-negative-gearing-capital-gains-tax.pdf
