Property Tax Changes
The current government position is that from 1 July 2027, negative gearing for residential property will be limited to new builds, with properties held before 7:30pm AEST on 12 May 2026 exempt from the changes. Treasury also states new builds can continue to be negatively geared before and after 1 July 2027.
26 expert articles in this category, written by Koste's Chartered Quantity Surveyors.
What records should investors keep now?
With the 2026 Budget reforms, property records are more important than ever. Keep your depreciation schedule, capital works records, renovat…
What is changing with negative gearing from 1 July 2027?
From 1 July 2027, rental losses on established residential properties bought after Budget night (12 May 2026) will be ring-fenced against pr…
Can I keep grandfathered negative gearing if ownership changes?
This is an unresolved policy question — most analysts expect that changes to ownership (such as adding a co-owner, refinancing, or transferr…
Can I transfer property into a trust before the rules change?
Transferring property into a trust triggers stamp duty and CGT on the disposal — even between related parties. In most cases, this is not a …
Do trusts get the CGT discount or indexation?
Discretionary trusts can pass the 50% CGT discount through to individual beneficiaries, but companies receiving trust distributions do not g…
Can a trust negatively gear property?
A trust can run a rental property at a net loss, but trust losses are quarantined inside the trust and cannot be distributed to beneficiarie…
What is the 30% minimum tax on capital gains?
A legislated minimum 30% effective tax rate on capital gains ensures that high-income investors pay at least 30 cents in every dollar of cap…
Will the CGT discount be replaced by indexation?
Yes — under the legislated CGT reforms, from 1 July 2027 the 50% CGT discount for individuals is replaced by an indexation method for capita…
Should I buy a new build because of the negative gearing changes?
The legislated changes to negative gearing apply differently to new builds — new properties retain access to negative gearing even after the…
Should I buy before 1 July 2027?
Whether buying before the legislated tax changes take effect makes sense depends on your financial position, but there are legitimate reason…
What does grandfathering mean for negative gearing?
Grandfathering means that investors who currently own negatively geared properties are not affected by the legislated changes to negative ge…
Should I sell before the CGT changes start?
Do not sell only because tax rules are changing. Whether to sell before CGT changes start depends on your cost base, market conditions, loan…
Why are depreciation records more important under CGT indexation?
Depreciation records become more important under CGT indexation because the property's cost base and capital works history need to be unders…
How do the new CGT indexation rules affect property investors?
The legislated CGT indexation changes replace the current CGT discount model, from 1 July 2027, with cost base indexation and a minimum tax …
What Should SMSF Investors Do Before the Residential Borrowing Ban Starts?
SMSF investors considering residential property borrowing should urgently speak with their accountant, SMSF adviser, lawyer and lender befor…
How Do the 2026 Tax Changes Affect Property Held in Trusts?
Property held in trusts may be affected by CGT, negative gearing and proposed trust tax changes, depending on the type of trust and how inco…
What Records Should Investors Keep Because of the CGT and Negative Gearing Changes?
Investors should keep purchase records, sale records, renovation invoices, depreciation schedules, capital works summaries, ownership docume…
How Should Investors Compare New Builds and Established Property After the Tax Changes?
Investors now need to compare new and established property using after-tax cash flow, depreciation, CGT, borrowing costs and long-term growt…
Can SMSFs Still Borrow to Buy Commercial Property?
Current reporting indicates the SMSF borrowing changes are focused on residential property, not commercial property. SMSFs may still be able…
What do the SMSF residential property loan changes mean?
The Labor-Greens deal includes a ban on new SMSF borrowing arrangements (LRBAs) for residential property. Existing arrangements are expected…
How Do the CGT Changes Affect Depreciation Schedules?
The CGT changes do not remove the need for depreciation schedules. In fact, depreciation schedules may become more important because capital…
What Is the 30% Minimum Tax on Capital Gains?
The legislated CGT reforms introduce a 30% minimum tax rate on capital gains realised from 1 July 2027. This is intended to reduce the abili…
What Does Cost Base Indexation Mean for Property Investors?
Cost base indexation adjusts the original cost base of an asset for inflation when calculating capital gains. Under the legislated CGT refor…
Will Existing Investment Properties Be Grandfathered Under the New Tax Rules?
Existing residential investment properties held before the relevant cut-off are expected to receive grandfathering treatment. This means inv…
What Is Changing with Negative Gearing from 1 July 2027?
From 1 July 2027, negative gearing for residential property is intended to be limited to new builds. Investors who buy established residenti…
Understanding the 2026 Property Tax Changes for Investors
The major changes relate to negative gearing, Capital Gains Tax and SMSF residential property borrowing. From 1 July 2027, the proposed refo…
Free Property Calculators
Koste Chartered Quantity Surveyors · AIQS Member · RICS Member · TPB Registered · 1300 669 400 · info@koste.ai