The 2026 property tax changes are some of the most significant changes for Australian property investors in years. The key areas are negative gearing, Capital Gains Tax, cost base indexation, SMSF residential property borrowing, trust structures, existing property grandfathering, new build investment incentives, and record keeping for depreciation and CGT.
The ATO has stated that the CGT and negative gearing reforms were announced as part of the 2026-27 Federal Budget and are intended to apply from 1 July 2027.
For Koste users, the practical message is simple: property records now matter more than ever. Investors should review their purchase contracts, settlement statements, depreciation schedules, capital works claims, renovation invoices, CGT cost base information, SMSF property documents, and ownership structure — and seek accountant advice.
Koste can help investors understand where depreciation, CGT cost base records and property deductions may need to be reviewed before buying, selling or restructuring.
The investors who are best placed when tax laws change are those who have kept clean records throughout ownership — not just at the point of sale. The pressure point is not the tax itself; it is the inability to reconstruct the cost base accurately under new rules.
Commercial property is not the main target of the negative gearing or CGT changes, so investors with commercial holdings need separate analysis. SMSF property is affected differently again, particularly where residential borrowing is involved. Trust structures are subject to their own proposed minimum tax rules.
Speak with your accountant or tax adviser before making any decisions about buying, selling, refinancing or restructuring.
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