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Property Tax Changes · Koste Knowledge Base

Should I buy before 1 July 2027?

Quick Answer

Whether buying before a proposed tax changes deadline makes sense depends on your financial position, but there are legitimate reasons investors are considering purchasing before key dates.

Should you buy before the proposed tax change dates?

Proposed changes to negative gearing and CGT rules have created urgency in the property investment market, with many investors asking whether they should buy before a commencement date — often cited as on or around 1 July 2027 — to lock in current tax treatment.

What is at stake

If changes to negative gearing take effect, properties purchased after the commencement date may no longer allow investors to offset net rental losses against their salary and other income. Instead, losses might be quarantined and only usable against future rental income or capital gains.

If grandfathering applies to properties owned before the cut-off date (as widely reported), properties purchased now would retain current negative gearing treatment indefinitely — regardless of future rule changes.

Arguments for buying before the cut-off

  • Lock in grandfathering protection. Owning the property before the cut-off means your tax treatment is based on current rules, not future ones.
  • Preserve current negative gearing benefits. If your tax position benefits from offsetting rental losses against salary, acting before the change protects that.
  • Avoid potential competition. If many investors rush to buy before the deadline, prices may rise — buying earlier may mean buying at a better price.

    • Arguments for caution

  • The policy is not yet legislated. Acting on unconfirmed proposals carries risk. The rules may change, be delayed, or not pass at all.
  • Buying the wrong property is worse than missing the deadline. Location, quality, and value fundamentals matter more than tax optimisation over a long holding period.
  • Financing conditions matter. Interest rates, your borrowing capacity, and serviceability should drive timing decisions as much as tax policy.
  • The first-year cost is real. Stamp duty and acquisition costs are significant — rushing a purchase to beat a deadline without proper due diligence can be expensive.

    • What to do

    • Speak to a financial advisor and tax accountant about your personal situation
    • If you were already planning to buy, the proposed changes may provide additional reason to proceed now
    • If you were not yet ready — financially or in terms of property selection — do not let tax deadlines drive poor investment decisions

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    Written by Koste Team · Koste Chartered Quantity Surveyors · AIQS Member · RICS Member · TPB Registered · 1300 669 400 · info@koste.ai