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Property Tax Changes · Koste Knowledge Base

Should I buy before 1 July 2027?

Published 26 June 2026 · Last updated 19 August 2026

Quick Answer

Whether buying before the legislated tax changes take effect makes sense depends on your financial position, but there are legitimate reasons investors are considering purchasing before key dates.

Should you buy before the tax changes take effect?

The legislated changes to negative gearing and CGT rules have created urgency in the property investment market, with many investors asking whether they should buy before the 1 July 2027 commencement — 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.

Grandfathering applies to established residential property held before Budget night (12 May 2026), so properties acquired before that date retain current negative gearing treatment.

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 commencement is set for 1 July 2027. Diarise the date and confirm how the transition applies to your circumstances with your adviser.
  • 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 legislated changes may provide additional reason to proceed before 1 July 2027
    • If you were not yet ready — financially or in terms of property selection — do not let the tax deadline drive poor investment decisions

    Frequently Asked Questions

    Is 1 July 2027 a confirmed start date for the changes?

    Yes. The changes are legislated to commence on 1 July 2027.

    If I buy now, am I guaranteed to be grandfathered?

    Grandfathering applies to established residential property held before Budget night (12 May 2026). If your property qualifies, it is protected under the current rules — confirm your position with your adviser.

    Does this affect commercial property?

    Proposed changes are reported to affect residential property investments. Commercial property negative gearing is expected to remain available without restriction, though this is subject to final legislative detail.

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