Treasurer Jim Chalmers last night delivered the 2026-27 Federal Budget. Parts of the tax framework around Australian property were adjusted, while the fundamentals remain intact. Population growth, chronic undersupply and the enduring appeal of home ownership continue to underpin the market.
We breakdown how these changes could affect different people in the housing market.
What's actually changed?
- Negative gearing on established homes changes from 1 July 2027, with new builds preserved
- The 50per cent(pc) Capital Gains Tax (GCT) discount is replaced by inflation-indexation and a 30pc minimum on real gains
- Negative gearing for existing investors is grandfathered for purchases before 7:30pm on 12 May 2026
- Commercial property remains exempt from negative gearing changes
- $2billion is committed to enabling around 65,000 new homes.
Buyers gain clearer opportunities over time
Buyers considering a purchase in the current market may benefit from reviewing their borrowing capacity early, particularly as lending conditions, interest rates and property supply continue to shift.
Pre-approvals, construction lending options and tailored lending strategies may help buyers act with greater confidence when opportunities arise.
Owner-occupier demand continues to drive most established markets. First-home buyers may see modestly improved access as investor demand for established homes recalibrates.
New builds and house-and-land gain relative support. The foreign buyer ban on established homes has been extended to mid-2029.
Sellers are operating in a steady market
For homeowners planning to sell and buy again, reviewing existing loan structures before listing may help identify refinancing, bridging finance or equity access opportunities.
Understanding your finance position early can help reduce pressure during settlement and purchasing timeframes.
Well-presented, well-located homes remain strongly supported by owner-occupier demand.
Treasury modelling points to slower growth, not a fall. The right time to sell still depends on your circumstances and your local market not the headlines. Local, experienced agent advice matters more than ever.
Investors are encouraged to adjust, not react
Investors may benefit from reviewing lending structures, cash flow positions and long-term borrowing strategies ahead of the proposed changes taking effect from 1 July 2027.
Finance considerations such as fixed versus variable lending, equity access and lending for new builds may become increasingly important as investment strategies evolve.
Existing investors negative gearing arrangements are grandfathered. Reactive selling is rarely the right answer. Future investment will favour new builds, longer holds and yield-focused strategies.
Commercial property is exempt from the negative gearing changes.
We suggest you review any trust structures and timing with your financial adviser ahead of 1 July 2027.
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Disclaimer: This information is general in nature and does not consider your personal objectives, financial situation or needs. Before deciding whether to apply for a financial product, you should seek professional advice.
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