What’s Happening?

The 2026-27 Federal Budget has created plenty of headlines about property investment and the future of negative gearing.

But is negative gearing actually gone?

No, it is changing, but there are still significant opportunities for property buyers and investors.

Under the proposed reforms, negative gearing would continue for eligible new homes, existing investments would remain protected, and established properties would still retain certain deductions.

The property market is not closing its doors. The proposed changes simply make the property you choose, when you purchase and how your loan is structured more important.

Where Negative Gearing Is Staying?

From 1 July 2027, investors would still be able to negatively gear eligible new residential properties.

This could include:

• Newly constructed homes
• Eligible off-the-plan purchases
• New homes built on previously vacant land
• Certain developments that add to the overall housing supply

For buyers already considering a new house, apartment or investment property, this means negative gearing may remain an available part of their strategy.

Not every recently built or renovated property will qualify, so it is important to confirm the property’s eligibility before committing.

Are Existing Investments Protected?

Properties held before 7:30 pm AEST on 12 May 2026, including eligible properties already under contract, are proposed to be grandfathered.

This means current owners would generally continue using the existing negative gearing arrangements while they retain ownership of the property.

What Changes for Established Properties?

For established residential properties acquired after Budget night, rental losses would no longer be deductible against unrelated income, such as salary and wages, from 1 July 2027.

However, those losses would not simply disappear.

They could still be:

• Applied against income from other residential properties
• Applied against applicable residential property capital gains
• Carried forward for use against residential property income in future years

Established property investment, therefore, remains an option. Buyers may simply need to give greater consideration to rental yield, cash flow, borrowing capacity and their longer-term plans.

What About Capital Gains Tax?

The Budget also proposes changes to the Capital Gains Tax (CGT) discount from 1 July 2027.

The existing 50% discount would generally be replaced with an inflation-based adjustment, together with a minimum 30% tax rate on real capital gains for affected taxpayers.

Importantly, the proposed reforms would only apply to gains arising after 1 July 2027.

Investors purchasing eligible new builds would also be able to choose between the existing 50% CGT discount and the proposed inflation-based arrangements.

What Does This Mean for Buyers?

The key message is not that property opportunities are disappearing.

It means buyers may need to be more selective and informed.

Eligible new properties may become increasingly relevant for investors, while established homes can still suit buyers focused on rental returns, location, capital growth or long-term ownership.

For first-home buyers, the proposed shift toward new housing supply may also create additional options to explore as more developments enter the market.

There is no single property or loan strategy that suits everyone. Your deposit, income, existing debts, borrowing capacity and future plans all need to be considered together.

Before ruling a property in or out based on a headline, speak with professionals who can help you understand the complete picture.

What about business owners and trusts?

Many of our clients purchase property through companies, trusts or self-employed business structures.

While the proposed property tax reforms have generated significant discussion, the impact will vary depending on how assets are owned and each client’s long-term objectives.

Trusts and companies continue to offer benefits such as asset protection, succession planning and investment flexibility; however, proposed changes to negative gearing and capital gains tax may alter the relative advantages of different ownership structures.

As lending policies, tax settings and market conditions continue to evolve, obtaining tailored mortgage, accounting and legal advice has never been more important when building a long-term property investment strategy.

Could Now Be the Right Time to Explore Your Options?

Whether you are preparing to purchase your first home, considering a new investment, exploring a new build or reviewing your current loan, opportunities remain available.

The right loan structure can make a meaningful difference to your purchasing power, repayments and long-term plans.

Speak with the Loan Nerds team today to discuss your options or arrange an appointment at our new Parramatta office.

Updates

Loan Nerds Has Moved

We are excited to announce that Loan Nerds has moved from Horwood Place to our new office just around the corner:

Suite 302, 55 Phillip Street, Parramatta NSW 2150

Our new location gives us a more dedicated, professional and office-focused environment for meeting with clients and discussing their lending goals.

It provides greater privacy for appointments and a more comfortable space to work through home loans, investment lending, refinancing and more complex financial scenarios.

It is still the same Loan Nerds team and the same straightforward guidance, now in a space better suited to helping our clients plan their next move.

A Fresh Chapter for Loan Nerds

Our new office also marks the beginning of a fresh chapter for Loan Nerds.

You will be hearing from us more regularly through our newsletters, website and social media.

We will be sharing:

• Clear explanations of lending and property news
• Timely interest-rate and Budget updates
• Practical information for home buyers and investors
• Refinancing and loan-management insights
• News and updates from the Loan Nerds team

Our goal is simple: to cut through the noise, explain what matters and help more Australians move forward with confidence.