The Federal Budget, announced on Tuesday 12 May, introduces significant updates to Australian housing tax policy, impacting property investors and the broader real estate market.
🔗 Treasury (Australia)
https://treasury.gov.au
Under the new policy, negative gearing will be restricted to newly built investment properties from 1 July 2027. Existing investment properties will be grandfathered, meaning current arrangements will remain unchanged for those already holding established assets.
A one-year transition period applies until 1 July 2027, allowing investors to purchase under current tax settings before the changes take effect.
The Federal Government has also announced changes to the Capital Gains Tax (CGT) discount. The current 50% discount for assets held longer than 12 months will be replaced with an inflation-indexed system.
This means investors will be taxed only on real gains above inflation, rather than receiving a flat percentage discount.
🔗 Australian Taxation Office
https://www.ato.gov.au
These reforms are designed to:
Depending on your position in the property market, these changes may have a significant impact on investment strategy, a moderate indirect effect, or minimal effect if already structured within existing holdings.
Click below to read the full breakdown and understand how the Federal Budget may affect your property decisions:
https://www.raywhite.com/news-and-market-insights/federal-budget-explained
Australia’s property market is showing some interesting signs of change, with recent data suggesting that premium property markets may be beginning to stabilise while buyer activity in some more affordable, investor-heavy markets is weakening. For property owners and buyers across Caloundra and the Sunshine Coast, the shift is worth watching closely. While conditions remain mixed, … […]
Australia’s housing market is entering a period of adjustment, with higher interest rates, reduced borrowing capacity and changes to property investment settings putting pressure on buyer activity. But does a softer national market necessarily mean a major fall in property prices? Not necessarily. Recent data shows that the downturn is not being felt evenly across … […]