Property Investor Decision Flow Chart: What the 2026–27 Federal Budget Could Mean
If you own investment property, the proposed 2026–27 Federal Budget changes could affect how capital gains tax and negative gearing apply to you.
What Is This Flow Chart About?
It helps property investors understand the proposed changes to the CGT 50% discount and negative gearing.
The rules shown are proposals only and are not yet law.
The outcome depends on when the property was bought, when it is sold, and whether it qualifies as a new build.
Why Does It Matter?
The proposed CGT changes may affect properties sold on or after 1 July 2027.
The proposed negative gearing changes may apply to properties acquired on or after 13 May 2026.
Some properties may be grandfathered under the current rules depending on the timing.
CGT 50% Discount
If a property is sold before 1 July 2027, the current CGT rules will generally continue to apply.
If a property is sold on or after 1 July 2027, the new rules may apply.
For some properties, the gain may need to be split between pre- and post-1 July 2027 periods.
New builds may have different treatment depending on whether they meet the proposed test.
Negative Gearing
Properties acquired before 13 May 2026 may continue under the current rules.
Properties acquired on or after 13 May 2026 may be subject to the new rules.
Eligible new builds may still allow deductions under the current-style treatment.
Established properties may have losses quarantined from 1 July 2027.
Key Takeaways
These changes are only proposed at this stage.
Timing of the contract and sale date will be very important.
New build status may determine whether current rules continue to apply.
Property investors should review their position early and get advice specific to their circumstances.
