For investors who own established property

Negative gearing is changing. Here is what still qualifies.

If you bought your investment property before 12 May 2026, nothing changes for it. The change is about what you buy next. From 1 July 2027 a loss on an established property can no longer offset your salary and the 50% CGT discount goes. New builds keep both. That is why investors who have only ever bought established are now looking at new, and why we built a toolkit for exactly that move.

Same $800,000 property, same loan, same rent

Worked example at a 47% marginal rate, $15,000 annual shortfall, $400,000 gain on sale

Establishedout of pocket each year, bought after 12 May 2026

$15,000

New buildout of pocket each year, after a $7,050 refund

$7,950

Establishedtax on the gain at sale, low inflation

$150,400

New buildtax on the same gain, 50% discount kept

$94,000

Oli Property, Property Tax Changes guide, May 2026, worked example. 47% marginal rate including Medicare levy. Sale scenario assumes 2% CPI and a $400,000 gain; at 6% CPI the sale outcomes are equal and the new build is still ahead on the refunds received while holding. General information, not tax advice.

Get the New-Build Investor's Toolkit

Three documents, free, by email: the 2026 rules with the $800,000 worked example, a 12-point off-the-plan checklist written for investors who have only bought established, and a step-by-step plan for making the switch. We will also tell you where the worked example project is.

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Three PDFs by email within a few minutes, written to be shown to your accountant
No call unless you ask for one
Prefer to talk it through? Book a discovery session, about an hour by video

General information only, not tax or financial advice. Confirm your position with a registered tax agent. We do not sell your details.

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The rules, plainly

Two dates. Three positions. Only one of them changes what you buy next.

12 May 2026

Budget night. An established property bought after this date loses the salary offset on its losses from 1 July 2027. Anything you owned before it is grandfathered.

1 July 2027

The 50% CGT discount ends for established property bought after Budget night. Gains are indexed to inflation instead, which is worth far less when inflation is low.

New builds

Keep the salary offset, keep full depreciation, and choose the 50% discount or indexation at sale, whichever is better at the time.

Already own

Nothing changes for property you held before 12 May 2026. The question is only about the next one.

2026-27 Federal Budget, 12 May 2026, as summarised in the Oli Property Property Tax Changes guide. Your position depends on the final legislation and your circumstances; confirm it with a registered tax agent.

Holding the property, each year

Factor	Established, bought after 12 May 2026	New build
Loss against salary	No. Losses only offset rent from the same property, or carry forward.	Yes. A $15,000 loss returns about $7,050 at 47%.
Depreciation	Minimal. Second-hand fittings cannot be claimed.	Building and fittings, in full.
When rates rise	You carry the whole increase.	Up to 47% of the increase comes back as refund.

Selling, $400,000 gain

Scenario	Established	New build
Low inflation, 2% CPI	Tax about $150,400	Tax about $94,000
Elevated inflation, 6% CPI	Tax about $28,200	Tax about $28,200, plus the refunds already received

Oli Property, Property Tax Changes guide, May 2026. Both properties bought in June 2026 for $800,000 and sold for $1,200,000; 47% marginal rate. Illustrative only.

If you have only ever bought established

Buying new is a different process. Not a harder one.

Six things that work differently, and what the toolkit does about each.

You buy from a plan, not an open home. Floor plans, inclusions and a contract replace the Saturday inspection. The checklist tells you what to read in each, and what to ask for when it is missing.
The deposit sits in trust until settlement. Usually 10%, with the balance due when the home is complete. The switch plan shows how to time that against the equity in what you already own.
Not every new build qualifies the same way. The tax treatment follows the dwelling, so the contract, the completion date and who occupies it first all matter. Part one of the toolkit sets out what to confirm with your accountant before you sign.
Depreciation is a schedule, not a guess. A quantity surveyor's report is the document that turns a new build into a larger refund. The checklist includes when to commission it.
The developer and the project are the risk. With established property you price the street. With new, you price the builder, the stage and the sunset clause. The 12-point checklist is built around that.
Location still decides the rent. New-build tax treatment does not make a poor suburb a good one. The toolkit's worked example is a brand new three-bedroom townhouse from $850,000, inside an established Melbourne suburb 10km from the CBD, which is rarer than it sounds.

Townhouse facades with brick, timber and pitched roofs, artist's impression

Why this precinct

A new precinct, inside an established suburb. That almost never happens.

Most new precincts are built on the city fringe. This one sits inside a gazetted comprehensive development plan: 66 hectares of former industrial land 10km from the CBD, with a new town centre, parks and streets funded as part of the plan. We name it when you enquire.

New amenity, inside a suburb where the schools, shops and freeway are already there. That is the combination a tenant pays for and an investor rarely gets at a new-build price.

New town centre10,000m2 retail, service and office

8.9ha of new parksOpen space across the precinct

1,000+ local jobsRetail, service and office

Schools already hereThree within the suburb

Freeway at the doorNew tunnel to the CBD, open since Dec 2025

10km to the CBDStraight line, west of the city

66ha

Master-planned precinct, 10km from the CBD

~3,000

New homes planned across the precinct

8.9ha

New parks and open space

$55.1m

Developer-funded transport and community infrastructure

Comprehensive Development Plan, Victorian Planning Authority. Figures are plan targets for the whole precinct, not for this release alone.

Why Oli Property

Research first. Property second.

Oli Property is part of the Oliver Hume Property Group, which has sold Australian residential property since 1954 and helped over 290,000 Australians buy and invest in new property.

Our research, led by Chief Economist Matt Bell, covers 4,800 suburbs and is relied on by government and ASX 200 companies. Every property we put in front of a client has been through our 60 data point review process first.

We have no reason to push you toward one outcome over another, which is why we run the numbers against our 60 data point review process, across 4,800 suburbs. If this project does not suit your position, we will tell you, and we will tell you why.

1954

Oliver Hume Property Group founded

290,000+

Australians helped to buy and invest in new property

4,800

Suburbs covered by our research

60+

Data points in every property review

One page, one offer

The rules changed. Your next purchase should not be a guess.

The New-Build Investor's Toolkit is free, arrives by email, and is written to be read alongside your accountant. If you would rather talk it through first, a discovery session with Cam or Adam is about an hour by video.

Cameron Yates and Adam Duster, Property Investment Specialists

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About the figures on this page

The worked example figures are from the Oli Property Property Tax Changes guide, May 2026, and are illustrative only. The $850,000 figure is a release price for a three-bedroom townhouse, not a median, and is subject to written confirmation. Distances are straight line.

General advice disclaimer

The information on this page has been prepared as a general guide only and does not constitute advice. It has been prepared without taking account of your objectives, financial situation or needs. Before acting on any information you should consider its appropriateness having regard to your own objectives, financial situation and needs, and seek independent advice from a qualified professional. Any forward looking statements are estimates only, are affected by a significant number of unpredictable factors, and there are no guarantees they will be achieved. Property markets perform at different rates and past performance is not an indicator of future performance. Taxation outcomes depend on individual circumstances and you should speak with a qualified accountant.

Mortgage brokerage is provided by MyFirstLoan.au Pty Ltd ACN 168 808 946, Australian credit representative number 564038 of Allied Financial Consulting Pty Limited ACN 059 732 419, ACL 393845. Loans are structured and managed by Homestar Finance, ACL 390860.

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