Federal Budget Explained

What the 2026 Federal Budget may mean for property.

The 2026–27 Federal Budget included proposed changes that may affect buyers, sellers and investors. The information below is general only and should not be treated as financial, legal or taxation advice.

Proposed property tax changes

From 1 July 2027, proposed changes include limiting negative gearing for residential property investments to new builds, and replacing the 50 per cent capital gains tax discount with cost base indexation and a 30 per cent minimum tax rate on capital gains.

What this could mean for buyers

These changes are intended to reduce investor competition for some established properties and improve conditions for first-home buyers. However, the impact will vary by suburb, property type and buyer demand.

What this could mean for sellers

Sellers may see changes in buyer behaviour, particularly if investors shift their focus towards new builds. Established homes in strong lifestyle locations may still attract interest from owner-occupiers, upsizers and downsizers.

What this could mean for investors

Investors may need to review tax settings, ownership structures and long-term strategy before purchasing. Independent taxation and financial advice is strongly recommended before making investment decisions.

Important reminder

Budget announcements and proposed law changes can be complex. Before making a property decision, speak with a qualified accountant, financial adviser, conveyancer or solicitor.