Changes to Negative Gearing and Capital Gains Tax
Own an investment property? Here’s what you need to know.
Changes to negative gearing and Capital Gains Tax (CGT) for investment properties are coming from 1 July 2027. The important message is that if you owned your investment property before 12 May 2026, your existing negative gearing arrangements are protected and can continue while you own the property.
When it comes to CGT, any eligible capital growth built up before 1 July 2027 can still receive the existing 50% CGT discount. It’s only the growth from 1 July 2027 onwards that moves to the new system, which uses inflation-based indexation and introduces a minimum 30% tax rate.
If you’ve been thinking about reviewing your investment property — whether that means holding long term or considering a sale — now is a good time to start planning and speak with your accountant about how the changes apply to you personally.
It may also be worth speaking with your accountant about obtaining an independent property valuation around 1 July 2027. This can help establish your property’s value at the changeover date, making it easier to separate the capital growth that occurred before the new rules from any growth that occurs afterwards.
From our side, we’re always happy to provide an up-to-date market appraisal and insight into the current rental market, so you have the property facts you need to help make an informed decision. Get in touch with our team here.