Property Investing and recent Federal Government announcements

The federal government’s proposed tax reforms are already reshaping conversations around property investing and home ownership.

Under the proposed changes that were outlined in the Budget, investors would generally only be able to negatively gear newly built residential properties from 1 July 2027. Existing investment properties purchased before 12 May 2026 would be exempt from the changes.

The government also plans to replace the current 50% capital gains tax discount with a system based on inflation indexation and a new 30% minimum tax rate on capital gains.

Why the government is making changes

According to the Budget papers, housing prices have increased much faster than wages over the past two decades, while home ownership rates among younger Australians have declined.

Treasury modelling suggests the reforms could lead to around 75,000 additional owner-occupiers over the next decade.

What could change in the market

If the reforms proceed, investors may increasingly focus on newly constructed homes and house-and-land packages.

At the same time, some buyers may reassess whether existing properties become less attractive as investment options.

How the changes could affect future buying decisions

The proposed reforms would not affect everyone equally, and there’s still political uncertainty around what legislation may eventually pass.

But if the changes proceed, they could influence property values, investor behaviour and lending strategies over time.

I can help you understand how the proposed reforms may affect your borrowing capacity, investment plans or future property decisions.