Our Top 12 Investor FAQ's:

No. Negative gearing is not abolished. From 1 July 2027 it is quarantined on established residential property acquired after 7:30pm AEST on 12 May 2026: rental losses on that property can offset rental income or capital gains, but not salary or other income. New builds, and established property acquired before that cutoff, are not subject to the quarantine.

From 1 July 2027, negative gearing is quarantined on established residential property acquired after 7:30pm AEST on 12 May 2026. Rental losses on that property can offset rental income or capital gains, but not salary or other income. Established property acquired before that cutoff, and new builds, are not subject to the quarantine.

If you acquired established residential property before 7:30pm AEST on 12 May 2026, it is not subject to the negative gearing quarantine that starts on 1 July 2027. Property acquired after that cutoff is. The favourable treatment is tied to the acquisition date, so a holding bought before the cutoff keeps it.

The favourable treatment is tied to property acquired before 7:30pm AEST on 12 May 2026, so it does not transfer to a replacement. If you sell a pre-cutoff established property and buy another established property after that cutoff, the new one is subject to the 1 July 2027 negative gearing quarantine. The sale itself is a CGT event under the rules applying at the time.

From 1 July 2027, the 50% capital gains tax discount is replaced by two mechanisms: cost-base indexation, and a 30% minimum tax on net capital gains for individuals, trusts and partnerships. The change applies to gains arising on or after 1 July 2027. Gains realised before that date keep the existing discount treatment.

From 1 July 2027, capital gains are calculated by indexing the asset's cost base for inflation instead of applying the 50% discount. Tax is assessed on the real, inflation-adjusted gain, and a 30% minimum tax applies to net capital gains for individuals, trusts and partnerships.

Self-managed super funds using limited recourse borrowing arrangements to acquire property face a change commencing on or around 10 August 2026. Trustees with an LRBA acquisition in progress need financing and structure resolved ahead of that date. Trustees who have been meaning to get to it now have a fixed date, not an open-ended intention.

New builds are not subject to the negative gearing quarantine that applies to established residential property from 1 July 2027. The reform treats new builds, and established property acquired before 7:30pm AEST on 12 May 2026, more favourably, keeping investment directed toward new housing supply rather than existing stock.

The reform does not set borrowing limits, but it changes the after-tax cash flow that supports a loan. From 1 July 2027, quarantined losses on affected established property no longer reduce tax on other income, and a tightening credit market compounds this. At mortgage rates around 6.4%, only 0.8% of suburbs are cash-flow positive.

The negative gearing and CGT changes take effect on 1 July 2027, so there is a defined window to review before then. The disciplined approach is sequencing, not urgency: confirm whether current structures still work, action what the 9 August 2026 bare trust deadline requires, assess what the credit environment makes serviceable, then review the portfolio, in that order.

The Ramsey Portfolio Stress Tester runs a residential property portfolio against five scenarios and returns a Survival Score, showing how current holdings and structures perform under changed tax, rate, and credit conditions. It is the starting point for deciding which reform decisions apply to a specific portfolio.