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Your Grandfathering Questions.
Answered.

What decides whether I am grandfathered?

The acquisition date. Established residential property acquired before 7:30pm AEST on 12 May 2026 keeps its existing negative gearing treatment. Property acquired after that moment is inside the quarantine that begins on 1 July 2027. New builds are treated favourably regardless. Grandfathering attaches to the specific pre-cutoff acquisition, not to you as an investor.

Does selling a grandfathered property lose the status?

Yes, in effect. The favourable treatment is tied to the specific pre-cutoff property, so it does not transfer to a replacement. Sell a pre-cutoff established property and buy another established property after the cutoff, and the new one falls inside the 1 July 2027 quarantine. The sale is also a CGT event under the rules applying at the time of disposal.

Why review a structure that is already grandfathered?

Because the reasons to review are separate from the grandfathering. The after-tax position of a portfolio has moved, the credit channel has tightened, and the market is two-speed. A structure built under the old economics may still be sound, or it may carry cost or risk that only shows up when tested against current rates and serviceability. Grandfathering protects the treatment, not the outcome.

What are the traps to watch?

Three. First, grandfathering does not survive a sale-and-replace: the replacement is a post-cutoff acquisition. Second, a disposal on or after 1 July 2027 is assessed under the new CGT method (indexation plus a 30% minimum tax), not the old 50% discount, so timing a sale matters. Third, structural changes to how a grandfathered asset is held can affect its treatment. Confirm any specific rollover or anti-avoidance provision before acting on a transaction.

Does the 9 August bare trust deadline apply to me?

The 9 August 2026 bare trust deadline is about structures being put in place, determined by contract exchange date rather than settlement. If you are not exchanging a new acquisition into a bare trust, the deadline is not your trigger. If you are, it is decisive.

What should I do next?

Confirm which holdings are grandfathered, and identify anything that warrants review on its own merits. The Ramsey Portfolio Stress Tester is the fastest way to see how a grandfathered portfolio performs under current tax, rate, and credit conditions.

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