2026 Federal Budget - Property Investor Hub
How does the new reform treat newly built investment properties?
Your complete guide to the new-build exemption - why newly built homes retain negative
gearing, how the rules differ from established property, and what the after-tax difference could mean for investors.
Understanding the New Build Exemption.
Why do new builds keep negative gearing?
The quarantine that begins on 1 July 2027 targets established residential property acquired after the 12 May 2026 cutoff. New builds sit outside it. The policy intent is to keep negative gearing available where it adds housing supply, rather than where it competes for existing stock. For a new build, the pre-reform negative gearing treatment continues.
What is the difference in treatment between new and established?
For an established property acquired after the cutoff, from 1 July 2027 rental losses can only offset rental income or capital gains, not salary or other income. For a new build, rental losses retain their existing use against other income. That difference changes the after-tax cash flow of holding one versus the other.
Does this change the after-tax case for buying new?
It can. Where two properties have similar rental shortfalls, the new build retains the loss offset against other income while the post-cutoff established property does not from 1 July 2027. That widens the after-tax gap in the new build’s favour, though price, yield, growth prospects, and quality still drive the underlying decision.
How does this interact with the August deadlines?
The new-build treatment is about the 1 July 2027 negative gearing change. It is separate from the 9 August 2026 bare trust deadline and the 10 August 2026 SMSF LRBA change, which concern structures being put in place now. A new-build acquisition inside an SMSF or a bare trust still has to meet those near-term deadlines.
What should I do next?
Compare a planned new-build acquisition against an established alternative on an after-tax basis under the new rules, not the old ones. The Ramsey Portfolio Stress Tester runs the comparison against five scenarios and returns a Survival Score for a specific portfolio.
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Investor Hub Contributors
The Ramsey Property Investor Hub brings together economic research, property market intelligence and practical
portfolio experience to help investors understand how changes to legislation, taxation and the broader property environment may affect
their investment decisions.
Dr Prabath Morawakage, PhD
Head of Property Economics and Intelligence, Ramsey Property Wealth
PhD-qualified property economist with experience in property economics, real estate finance, econometrics
and academic research. Prabath brings the evidence and economic lens to help investors understand how policy and market changes may
affect property investment outcomes.
Ewan Ramsey
Investor, Founder & CEO, Ramsey Property Wealth
A highly- qualified, experienced property investor and portfolio wealth strategist with 18+ years across
property finance, pirvtae lending, property development and investment strategy. Ewan brings the practical investor lens,
translating market, tax and lending changes into what they may mean for building and managing a compounding property portfolio.
Professional advice. Intelligent decisions.
Long-term wealth.
A complimentary 30-minute Discovery Session with a senior adviser. We assess your current position, clarify what the 2026 changes mean for your portfolio, and determine whether we are the right long-term partner to help build, protect and optimise your property wealth.
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