I'll be honest with you — last night's budget kept me up later than planned. Not because it's a catastrophe for property investors, but because there's a lot of nuance that I think will get lost in the headlines. So I wanted to write something for our landlords, in plain English, before the noise gets too loud.
Treasurer Jim Chalmers confirmed two major changes: a significant tightening of negative gearing and a restructure of capital gains tax (CGT) for investment properties. Both take effect from 1 July 2027 — so there is time to plan. But the right time to start is now, not in twelve months.
First — the good news for existing landlords
If you already own an investment property, or had a contract signed before 7:30PM AEST on 12 May 2026 — including contracts not yet settled — you are fully grandfathered under the existing negative gearing rules, for as long as you hold that property.
"If you were in the market before Budget night — including if you have a contract signed but not yet settled — your negative gearing is completely protected. There is no cap on the number of properties this covers."
I want to be clear about this because I've already had landlords calling this morning in a panic. If you own investment properties today, your ability to negatively gear those properties continues unchanged. What you have now, you keep — for as long as you hold.
Negative gearing fully preserved on all properties owned or under contract before 7:30PM AEST, 12 May 2026. No limit on portfolio size.
Unsettled contracts are included. If you exchanged before Budget night and haven't settled yet, you are protected under the existing rules.
These protections remain in place for as long as you hold the property. Selling and repurchasing an established property resets the clock.
"As a current landlord the changes appear to have no immediate impact on you and may in fact put you in an advantageous position due to the grandfathering of the previous tax laws."
— Damian Hackett, CEO, Place Estate AgentsWhat's actually changing — and when
From 1 July 2027, negative gearing on established residential properties will only continue for properties purchased before Budget night. For any established property purchased after 7:30PM on 12 May 2026, losses can no longer be offset against wages or other personal income. Losses can still be deducted against rental income from other properties, or carried forward to offset future capital gains — but the wage-offsetting benefit ends. New builds remain fully exempt.
On the capital gains side, the familiar 50% CGT discount will be replaced with an inflation-adjusted indexation model, with a minimum 30% tax on any remaining gain. The transitional rule is important: gains accrued before 1 July 2027 still attract the old 50% discount. Only gains arising after that date follow the new rules — even on existing properties you already hold.
| What | Existing properties (pre-Budget night) | New established purchases (post-Budget night) | New builds |
|---|---|---|---|
| Negative gearing vs wages | ✓ Fully protected | Ends from 1 Jul 2027 | ✓ Retained |
| Losses vs rental income | ✓ Continues | ✓ Still allowed | ✓ Continues |
| Unused losses carry-forward | ✓ As before | ✓ Allowed | ✓ Allowed |
| CGT 50% discount | On gains before 1 Jul 2027 | Replaced by indexation | ✓ Investor chooses old or new |
| Minimum 30% CGT on gains | Gains after 1 Jul 2027 only | Applies in full | Investor may choose indexation |
| Family trust distributions | Minimum 30% CGT on discretionary trust distributions — from 1 July 2028. Some exceptions apply. | ||
The CGT detail most landlords will miss
Your negative gearing on existing properties is protected — but the capital gains rules will shift on any growth that accrues after July 2027, even on properties you've held for years. This is where a property appraisal before July 2027 becomes genuinely valuable.
Establishing the documented value of your property at or before 1 July 2027 gives you a clear baseline. The portion of gain up to that point is covered by the old 50% CGT discount. Only growth after that date follows the new rules. That distinction can make a meaningful difference to your tax position when you eventually sell.
We can arrange a property appraisal for you before July 2027 — at no cost.
Place Sunnybank is a full-service agency. In addition to property management and sales, our team provides thorough, well-documented property appraisals across the Brisbane south market. As part of our commitment to our landlords, we're offering complimentary appraisals to help you establish a clear market value baseline before the CGT transitional date of 1 July 2027.
This is one of the most practical steps you can take right now — and it costs you nothing. Simply reach out and we'll arrange it around a time that suits you.
Please note: for formal ATO record-keeping purposes, a report from a registered property valuer carries the most legal weight. Our complimentary appraisal is an excellent starting point and can help you determine whether a formal valuation is warranted. We're happy to guide you through that process if needed.
Request your complimentary appraisal →New builds: a genuinely positive story
One thing that's genuinely positive in this budget is that new construction is well protected. Negative gearing is fully retained on new builds, and investors who purchase new properties can choose between the old 50% CGT discount or the new indexation arrangement when they sell — whichever is more favourable.
The government also committed $2 billion to a Local Infrastructure Fund supporting approximately 65,000 new homes over the next decade, and extended the ban on foreign buyers purchasing established dwellings to June 2029. Both measures support the local Brisbane property market.
What this means for you — by situation
Not every landlord is in the same position. Here's a quick breakdown by investor type.
You are in the strongest position. Your negative gearing is fully grandfathered, your existing CGT treatment is preserved until July 2027, and reduced future competition from new investors may work in your favour.
✦ Grandfathered & protected
CGT changes are expected to further encourage holding assets long term. If you're a patient investor, the policy actually aligns with your strategy — and Brisbane's fundamentals reward patience.
✦ Policy works in your favourThe family home remains fully exempt from Capital Gains Tax. These changes apply to investment properties only. Your principal place of residence is completely unaffected.
✦ No change for your homeThe opportunity now sits squarely in new builds — full negative gearing, choice of CGT method at sale, and government infrastructure backing make new construction a compelling entry point.
✦ New builds are your playBrisbane and South East Queensland — the fundamentals haven't changed
While the policy environment is shifting, the underlying case for Brisbane property remains solid. Treasury's own modelling points to slower price growth rather than a significant market correction — property markets continue to be driven by supply, demand, interest rates, and population growth.
Brisbane and South East Queensland in particular remain strongly positioned. As Place Estate Agents CEO Damian Hackett noted, "the changes will reshape investor behaviour and redirect demand, rather than weaken long-term confidence in property."
What I'd recommend doing right now
I'm not a financial adviser, and the specifics depend on your personal situation. But as your property manager, here's the practical advice I'm sharing with our landlords:
My honest take
This is a significant policy shift, and I won't pretend otherwise. The government has made a clear decision to change how investment property is taxed going forward, and that will reshape parts of the market over time.
But for existing investors — which is most of you reading this — the grandfathering protections are comprehensive. What you have today is protected. And the investment case for well-located Brisbane property, managed well, hasn't changed.
I've been in property management since 2016 and have watched plenty of market and policy shifts come and go. What consistently matters more than any single policy change is whether your property is looked after, tenanted well, and positioned correctly for the long term. That's what we focus on every day — and that doesn't change.
If you have questions — about this budget, your specific properties, or anything else — please reach out. That's what we're here for.
"We've been managing Brisbane investment properties since 2016 and our job has always been to help landlords make sense of what's happening — in a way that actually helps you make good decisions. If you'd like to talk through any of this, or book your complimentary property appraisal before July 2027, my door is always open."
Important: This article is general in nature and does not constitute financial, legal, or tax advice. The budget measures referenced are subject to parliamentary approval and have not yet been legislated. Please speak with a qualified accountant or financial adviser before making decisions about your investment portfolio. Place Sunnybank does not provide financial advice. Property appraisals provided by Place Sunnybank are market assessments; for formal ATO purposes, a report from a registered property valuer is recommended.
