The 2026–27 Federal Budget has not made buying a home “easy”, but it has changed the map for buyers. The Government says its housing tax reforms will help more Australians into home ownership by limiting negative gearing to new builds from 1 July 2027, while leaving existing arrangements unchanged for properties held before Budget night. Investors who purchase established homes after Budget night will still be able to carry losses forward, but they will not be able to offset those losses against wage income immediately.
That is a very different tone from the 2016–17 Budget period. At the time, the Turnbull Government said it would not change negative gearing or capital gains tax policy, arguing that land supply and zoning were better answers to housing affordability. The message in 2026 is almost the opposite: cool investor demand for established homes, encourage new supply and give first home buyers a better shot at the front door.
For buyers, the most significant change is as much psychological as it is financial. In some auction rooms, fewer investors may feel the need to pay a premium for an established property because the tax benefits are weaker. According to CBA, the Budget changes to negative gearing and CGT may mean house prices are about 3 per cent lower than they otherwise would have been, with the impact likely to be strongest in investor-heavy segments such as apartments, townhouses and lower-priced established dwellings.
| Buyer opportunity | What changed | What to watch |
| Established homes | Less investor heat may reduce some tax-driven competition | Do not skip building, pest, strata or contract checks |
| New builds | Tax settings still favour investors in new supply, which may support construction | Review sunset clauses, defects, variations and developer risk |
| Growth corridors | Budget infrastructure funding may help unlock more homes | Check services, roads, timing and council requirements |
| First home support | Lower-deposit pathways remain available for eligible buyers | Confirm eligibility, lender rules, price caps and stamp duty position |
| Vendor sales campaigns | Sellers may focus more on owner-occupiers and first home buyers | Buyers should negotiate terms, not just price |
The infrastructure part matters too. The Budget establishes a new $2 billion Local Infrastructure Fund to assist local governments and state utilities in providing the practical things new communities need: water, power, sewerage and roads. The Government says the funding will support up to 65,000 homes over a decade. For buyers looking at growth areas, this is not just “big government spending”. It can be the difference between a new estate that actually works and one waiting for basic services.
Deposit support is also part of the buyer’s toolkit. Housing Australia says the enhanced Australian Government 5% Deposit Scheme allows eligible first home buyers to purchase with a deposit of just 5 per cent, while single parents or legal guardians may be able to purchase with as little as 2 per cent without paying Lenders Mortgage Insurance. The scheme also has unlimited places, higher property price caps and no income caps, although buyers still need to check the rules with their lender before relying on it.
That is where sales strategy comes in. Vendors of established homes may now target their campaigns more directly at families, first home buyers and owner-occupiers, instead of investors chasing tax settings. That can be good news for buyers, but it does not mean every listing is a bargain. Some investor-owned properties coming to market may have deferred maintenance, tired inclusions, tricky tenancy issues or rushed contract preparation. It still pays to be a careful buyer, not a sleepy one, even in a lower-pressure market.
Julian and Renee of Flash Conveyancing agree this is a time for buyers to be brave, but not blind. The right property still needs the right legal review. Before the champagne moment, you need to check the contract terms, inclusions, settlement dates, cooling-off rights, easements, zoning, strata records, special conditions and first home buyer concessions.
Flash Conveyancing Advice:
Do not let a “buyer-friendly” headline make you sign too quickly. Make sure your finance, grant eligibility and contract review are ready before you bid, negotiate or exchange. A good purchase is not just about winning the property; it is about settling safely.
Flash Conveyancing, led by Julian & Renee, provides NSW buyers with clear contract reviews, practical advice and a personalised approach from inspection excitement to settlement confidence. If you are buying in Blacktown, The Hills, Parramatta, Hornsby, Hawkesbury, the Blue Mountains or suburbs including Schofields, Marsden Park, The Ponds, Kellyville, Castle Hill, Bella Vista, Rouse Hill, Box Hill, Riverstone, Quakers Hill, Seven Hills, Norwest, Windsor or Winston Hills, Flash Conveyancing keeps the legal pathway clear while you focus on getting the keys.