The 2026–27 Federal Budget has made property investing a much more considered game. From 1 July 2027, the Government will restrict negative gearing for residential property to new builds. Losses on established residential properties purchased from 7:30 pm AEST on 12 May 2026 will be quarantined against income from residential property and future residential gains. Properties already owned at the time of the announcement are protected, as are contracts already entered into but not yet settled.
That is a big shift from the tone of the 2016–17 Budget, when the Government said it would not remove or limit negative gearing, and also said it would not increase capital gains tax on investments. The 2026 policy signal is different. The Government wants investment to flow into new housing supply, not just through existing homes.
| Strategy | Who it may suit | What to check before moving |
| Pivot to new builds | Investors wanting to keep access to negative gearing | Developer risk, sunset clauses, build quality, strata details and settlement timing |
| Hold protected assets | Existing investors with properties held before Budget night | Loan costs, rent, land tax, repairs and long-term yield |
| Sell before strategy drifts | Vendors with strong gains or changing cash-flow needs | CGT position, sale timing, market demand and contract conditions |
| Restructure carefully | Families, trusts or companies reviewing ownership | Duty, tax, lender consent, title details and legal advice |
| Buy commercially | Investors exploring non-residential assets | Lease terms, GST, zoning, outgoings and tenant risk |
For investors, the “pivot” is clear but not easy. New apartments, townhouses, and house-and-land packages could now look more appealing because new builds maintain access to negative gearing, and investors in new residential property can choose the 50 per cent CGT discount or the new indexed method when they sell. However, new does not automatically mean safe. Off-the-plan contracts should be carefully scrutinised, particularly concerning sunset dates, defects, variations, strata budgets and developer performance.
The Budget could offer a different kind of opportunity for vendors. If investors sell fewer protected assets, established homes in good locations could become more tightly held. This could benefit sellers who present well to owner-occupiers, first home buyers and families looking for homes in established suburbs close to schools, transport and shops. The selling strategy now needs to focus on lifestyle, certainty and settlement confidence, not just rental yield.
The CGT clock also needs attention. From 1 July 2027, the 50 per cent CGT discount will be replaced for many assets with cost-base indexation and a minimum 30 per cent tax on real capital gains. However, the new rules only apply to gains accruing from that date. Assets acquired before 1 July 2027 and disposed of after that date will generally be split between the old and new treatment. So, a rushed sale is not always the answer, but a proper valuation and tax plan may be vital.
For Julian and Renee at Flash Conveyancing, this is a contracts-and-records moment. If you are selling, your contract should be clean, complete and attractive to the right buyer. If you are holding, your ownership records, cost-base documents, renovation invoices and loan history should be in order. If you are buying new, the legal detail is more important than the display suite brochure.
Flash Conveyancing Advice
Do not let Budget headlines make the decision for you. Before you pivot, hold or sell, speak with your accountant, broker and conveyancer together. Before you move, check your acquisition date, tax position, contract terms, finance approval and settlement plan.
The smartest property players do not guess when the rules change; they get their paperwork battle-ready. Flash Conveyancing, led by Julian & Renee, supports NSW investors and vendors with contract reviews, sales, purchases, transfers, title checks and settlements throughout Blacktown, Hawkesbury, Blue Mountains, The Hills, Hornsby and Parramatta. From Acacia Gardens, Quakers Hill, Schofields, Marsden Park and The Ponds to Bella Vista, Castle Hill, Kellyville, Rouse Hill, Box Hill, Norwest, Riverstone, Seven Hills, Windsor, Winston Hills and surrounding suburbs, Flash Conveyancing brings clear communication, local knowledge and a personal touch to every property strategy.