The Federal Budget is due on 12 May 2026 and property investors are watching closely. The government is believed to be considering changes to negative gearing, capital gains tax and trust taxation, although the final rules will not be known until the Budget papers and legislation are released. ABC reporting suggests any negative gearing changes may be grandfathered, but the structure remains uncertain, including whether future limits could apply by property number, new builds or broader investment categories.
Five Things Smart Investors Should Review Before Making Any Major Move
1. Review Your Contract Timing
Reports suggest any changes to negative gearing may not affect existing arrangements, but nothing should be assumed until legislation is confirmed. ABC reporting indicates negative gearing reforms may be grandfathered, while CGT changes could involve more complicated transition rules.
When purchasing an investment property, check:
- whether finance approval is unconditional;
- whether the settlement date is realistic;
- whether special conditions create delay risks;
- whether you are being asked to waive cooling-off rights; and
- whether contracts have already been exchanged.
In NSW, settlement generally occurs around six weeks after exchange. NSW Government guidance recommends obtaining the contract early so a solicitor or conveyancer can review it before signing.
2. Review the Ownership Structure
Before buying, selling or transferring property, review how the asset is held:
- personally;
- jointly;
- through a company;
- within a trust; or
- through a self-managed super fund.
Current Budget discussions include possible changes to trust taxation, negative gearing and CGT treatment. Commonwealth Bank’s Budget preview also flagged speculation around grandfathering arrangements, possible CGT discount changes and the removal of negative gearing for some future investments, although none of this has been confirmed.
3. Stress-Test the Debt
On 5 May 2026, the RBA increased the cash rate to 4.35%, just one week before the Federal Budget. For investors, the real question is not simply whether repayments are manageable today, but whether the property still works financially if rates, vacancies, insurance premiums, strata levies or maintenance costs increase.
Before exchange, review:
- the expiry date of loan approval;
- lender conditions;
- projected repayments at higher interest rates;
- assumptions about rental income;
- available cash buffers; and
- whether the investment relies heavily on negative gearing benefits.
4. Review Depreciation and Financial Records
Depreciation can form a significant part of an investor’s tax position, particularly for newer properties or assets containing eligible plant, equipment and capital works. The ATO confirms that rental property owners may claim deductions for allowable rental expenses and depreciating assets used to generate income.
A practical step for investors is to ensure their depreciation schedule is current. If renovations have been completed, appliances replaced, or a newer investment property purchased, investors should consider speaking with their accountant and a qualified quantity surveyor.
Good records matter. Poor records can become costly in a changing tax environment.
5. Review Off-the-Plan and Construction Contracts
Budget changes are not the only risk. Construction costs, material shortages, sunset dates and developer clauses can also significantly affect investors. NSW Government guidance notes that sunset clauses are commonly included in off-the-plan contracts, and developers may require buyer consent or NSW Supreme Court approval before rescinding under those clauses.
Before signing an off-the-plan or construction-related contract, review:
- sunset dates;
- extension rights;
- escalation clauses;
- variation rights for finishes or specifications;
- finance risks linked to delayed completion;
- deposit protection provisions; and
- whether the contract gives the developer excessive flexibility.
The issue is not simply whether a clause exists. The real question is who carries the risk if circumstances change.
Flash Conveyancing Advice
Don’t wait until Budget night to discover your portfolio is exposed. Now is the time to review contracts, titles, finance timing, ownership structures and tax positions. Budget headlines may shift quickly, but careful legal preparation remains one of the best protections against rushed decisions and expensive mistakes.
Julian & Renee at Flash Conveyancing assist property buyers and investors across NSW with practical, detail-focused support through every stage of the transaction. From contract reviews and title checks to settlement management and risk identification, they help clients navigate changing market conditions across Blacktown, Hawkesbury, The Hills, Hornsby, Parramatta and surrounding growth areas with greater confidence and clarity.