Negative gearing and CGT changes from July 2027
Understand what changes for your investment property from July 2027, whether you are grandfathered, and what to decide now.
Free guideWhy it matters.
Many property investors rely on negative gearing: the rental loss reduces tax on their salary, which helps cover the loan while the property grows in value. When they sell, the 50% CGT discount roughly halves the taxable gain.
Both change from 1 July 2027, and the reforms are now law. Excess deductions on residential rental property will generally be quarantined, so they can't reduce salary or other income. For established investment property, the 50% discount is replaced by indexation for gains made after the transition, and a 30% minimum tax can apply to those gains.
Existing properties keep a lot of protection, but the grandfathering deadline for negative gearing was 7:30 pm AEST on 12 May 2026, not July 2027. Buying now won't secure it, and a rushed sale can cost more than it saves.
What the guide covers.
After reading this guide, you'll know how the July 2027 changes affect each property you own and what to prepare now, without rushing to buy or sell.
- How to tell whether each property is grandfathered, a new build or caught by the new loss rules
- How quarantined rental losses work, and where they can still be used later
- Why the 30 June 2027 valuation matters and how the CGT calculation is split
- How the 30% minimum tax on capital gains works, and why it's a top-up rather than a flat rate
- How trusts, companies, SMSFs, pre-CGT property and new dwellings are treated differently
- A checklist of records, valuations and forecasts to have in place before 1 July 2027
Don't leave it to chance.
Getting the transition wrong is hard to fix later. Without evidence of each property's market value just before 1 July 2027, the post-transition gain is harder to support, and moving a property to a spouse or a trust can lose its grandfathering.
Through our Individual tax return service, we build a property-by-property transition file with you. We check whether each property is grandfathered or a qualifying new dwelling, set up a ledger for quarantined losses from 2027–28, and help you arrange valuation evidence for 30 June 2027. We also rebuild your after-tax cash flow, so you can see what each property costs you without the tax refund, and compare selling with holding before you decide.
This page and the guide are general information only and don't consider your personal circumstances. Speak with us before acting on them.