The recent Federal Budget has introduced significant changes to negative gearing and capital gains tax arrangements, sparking plenty of conversation across the property investment landscape. While any policy change naturally creates uncertainty, it’s important for investors to remember that property has always been a long-term game. Markets evolve, governments change the rules, and successful investors adapt accordingly.
At Equidel, we believe these reforms reinforce the importance of strategy, asset selection, and making informed decisions based on long-term fundamentals rather than short-term tax benefits alone.
Here are some of the biggest questions investors are asking right now.
Should I still invest in property after these changes?
Absolutely, but strategy matters more than ever.
The reality is that good investing has never been purely about chasing tax deductions. Strong property investment decisions are built around:
- long-term planning
- growth fundamentals
- identifying areas with strong future demand
- quality asset selection
- cash flow
- opportunities that genuinely add value
We’re likely to see investors place a greater focus on new builds, smarter borrowing structures, and properties that perform well on their own merits.
The most successful property investors are rarely the ones who panic during policy changes. They’re the ones who adapt.
Does this mean negative gearing is gone completely?
No. There’s been a lot of confusion around the announcements, but negative gearing has not disappeared altogether.
Under the proposed reforms:
- Existing investment properties owned before the announcement are grandfathered under the current rules.
- New builds will continue to have access to negative gearing moving forward.
- Restrictions are primarily aimed at established properties purchased after the relevant implementation dates.
This means the conversation is no longer simply “Should I invest in property?”
It’s increasingly becoming “What type of property should I invest in?”
Let’s look at a practical example
If you purchase an established investment property after 12 May 2026 and the property operates at a loss, you will no longer be able to claim that loss against your personal taxable income.
For example:
- If your property makes a $5,000 loss in the 2027/28 financial year, that loss cannot be used to reduce your salary or wages for that year.
- However, the loss is not lost altogether. It can be carried forward and applied against future residential property income or capital gains.
So, if that same property generates a $5,000 profit in a future financial year, the previous carried-forward loss may then be used to offset that income.
Importantly, new builds remain exempt from these changes and can still access negative gearing under the current arrangements.
With current interest rates and property values, many single-income investment properties are negatively geared by necessity rather than design. That’s why quality property research, cash flow planning, and strategic asset selection are becoming more important than ever.
How can I avoid being negatively geared in the first place?
This is where smart property strategy becomes incredibly important.
Many investors are now reconsidering whether relying on tax deductions should ever have been the primary goal.
Instead, we expect to see greater focus on:
- stronger rental yields
- positive or neutral cash flow
- lower vacancy risk
- quality growth corridors
- dual-income opportunities
- newer, lower-maintenance properties
- better borrowing structures
A strong investment should ideally support itself as much as possible.
Negative gearing may still play a role in some investment strategies, but increasingly, investors will want properties that stack up even without relying heavily on tax benefits.
Will these changes affect property prices or rents?
Potentially, but probably not in the dramatic way many headlines suggest.
Property markets are influenced by a wide range of factors, including:
- population growth
- housing supply shortages
- infrastructure investment
- interest rates
- lending conditions
- employment trends
Tax policy is only one piece of the puzzle.
In fact, some areas or property types may actually strengthen if investor supply tightens or demand shifts toward certain asset classes.
Property markets move in cycles, and opportunities still exist for informed investors who understand where the market is heading rather than reacting emotionally to short-term news.
What types of properties still make sense now?
We believe quality property will always outperform over the long term.
Moving forward, we expect to see increased focus on:
- new builds
- properties that genuinely add to housing supply
- high-demand rental locations
- low-maintenance investment stock
- properties with strong long-term growth fundamentals
Importantly, the proposed reforms specifically preserve concessions for qualifying new builds that add to housing supply.
The landscape may be changing, but opportunities still exist for property investors who understand the new rules and position themselves accordingly.
Should I buy before 1 July 2027?
For some investors, timing may become an important consideration.
However, rushing into a property purchase purely because of tax policy changes is rarely the right approach. The better question is whether the property itself aligns with your long-term goals, financial position, and investment strategy.
What these reforms do highlight is the importance of getting quality advice and understanding your options early, particularly if you’re considering purchasing an established investment property.
The investors who will perform best over the coming years are likely to be those who stay informed, remain strategic, and focus on quality opportunities rather than reacting to fear or headlines alone.
If you’d like to discuss how these reforms may impact your current portfolio, or whether property investment still aligns with your long-term goals, the Equidel team is here to help.
