If you’ve been following the news lately, you’ve probably heard a lot of discussion around proposed changes to negative gearing and capital gains tax (CGT) in Australia.
And if you’re like most people…you’re probably still wondering:
“What does this actually mean for me?”
At Mynt Financial, we’re already receiving questions from:
- first home buyers
- investors
- homeowners
- landlords
- and people thinking about upgrading or refinancing
So let’s break it down simply.
What Is Negative Gearing?
Right now, if an investment property costs more to hold than it earns in rent, investors can often claim that loss against their taxable income.
This is called negative gearing.
The proposed changes would mean that from July 2027:
- negative gearing may only apply to newly built properties
- established properties purchased after May 2026 may no longer receive the same tax benefits
Existing investment properties are expected to be protected under “grandfathering” rules.
What About Capital Gains Tax (CGT)?
Currently, investors who hold an asset for more than 12 months generally receive a 50% discount on capital gains tax when they sell.
Under the proposed changes:
- the 50% discount would be removed
- gains would instead be adjusted for inflation
- investors may pay more tax when selling assets in future
Again, transitional rules are expected to apply.
What Could This Mean For The Property Market?
We May See More Demand For New Builds
Because new properties may still qualify for negative gearing benefits, investors could shift their focus toward construction and off-the-plan purchases.
Established Homes May Become More Accessible For Buyers
If fewer investors compete for existing homes, some first home buyers may find less competition in certain areas.
More People Seeking Advice Earlier
Whenever major policy changes are discussed, people naturally want to review their plans, structures and borrowing strategies sooner rather than later.
The Biggest Mistake? Reacting Emotionally
One thing we’re telling clients right now is:
don’t make rushed decisions based on headlines alone.
These changes are still proposed.
There are timelines involved.
And every person’s situation is different.
For some people, these changes may have little impact.
For others, they may create new opportunities.
The Bottom Line
Markets change.
Policies change.
Interest rates change.
But one thing stays consistent:
the people who usually make the best financial decisions are the people who seek advice early and plan ahead.
If you’d like help understanding what these proposed changes could mean for your situation, reach out to the team at Mynt Financial for a chat.
Disclaimer: The information in this article is general in nature and is based on proposed government policy changes at the time of writing. It does not take into account your personal objectives, financial situation or needs and should not be considered financial or tax advice. Proposed legislation and government policies may change. We recommend seeking independent financial, legal and taxation advice before making any financial or property decisions.
