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Wednesday 28 October 2026 19:58:04 GMT
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The 2026 Federal Budget was released Tuesday night.  Here's how the negative gearing changes impact you. The big headline: negative gearing is being axed for established properties.  Changes come into effect from 1 July 2027 if passed in parliament. Any contracts signed after May 12, 2026 (budget night) on existing properties won't be eligible for negative gearing tax benefits.  It'll only be allowed for new builds - the government is trying to incentivise new housing supply. Properties purchased before budget night are grandfathered.  You can still claim negative gearing until you sell. What is negative gearing?  If your investment property earns $20k in rent but costs $30k after mortgage, rates, and fees, that $10k loss can be written off against your taxable income.  If you're in the top tax bracket (47%), you get a $4,700 refund to offset those losses. This has been a huge incentive for property investment.  You might only lose $5k after tax to hold a property appreciating $50k/year. The government is trying to reduce investor demand and help first home buyers.  But there will be unintended consequences. Remove tax breaks and investors will make up losses by increasing rents.  Less investor demand means less rental supply, which drives rents up. History backs this up.  Negative gearing was scrapped in Australia in 1985.  Rents skyrocketed for two years. It was reinstated in 1987.  New Zealand tried removing it in 2021.  Same result. Reinstated in 2023. Rents are going higher because of this, squeezing the middle class and the people the government is trying to help. #negativegearing #australianproperty #federalbudget #propertyinvesting #rentalcrisis
The 2026 Federal Budget was released Tuesday night. Here's how the negative gearing changes impact you. The big headline: negative gearing is being axed for established properties. Changes come into effect from 1 July 2027 if passed in parliament. Any contracts signed after May 12, 2026 (budget night) on existing properties won't be eligible for negative gearing tax benefits. It'll only be allowed for new builds - the government is trying to incentivise new housing supply. Properties purchased before budget night are grandfathered. You can still claim negative gearing until you sell. What is negative gearing? If your investment property earns $20k in rent but costs $30k after mortgage, rates, and fees, that $10k loss can be written off against your taxable income. If you're in the top tax bracket (47%), you get a $4,700 refund to offset those losses. This has been a huge incentive for property investment. You might only lose $5k after tax to hold a property appreciating $50k/year. The government is trying to reduce investor demand and help first home buyers. But there will be unintended consequences. Remove tax breaks and investors will make up losses by increasing rents. Less investor demand means less rental supply, which drives rents up. History backs this up. Negative gearing was scrapped in Australia in 1985. Rents skyrocketed for two years. It was reinstated in 1987. New Zealand tried removing it in 2021. Same result. Reinstated in 2023. Rents are going higher because of this, squeezing the middle class and the people the government is trying to help. #negativegearing #australianproperty #federalbudget #propertyinvesting #rentalcrisis

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