InvestOrFirstHome
Federal Budget · 12 May 2026

New builds win - the old CGT & negative gearing rules essentially still apply.

The Federal Budget delivered on 12 May 2026 announced changes to capital gains tax and negative gearing from 1 July 2027 - but new-build investors keep the existing 50% CGT discount choice and full negative gearing. InvestOrFirstHome is a marketplace of land for new builds. List more, buy more.

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✓Existing owners: no change✓New builds: keep 50% CGT discount choice✓New builds: full negative gearing✓Effective 1 July 2027
At a glance

What the 12 May 2026 Budget actually changed

Two reforms targeting property investors, both starting 1 July 2027 - and both designed to push investment toward new housing supply.

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Capital Gains Tax (CGT)

The 50% CGT discount will be replaced with an inflation-based discount plus a minimum 30% tax on capital gains, applying only to gains arising after 1 July 2027. Investors in new builds can choose the existing 50% discount or the new arrangements - whichever is better for them.

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Negative gearing

From 1 July 2027, negative gearing will be limited to new builds for properties bought after Budget night (12 May 2026). Existing owners are fully grandfathered. New-build investors keep full negative gearing against wages and other income.

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Existing owners

If you already own an investment property as of 12 May 2026 - nothing changes for you. All existing arrangements continue under the original CGT and negative gearing rules.

Side by side

Established housing vs new builds (after Budget night)

  Established home (post-Budget purchase) New build (post-Budget purchase)
50% CGT discount ❌ Replaced from 1 Jul 2027 ✅ Choice of old 50% discount or new arrangements
Negative gearing vs wages ❌ Not allowed (only against rental income; carry forward losses) ✅ Full negative gearing against wages and other income
Existing owners (held before 12 May 2026) ✅ Fully grandfathered - existing rules continue for both CGT and negative gearing.

Based on Budget night announcements (12 May 2026). Final legislation, transitional rules and ATO guidance may differ.

Why this favours InvestOrFirstHome buyers

A marketplace built for new-build investment

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Individual Lots

Vacant land + a building contract qualifies as a new build. Browse lots →

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Land & House Packages

Turnkey new homes - new builds by definition. Find packages →

For sellers and developers

A strong tailwind for new-build listings

1

List your land or release

Free until end of June 2026. AI-parsed pricelists, real lot & easement maps, branded developer/builder/agent cards.

2

Reach buyers actively seeking new builds

Investors searching for the CGT discount and full negative gearing benefits will increasingly target new-build stock - exactly what InvestOrFirstHome lists.

3

Boost visibility (optional)

Push & email alerts to matched buyers, top listings on home and category pages, and Meta (Facebook & Instagram) ad campaigns.

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FAQs

Quick answers on the Budget changes

I already own an investment property - does anything change for me?
No. All properties held before Budget night (12 May 2026) are fully grandfathered. Existing CGT and negative gearing rules continue to apply.
What counts as a "new build"?
Generally a brand-new home, land & house package, townhome, or vacant land you build a new home on - rather than buying an existing/established dwelling. Final definitions will be confirmed in legislation. Always confirm your specific situation with a registered tax agent.
When do the changes take effect?
1 July 2027. CGT changes apply only to gains arising after that date. Negative gearing changes apply to properties purchased after Budget night (12 May 2026), but only kick in from 1 July 2027.
Can a new-build investor still claim losses against their salary?
Yes - investors who buy new builds keep full negative gearing, including deducting net rental losses against wages and other income.
Where can I read the official details?
See the official Budget 2026-27 Tax Reform page at budget.gov.au. Always confirm your personal tax position with a registered tax agent or accountant.

New-build advantage starts now - list more, buy more.

Browse Australia's biggest range of new estate releases, lots, packages and townhomes - or list your land for free until end of June 2026.

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This page summarises Budget night announcements made on 12 May 2026 and is general information only. It is not personal financial, tax or legal advice. Final legislation, transitional rules and ATO guidance may differ. Always confirm with a registered tax agent or accountant before making investment decisions. Source: budget.gov.au - Tax Reform.