Negative Gearing Is Ending
For Established Property.
From 1 July 2027, rental losses on established homes can no longer offset your wages. The 50% CGT discount is gone. Trust rules are tightening. Every investment decision now depends on when you bought and what you bought.
Your agent doesn't know your tax position. Your accountant doesn't know the property market. Your broker doesn't know either. We know all three — and the rules just changed on all of them.
What Changed
Four simultaneous policy shifts that compound on each other. Understanding them individually isn't enough — you need to see how they interact for your situation.
Negative Gearing Quarantined
From 1 July 2027, established residential properties acquired after 7:30 pm AEST 12 May 2026 can no longer offset rental losses against wages. Losses are quarantined — carried forward against future rental income or capital gains. New builds that genuinely add housing supply retain full offset.
Grandfathering is NOT transferable — if you sell a protected property, the buyer enters the new regime.
CGT Discount → Indexation
The 50% CGT discount is replaced from 1 July 2027 by cost-base CPI indexation plus a 30% minimum tax rate on real capital gains. Assets held before that date keep the 50% discount on gains accrued up to 30 June 2027.
New-build investors can elect EITHER the 50% discount or the new indexation — whichever produces the better outcome.
Trust Tax Reform
From 1 July 2028, a 30% minimum tax rate applies to taxable income retained in discretionary trusts, reducing the benefit of income splitting. SMSFs and widely held trusts are exempt from the negative gearing quarantining.
How you hold the property now determines whether you're affected — entity restructures should be reviewed before the commencement date.
Interest Rate Environment
Rate movements compound with the reform: higher interest → larger rental losses → bigger quarantined amounts that no longer produce an immediate refund for established property investors.
The real cash cost of holding an investment property has structurally changed for post-Budget established purchases.
Where does the reform leave your property?
Enter your numbers and we will determine which regime your property falls under, then model it both ways: grandfathered against the post-reform treatment. Same property, two very different outcomes.
Your property
Grandfathering runs off the contract date, not settlement.
Two regimes, one property
Enter your details and we will show you which side of 7:30 pm, 12 May 2026 your property sits on, and what that is worth in dollars.
Why Integrated Advice Matters Now
When four policies change simultaneously, fragmented advice is dangerous. Each professional sees one piece — only integrated advice sees the whole picture.
Your Agent
Knows the rate rise hit buyer sentiment. Doesn't know whether your property is grandfathered or quarantined — or that the answer changes the moment you sell.
Your Accountant
Knows the CGT indexation replaced the 50% discount. Can't tell you which suburb still yields a positive after-tax return once losses are quarantined.
Your Broker
Knows your borrowing power. Doesn't know the 30% trust minimum rate arriving July 2028 that could change your entity's entire holding strategy.
The Local Knowledge Difference
Three practices. One ownership. One client file. Your CPA, mortgage broker, and real estate agent share the same understanding of your position — so every decision accounts for all four changes at once.
Deep-Dive Analysis
CPA-grade analysis tailored for every audience — from first-home buyers to SMSF trustees. Each piece written by Graham Chee from 26 years across all three disciplines.
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Off-the-Plan in a Post-Reform World: Why Structure Matters More Than Ever
Off-the-Plan in a Post-Reform World: Why Structure Matters More Than Ever By Graham Chee, CPA, Licensed Real Estate Agent, Mortgage Broker apartments.sydney / Local Knowledge Pty Ltd The Reform Landscape: Four Major Shifts, One Compounded Impact Australia’s property investment landscape has entered
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Rate Rise, CGT, Negative Gearing & Trust Rules: What It Actually Means For Your Next Property Decision
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The Rules Changed On All Three Disciplines At Once.
Book a confidential Policy Reform Review. We'll sit with you across all three disciplines — accounting, lending, and property — and map out what these changes mean for your specific position.
No obligation. No sales pitch. Just clarity from someone who understands your complete financial picture.