Investing
The 2027 negative gearing and CGT changes
Last reviewed November 2025
From 1 July 2027, rental losses on newly-acquired established residential properties are proposed to be quarantined against future rental or capital gains, rather than deductible against salary income.
What's actually changing
Losses on new purchases of established residential are quarantined. New builds and grandfathered properties held before that date are unaffected.
The CGT discount
A reduction to the 50% CGT discount for new residential purchases is also proposed, though final legislation is not yet passed.
How to think about it
The changes make the cash flow of established residential investing harder from 2027 on, but do not affect people already holding property. Use the negative gearing calculator to see both scenarios.
Related tool
Model both scenarios
→
General information only. This tool provides general information and does not consider your personal circumstances. It is not financial, tax, legal or credit advice. Rates, thresholds and rules change. Verify current figures with the ATO, your state revenue office or a licensed adviser before acting.