Updated for the Tax Reform No. 1 Act 2026

Will your property still be negatively geared after July 2027?

The grandfathering cut-off was 7:30pm AEST on 12 May 2026, and it has already passed. Whether you keep negative gearing is now settled by two things you already know.

Check your property

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The date you signed, not settlement. A contract entered before the cut-off counts even if it settled later.
Newly constructed dwellings are exempt from the change regardless of when you bought.
Rent received less interest, rates, insurance, management and depreciation. Optional.
Used only to show what the deduction is currently worth against your salary.

What actually changes

Negative gearing is not being abolished. The losses are being ring-fenced, which is a different thing and it matters for the arithmetic.

Today

A rental loss on any investment property is deductible against your other income, including your salary. If the loss exceeds your income it carries forward.

From 1 July 2027, for affected properties

The same loss is deductible only against rental income or capital gains from residential property. It no longer reduces the tax on your salary.

Unused losses still carry forward indefinitely and offset residential property income in later years. Nothing is forfeited, it is deferred.

The capital gains side

The same Act replaces the 50% CGT discount with cost base indexation and a 30% minimum tax, from the same date. This part cannot be calculated precisely yet, and it would be dishonest to pretend otherwise.

What is settled

From 1 July 2027 the 50% discount ends for individuals, trusts and partnerships. Gains that accrued before that date keep the discount, so an asset held across the date is split.

Complying super funds keep the one third discount. Companies never had one. The main residence exemption, the four small business concessions and the 60% affordable housing discount are all retained.

What is not

Tranche 1 is framework legislation. It does not yet specify which inflation series is used, how often it is applied, or how a gain straddling 1 July 2027 is apportioned between the two regimes.

Those three details determine the answer, so any calculator giving you a precise indexed figure today is guessing at them.

Questions worth asking your accountant

These are the ones the legislation leaves genuinely open, rather than the ones a calculator can settle.

Still to be confirmed in tranche 2

  • How a gain accruing across 1 July 2027 is split between the discount and indexation — by valuation on the day, or apportioned over the holding period.
  • Which CPI series applies to the indexed cost base, and whether the factor is quarterly as it was before 1999.
  • Whether the 30% minimum applies before or after franking credits and the foreign income tax offset.
  • The precise boundary of an eligible new build, which governs both the negative gearing exemption and the choice of CGT method.
  • Treatment of attribution managed investment trusts, tax consolidation and residency changes, all flagged by the Treasurer for later legislation.

Sources

Every date and rule on this page comes from a primary source.

General information only. This calculator applies the grandfathering rule in the Treasury Laws Amendment (Tax Reform No. 1) Act 2026 to dates you enter. It is not tax advice and it does not consider your circumstances. PortWorth is not a registered tax agent and does not hold an Australian Financial Services Licence. Your registered tax agent determines your actual obligations. Figures shown are estimates based on what you enter.

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