The biggest budget changes relate to proposed updates to negative gearing and capital gains tax.
While these changes could influence future investment decisions, the good news is that nothing changes immediately, and most proposed changes are not set to begin until July 1, 2027. If you already own an investment property, or purchased one before May 12 this year, existing negative gearing rules will be grandfathered so that existing investors are protected.
The biggest impact will be for people planning to buy an investment property in the future. Under the proposed changes, negative gearing will only apply to new build properties from July 2027, which could make newly built homes more attractive for investors.
There are also proposed changes to capital gains tax (CGT). The current 50 per cent CGT discount may be removed but, importantly, this would only apply to future growth from July 1, 2027.
The good news? Self-managed super funds are excluded from negative gearing and CGT changes. We’re already fielding calls from property investors. Lenders seem to have a solid appetite for this sector so it could be an opportunity for further exploration.
Matt Punter, Director, Punters Finance and TSC Mortgage Brokers, puntersfinance.com.au and thesavingscentre.com.au
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