<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Sweeping reforms are coming for two of Australia's most controversial tax structures: </span><a href="https://www.9news.com.au/national/federal-budget-2026-negative-gearing-changes-what-is-it-everything-you-need-to-know/c37e11e6-9cdb-4420-b3fc-fcf908df8d67" rel="" target="" title="negative gearing"><span>negative gearing</span></a><span> and the </span><a href="https://www.9news.com.au/finance/what-is-negative-gearing-capital-gains-tax-investment-property-tax-concessions-australia-explained/79a83105-f4c6-4121-a693-6df0692adba8" rel="" target="_blank" title="capital gains tax (CGT) discount."><span>capital gains tax (CGT) discount.</span></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>As largely expected, the </span><a href="https://www.9news.com.au/national/federal-budget-2026-live-updates-jim-chalmers-latest-politics-news-headline/f09409ce-c24e-4941-91e5-b797305ed61f" rel="" target="_blank" title="2026 Federal Budget"><span>2026 Federal Budget</span></a><span> has delivered a twin tax blow to landlords and property investors in a bid to make it easier for Australians to buy their own homes.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The federal government has spruiked the future benefits of the negative gearing and CGT discount changes as equivalent to reversing about a decade of decline in home ownership in Australia.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/federal-budget-2026-winners-losers-workers-first-home-buyers-property-investors-ndis/55ede4e3-2ea7-4315-93f9-0f08ca98d2b3"><strong><span>WINNERS AND LOSERS: Federal budget 2026</span></strong></a><span></span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/federal-budget-2026-tax-refunds-offered-to-small-business-losses/db4828b2-8887-4873-a35c-738c4dbea424" rel="" target="_blank" title="Tax refunds coming for businesses who report losses"><strong><span>Tax refunds coming for businesses who report losses</span></strong></a><strong></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But, if you're an investor in newly-built homes or among the lucky landlords who bought a rental property before tonight, you have escaped the brunt of the tax pain.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h2><strong><span>Negative gearing scrapped for future investors</span></strong></h2></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/federal-budget-2026-changes-to-negative-gearing-capital-gains-tax-discount-explained/0a2e7bcf-5c7b-42bc-88d1-788c34aa9eb2" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Negative gearing is on Treasurer Jim Chalmers' chopping block this budget, with the government winding back the friendly tax concession handed to property investors who lose more money than they generate on a property.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Until now, any homeowner was able to deduct a net loss from a residential investment property from their overall income and lower their total taxable income, and therefore reducing their yearly tax bill.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>From July 1, 2027, negative gearing will be limited only to new builds. All existing properties bought after 7.30pm tonight, May 12, will not be eligible for the tax concession.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>However, in a win for current investment property owners, the tax change is not going to applied retrospectively.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Existing investments will be shielded from the change and negative gearing will remain in place.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>That means if you signed a contract to buy a home before 7.30pm, you have dodged the prospective negative gearing changes.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Investments supporting government housing programs, for example, through the provision of affordable housing, will also be exempt from the reform.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Investors who buy established housing after tonight will still be able to deduct losses against other residential property income, including rental income or other capital gains, and will be able to carry forward unused losses to future years.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/federal-budget-2026-nightmare-scenario-for-australians-if-middle-east-war-continues/886d30df-d354-4f3d-a538-498595984a98" rel="" target="_blank" title="Budget reveals Australia could be on verge of being hit by nightmare scenario"><strong><span>Budget reveals Australia could be on verge of being hit by nightmare scenario</span></strong></a><strong></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Around 1.1 million Australians had negatively geared properties in 2022-23, according to Treasury tax analysis.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Just 17 per cent of investor loans were for new builds in 2025.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Chalmers said the tax changes will "level the playing field" for first homebuyers and help around 75,000 Australians achieve their dream of home ownership.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Negative gearing has been a tense political flashpoint for years.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Greens and crossbenchers have long called on the government to wind back negative gearing and CGT discounts, criticising them both as unfair tax discounts which only drive up the price of homes and rent.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Real estate analysts, however, previously </span><a href="https://www.9news.com.au/national/federal-budget-2026-real-estate-boss-warns-rent-increase-negative-gearing/518dabe2-1d55-4c07-93c8-5b96bba23c23" rel="" target="" title="warned the changes to negative gearing could be catastrophic for renters."><span>warned the changes to negative gearing could be catastrophic for renters.</span></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span> It is predicted that landlords could hike rent by up to 30 per cent in response to the changes.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/federal-budget-2026-government-unveils-250-dollar-tax-relief-minimum-tax-on-wealth-trusts/885f4657-b89b-431d-8f0d-330459a1dfe9" rel="" target="_blank" title="More than 13 million Aussies to get $250 tax bonus"><strong><span>More than 13 million Aussies to get $250 tax bonus</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><strong><span>Chalmers takes an axe to CGT</span></strong></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The equally-contentious 50 per cent capital gains tax (CGT) discount will be replaced by a new type of discount, based solely on inflation, only for investors in existing properties.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The CGT discount is a $23 billion tax break which allows investors to sell an asset they've owned for at least a year and to only be taxed on half of the profit.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Investors will pay tax on their real capital gain when they sell a property from July 1, 2027.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Essentially, this means investors with lower gains will pay less tax, while anyone with gains "well above inflation" will pay more tax, according to budget papers.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Again, investors in new builds can keep enjoying the 50 per cent CGT tax discount, or chose the inflation-based discount.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>There will be a minimum 30 per cent tax rate on capital gains from July next year too.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The CGT discount has been blamed for driving up house prices and making home ownership even more difficult for renters and younger Australians.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>A 2026 report by Oxfam Australia claimed that just 24,000 of Australia's millionaires accounted for almost half the beneficiaries of the CGT discount.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The discount cost the government $21.8 billion in 2025-26, according to the Tax Expenditures and Insights Statement.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Both tax overhauls are forecast to save the federal government an estimated $1.35 billion by 2028-29 and $2.28 billion by 2029-30.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 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