The 2026–27 Federal Budget restricted negative gearing on established residential property — permanently. For purchases after 12 May 2026, those tax losses can no longer be offset against your salary income from 1 July 2027.
One strategy still keeps the full tax advantages intact. And the investors who move now will be the ones who benefit most.
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What Just Changed
For years, Australian investors could buy established residential property, use the rental losses to offset their salary income, and reduce their tax bill every single year.
That strategy is now restricted. For any established residential property purchased after 12 May 2026, those losses can no longer be offset against salary income from 1 July 2027. The government has drawn a clear line in the market — and on one side of that line, the full tax advantages still exist.
Purchased after 12 May 2026
Negative gearing losses restricted — can only offset against future rental income, not salary.
Full tax advantages preserved
Full negative gearing against salary income — fully preserved. Full 50% CGT discount — fully preserved.
Existing holdings unaffected
Your current negative gearing is protected. Existing holdings are unaffected by the budget changes.
Restrictions apply to established residential property purchased after 7:30PM AEST 12 May 2026, effective 1 July 2027. Commercial property, shares and SMSF-held property are unaffected. General information only — not financial, legal or tax advice.
The Strategy That Still Works
Not because they're trendy. Because the numbers make sense — and the budget just made that gap wider.
Reduce your taxable income. Improve your cash flow. Keep more of what you earn — every financial year.
Hold for 12 months and retain the full CGT discount at the time of sale. Or elect cost base indexation — whichever produces the better outcome for you.
New construction attracts stronger depreciation schedules than established property — a pre-existing advantage that compounds your tax position further.
The investors who understand structural shifts early are the ones who position best. The ones who wait until the media catches up are normally too late.
How Greenrock Clients Are Responding
Get the full Greenrock Advisory breakdown of the 2026–27 Federal Budget changes, what they mean for Australian investors, and why new builds are now the strategic priority.
Speak with a Greenrock advisor who will review your income, existing property portfolio, and financial goals — and map out what this budget change means specifically for your situation.
Whether you're a high-income earner, a rentvestor, or an existing investor planning your next move — we'll help you act with confidence, not guesswork.
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Is This Strategy Right For You?
Earning $150k+ and watching too much disappear to tax every year
New build investment property — structured correctly — reduces your taxable income, improves your cash flow, and builds long-term wealth. The budget just made this the most effective remaining structure for high-income Australians.
Already own investment property and planning your next move
Your existing negative gearing is protected. But what you buy next has never mattered more. Understanding the new landscape before you act is critical.
Want to live where you love — but invest where the numbers make sense
More Australians are choosing to rent in their preferred suburb while owning investment property in high-growth markets. This budget has made that strategy even more compelling.
Thinking about buying an established investment property post-May 2026
Before you do — understand exactly what the new rules mean for your tax position. The guide breaks it down clearly. No jargon. No obligation.
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Michael Mancuso
Co-Founder & CEO
The investors who move early usually benefit the most. The investors who wait until the media catches up are normally too late.
Joe Barker
Senior Investment Strategist
When your tax strategy and investment strategy work together properly, your money starts working harder for you — not against you.
Abbey Holmes
Property Specialist
The right property, combined with the right tax structure, can completely change your financial position over time. Structure is everything.
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Common Questions
The budget announcement has been made. The rules have changed. And right now, the strategy is clear — but the window for maximum advantage is open to those who move with intention.
The guide is free. The strategy session costs nothing. The decision to act — or wait — is yours.
Free · Instant access · No obligation · 2,500+ Australians already trust Greenrock's research
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