From 1 July 2027, it is proposed that tax losses from established residential rental properties will only be deductible against rental income or capital gains from residential properties. However, eligible ‘new builds’ (which genuinely add to supply) will be exempt from these changes.

Importantly, the changes to negative gearing will only apply to residential properties held by individuals, partnerships, companies and most trusts. 

Transitional measures will apply and the following table provides an overview of how the changes will broadly apply from 1 July 2027, based on the Budget announcement.

Please contact us directly if you need any help with this.

(Source: Information extract from The NTAA Express)