2027 Negative Gearing Changes
Check how the 2027 negative gearing changes apply to a property. Indicative only.
Enacted 26 June 2026, taking effect 1 July 2027. Confirm with your accountant or registered tax agent.
Properties with a contract of sale signed on or before 12 May 2026 are grandfathered under the enacted 2026-27 Budget reforms. Grandfathered properties retain full negative gearing under existing rules. The cut-off is the contract date, not the settlement date.
Residential investment properties contracted after 12 May 2026 face loss quarantining from 1 July 2027 under the enacted legislation. Under quarantining, rental losses can only offset residential rental income or capital gains, not salary or wage income.
Newly constructed residential properties remain exempt from loss quarantining under the enacted legislation. The legislative definition of new build has not yet been released. Confirm the status of a specific property with a registered tax agent.
Enacted 26 June 2026, effective 1 July 2027. Indicative only. Not tax or financial advice. Confirm with your accountant or registered tax agent.
For a full explanation of the 2027 changes, including grandfathering, loss quarantining, and exemptions: Read the full guide to the 2027 changes