The negative gearing changes that have been debated for years just cleared their first hurdle in federal Parliament. For property investors across Australia, it is a moment worth understanding — without panicking.
What happened
On Thursday 4 June 2026, the first tranche of the federal budget tax measures passed the House of Representatives by 94 votes to 48. The package includes adjustments to negative gearing arrangements for established homes and a change to capital gains tax (CGT), moving away from the flat 50 per cent discount on established dwellings toward an inflation-adjusted indexation method, alongside a minimum tax rate on net capital gains. The same bill also carried a $1,000 instant tax deduction and a $250 tax cut for wage earners.
Two amendments were voted down during the bill’s passage — one seeking to lift the small business CGT exemption threshold, and another seeking to limit the CGT changes to property only.
Importantly, this is not law yet. The bill has been referred to the Senate economics legislation committee, with hearings scheduled for 15–16 June and a report due by 22 June. The Greens hold the balance of power in the Senate and have signalled they may push for stronger reforms before it passes.
What this means for you
For investors, two points stand out. First, existing investments look set to be grandfathered — meaning property you already hold would continue to be treated under the current rules. Second, for any new purchase, the timing and the type of property (established versus new) could shape the tax treatment down the track.
None of this is settled, and none of it is tax advice. The right move depends on your income, your existing portfolio, and your goals — which is exactly the kind of detail worth mapping out before you commit to anything. A conversation with your accountant and your broker, looking at your actual numbers together, will tell you far more than any headline.
If you are weighing an investment purchase this year and want to understand how these changes could affect your plans, talk to a Finance Hub broker — call 0430 11 11 88 or visit finhub.net.au.
Source: The Adviser, 5 June 2026.
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