New Federal Investment Property changes effective 1st July 2027

I wanted to cut through the media noise and give you the most important takeaway right up front. If your current investment property was established prior to the 12th of May 2026, then: You are secure, grandfathered & largely protected.

THE THREE KEY CHANGES — WHAT THEY MEAN FOR YOUR WEALTH

1 Negative Gearing: Your Current Properties Are Grandfathered PROTECTED SHIELD Your existing properties are completely exempt. Because they were established before the 12 May 2026 cutoff, you can continue to negatively gear them exactly as you do now — until the day you choose to strategically sell. FUTURE If you buy established properties after July 2027, losses get quarantined against property income. However, any future new builds will still enjoy full traditional negative gearing benefits.

2 Capital Gains Tax (CGT): A Shift to Indexation from 1 July 2027 TRANSITIONAL The current flat 50% CGT discount for assets held over 12 months will be replaced by cost base indexation + a 30% minimum tax on real capital gains. You will only be taxed on the real economic gain — not the inflationary component. PAST GAINS All capital growth to July 2027 still qualifies for the old 50% discount. You won't lose what you've already built. The ATO will provide valuation tools to establish a 1 July 2027 cost base. NEW BUILDS For future new builds you'll choose whichever method saves you more at sale — the traditional 50% discount or the new indexation method.

3 Trust Changes: Time to Review — Not Panic (Effective 1 July 2028) ACTION REQUIRED IMPACT If you hold investment properties within a discretionary family trust, a 30% minimum tax will apply to trust income from 1 July 2028, paid directly by the trustee. OPPORTUNITY The Government is providing a three-year window from July 2027 to restructure into different entities completely penalty-free — no CGT or stamp duty triggers. This is a significant concession worth acting on

THE BOTTOM LINE The 2026–27 Budget respects your past investment choices. Your current established portfolio remains highly tax-efficient and secure. Your strategy for future acquisitions will need to pivot — and we are here to help you do exactly that. The market isn’t stopping — it’s just pivoting. Asset performance, maximising deductions & maintaining high rental yields are now more critical than ever.

Australia has changed & will continue to change