Vision Broking Group

Budget 2026-27 changes that impact property investment and small business

📈Negative gearing restricted to new builds

From 1 July 2027, negative gearing will generally only apply to new residential properties (and some eligible housing programs).

Existing properties are grandfathered (no change for current investors), but new purchases of established homes will have limited ability to offset losses against salary income.

Investors who buy established housing after Budget night will still be able to deduct losses against residential property income. They will be able to carry forward unused losses to future years but won’t be able to deduct them against other income like wages.

🏠50% CGT discount removed and replaced

The current 50% CGT discount will be replaced with inflation (cost base) indexation plus a minimum 30% tax on capital gains from 1 July 2027.

This shifts the system to taxing real (inflation-adjusted) gains, rather than providing a flat discount.

Grandfathering applies: assets held before budget night largely retain current rules, and CGT changes only apply to future gains after July 2027.

Transitional rules mean investors won’t be impacted retrospectively, but future investment decisions and tax outcomes will materially change.

🚗Instant asset write‑off

The Government is also improving cash flow for small businesses by permanently extending the $20,000 instant asset write‑off from 1 July 2026.

For detailed information you can follow the below link

Budget 2026-27 Australian Federal Budget, 2026-27

Australia’s rates are on the move again.

Today’s 0.25% rate increase by the RBA takes the cash rate to 4.35%.

This decision reflects ongoing inflation pressures, primarily driven by higher fuel prices, while noting that unemployment has remained steady at 4.30%.