What the 2026–2027 Federal Budget Means for Brisbane Property Investors

The Federal Budget has landed and if you own an investment property, or you’re thinking about buying one, there are some significant changes worth understanding clearly.

This is a general summary of the announced measures for informational purposes only. It does not constitute financial, tax, or legal advice. Individual circumstances vary and we strongly encourage you to speak with your accountant or financial adviser about how these changes may specifically affect your portfolio and tax position.

Here’s what you need to know.

1. Negative Gearing Is Changing — But Not Right Away

From 1 July 2027, negative gearing will be limited to new residential builds only. Established properties purchased after that date will no longer be eligible.

Here is how it breaks down depending on your situation:

If you already own an investment property held before 7:30pm AEST on 12 May 2026 You are fully protected. Nothing changes. You can continue to negatively gear that property for as long as you hold it.

If you purchase an established property between now and 30 June 2027 You can still negatively gear it during that window, but not from 1 July 2027 onwards.

If you purchase an established property from 1 July 2027 Negative gearing will not apply.

One detail worth noting: rental losses on established properties purchased after the announcement can still be carried forward to offset future residential property income or capital gains. It is a change in how and when the benefit applies, not a complete removal of it.

2. Capital Gains Tax Is Being Restructured

From 1 July 2027, the existing 50% CGT discount will be replaced with a CPI cost base indexation model and a minimum 30% tax rate on real capital gains.

In plain terms, instead of automatically halving your taxable gain when you sell, the original purchase price of your asset will be adjusted for inflation over time. Tax will then apply to the remaining real gain above that adjusted figure.

How this affects you will depend on a number of factors:

1. How long you have held the property
2. Inflation levels over that period
3. How much the asset has grown in value
4. Your marginal tax rate

The key protection to know about: any gains that have already accrued before 1 July 2027 will still receive the current 50% CGT discount. Only growth from that date forward falls under the new system.

It is also worth noting that investors with lower returns relative to inflation may actually pay less tax under the new indexation model than under the current system. The impact will genuinely vary from person to person.

One practical step worth considering now: under the new rules, you will need to establish the value of your property as at 1 July 2027 to determine how your capital gain is split between the old and new tax arrangements. Getting a formal valuation at that date will be important for ensuring your property is assessed at its full current market value and maximising the portion of your gain that falls under the existing 50% CGT discount before the new rules take effect.

3. New Builds Become Considerably More Attractive

This is one of the most significant shifts in the Budget for investors.

New residential builds will retain access to:

1. Negative gearing on an ongoing basis, including the ability to offset losses against other income such as salary
2. The choice between the existing 50% CGT discount or the new indexation model when you sell

This makes new construction — including off-the-plan apartments, duplexes, and new builds on vacant land — considerably more attractive from a tax perspective than established properties going forward.

One important clarification: the new build tax benefits apply to the first purchaser only. If you buy a new build that has previously been sold by the builder, you will not be able to access negative gearing or the 50% CGT discount on that property.

4. What This Could Mean for Brisbane

Brisbane’s market fundamentals remain solid. Vacancy rates are tight, population growth continues, and rental demand is consistently outpacing available supply.

That said, here is what we anticipate:

1. Investors will become more strategic and selective in their acquisition decisions
2. Interest in new builds will increase from a tax efficiency standpoint
3. Demand for established investment properties may soften over time
4. The focus will shift toward cash flow, yield, and long-term fundamentals

Well-located Brisbane properties with quality tenants and strong underlying fundamentals should continue to perform. But investor behaviour is going to become more deliberate — and that is not necessarily a bad thing.

One risk worth watching: if investor confidence pulls back too sharply, rental supply could tighten further. That may benefit landlords in the short term but it also creates real pressure for tenants, which is something the market will need to navigate carefully.

5. What to Do Next

If you are a Brisbane property investor, here are the steps worth taking now:

1. Speak to your accountant or financial adviser about how these changes apply to your specific portfolio and tax position
2. Consider a formal property valuation before 1 July 2027 to establish your base value under the old CGT rules
3. Review your current strategy — whether you are holding, selling, or considering a new acquisition, the landscape has shifted and your approach should reflect that
4. Stay informed as further detail and market data comes through over the coming months

If you have questions about how these changes might affect your Brisbane investment property, or you would like to talk through your current position, we would love to hear from you.

Get in touch with the Flourish Homes team today.

Please note: This article is a general summary of announced Federal Budget measures and is intended for informational purposes only. It does not constitute financial, tax, or legal advice. Please consult a qualified professional regarding your individual circumstances.