The last negative gearers: Property investors warned it is ‘too late’ to beat major tax reform deadline

Australia’s federal budget will introduce major tax reforms for property investors, with Treasurer Jim Chalmers set to unveil changes on Tuesday. Existing landlords will retain current negative gearing and capital gains tax (CGT) discounts, but new purchases after budget night will face restrictions—negative gearing and the 50% CGT discount will apply only until July 2027. The government claims the reforms will reduce intergenerational wealth gaps and help first-home buyers enter the market. Industry figures, including auctioneer Tom Panos, urge investors not to rush purchases before the deadline, calling the reforms an ‘ambush’ after Prime Minister Anthony Albanese denied plans to alter negative gearing during last year’s election campaign. Panos received hundreds of inquiries from potential buyers but advised against last-minute transactions, stating it’s not as simple as ‘ordering Uber Eats.’ Jennie Tonner, president of the Australian Institute of Conveyancers’ NSW division, reported increased activity from clients trying to sell investment properties ahead of the budget. Meanwhile, leaks over the weekend revealed negative gearing concessions for existing properties will be preserved, but new-build dwellings will remain eligible under the current scheme. The Australian Financial Review confirmed the government will allow a one-year grace period for negative gearing and CGT changes on properties bought after budget night. However, the CGT discount will revert to pre-1999 indexation rules, limiting long-term tax benefits. Experts warn the reforms could stifle rentvesting trends among younger Australians seeking wealth through property investment.