The Federal Budget released on Tuesday night has introduced some of the biggest proposed changes to property investment in a generation - particularly around negative gearing and capital gains tax.
While headlines can create uncertainty, it’s important to look beyond the noise and understand what these changes could actually mean for you as a property owner.
According to LJ Hooker’s latest Federal Budget analysis, the property market is already shifting into a new phase.
At the same time, the core issue hasn’t changed: Australia still doesn’t have enough homes.
One of the most talked-about announcements is the proposed change to negative gearing, set to begin from 1 July 2027.
Under the proposed reforms:
However, there’s an important detail:
New builds will remain exempt from these restrictions
This signals a clear intention — to encourage more investment into new housing supply, rather than existing homes.
The Budget also proposes changes to capital gains tax (CGT):
Again, newly built properties may retain concessional treatment — reinforcing the focus on boosting housing supply.
Despite the focus on tax reform, LJ Hooker’s analysis is very clear:
“Australia’s biggest problem is still supply.”
There are still major constraints:
And while the Budget includes measures to address this — such as infrastructure funding, faster approvals, and construction incentives — these solutions take time to flow through.
The key question now is how investors respond.
Here’s what we may see:
Investors may become more cautious, particularly with established properties, as tax settings change.
Because new properties remain incentivised, we could see:
This is one of the biggest watchpoints.
If investor activity slows before new housing supply increases, rental conditions could remain tight — especially in areas with already low vacancy
Here in Yarrabilba and the surrounding corridor, we’re still seeing:
These local conditions reflect the broader national trend — supply remains tight, even as the market becomes more balanced.
While the Federal Budget introduces significant changes, the fundamentals of the property market haven’t shifted:
Tax changes may influence behaviour, but supply is still the biggest driver of long-term performance and affordability.
The Federal Budget has introduced a number of detailed changes that go beyond the headlines — particularly when it comes to negative gearing, capital gains tax, and future supply measures.
If you’d like a clearer, more detailed understanding of what’s been announced, LJ Hooker has put together a comprehensive report covering:
Download the full LJ Hooker Federal Budget Report here
While reports are helpful, every property — and every investor — is different.
If you’d like to understand:
Feel free to reach out for a personalised update — we’re here to help you navigate these changes with confidence.