If you own an investment property on Brisbane’s southside, you have probably seen the headlines about negative gearing and capital gains tax. Some of them are alarming. Most of them are missing the one detail that matters most to you.
So let’s take a breath and walk through it together – what has actually changed, what it means for you, and what it doesn’t.
The short version for existing owners: nothing changes for you right now
Here is the part the headlines tend to bury. If you owned your investment property before 7:30pm on 12 May 2026 (Budget night), you are grandfathered. That means the current negative gearing rules continue to apply to that property for as long as you hold it.
For most of the landlords we manage, that is the whole story. You can keep offsetting rental losses against your other income, exactly as you do now. No action needed, no change to your returns this financial year.
If you signed a contract before Budget night but were still waiting to settle, you count as an existing owner too. And if your property happened to be positively geared on Budget night but tips into negative gearing later – say interest rates or council rates shift – you are still covered, because the rules follow when you bought, not your position on the night.
What has actually changed, and when
Two reforms are now law, both starting 1 July 2027.
First, negative gearing on established residential property is being limited to new builds. From that date, an investor who buys an existing home after Budget night can only offset rental losses against residential property income, not against wages or other income. Any unused losses can be carried forward to future years, but they stay quarantined to residential property.
Second, the 50 per cent capital gains tax discount is being replaced. In its place is a discount based on inflation (cost base indexation) plus a minimum 30 per cent tax on gains. This only applies to gains that build up after 1 July 2027, so everything you have gained to that point is calculated the old way.
New builds keep both benefits – negative gearing and the choice of the old 50 per cent CGT discount. That is deliberate. The government’s stated aim is to steer investor demand toward new supply rather than established homes.
If you’re thinking about buying another investment property
This is where a bit of planning pays off, and where we are genuinely useful.
The changes don’t close the door on investing – they change which door is most attractive. From July 2027, a new build carries meaningfully better tax treatment than an established home, because you keep both negative gearing and the existing CGT discount.
That doesn’t automatically make a new build the right choice for you. Established homes on the southside still offer things a new build often can’t: mature streets, proven school catchments, land content, and rental demand we have watched hold steady for generations. The tax treatment is one input, not the whole decision.
What we’d suggest is simple. Before you buy, talk to us about the numbers on both options, and talk to your accountant about how the CGT and negative gearing settings apply to your situation. A property that stacks up on rental return and location can still be a strong buy under the new rules – the maths just looks a little different.
A note on capital gains and record-keeping
Because CGT will be calculated differently for gains after 1 July 2027, good records become more valuable, not less. If you are considering selling down the track, a proper valuation and a clear paper trail on what you have spent will matter. We can point you toward what to keep and, where valuations are needed, our qualified valuers Michelle Clair and Trevor Matthews can help.
Generally speaking, this is not something to act on in a hurry. It is something to be aware of and to factor into longer-term plans.
What this means for the Brisbane market
Early forecasts suggest the reforms may cool price growth a little and nudge some investor demand toward new dwellings. Dwelling price growth for 2026 has been revised down modestly. None of that changes the fundamentals we see on the ground every day – southside suburbs like Annerley, Moorooka, Salisbury, Tarragindi, Yeronga and Fairfield continue to attract tenants who want to live close to the city, close to good schools, and in communities that hold their value.
Markets adjust. They always have. We have managed properties through every cycle since 1933, and the constant has been the same: a well-located, well-managed property in a suburb people want to live in tends to look after its owner over time.
Where we come in
You don’t need to become a tax expert overnight, and you don’t need to make any sudden decisions. If you already own with us, your position is steady and it’s business as usual.
If you are weighing up your next purchase, that is exactly the kind of conversation we like to have – an honest look at the numbers, the suburb, and what actually suits your goals.
We’re not just your agent – we’re your neighbour. And we’re invested in helping you make a confident, well-informed decision.
Feel free to get in touch whenever you’re ready. We’ll take it from there.
This article is general information only and does not take account of your personal circumstances. For advice specific to your situation, please speak with your accountant or a licensed financial adviser.
R. Matthews & Son Pty Ltd | Trusted by Brisbane property owners since 1933