What the negative gearing ban means for you from 2027

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A loophole in the federal government’s negative gearing reforms could allow millions of Australian homeowners to still access property tax benefits after the rules change in 2027.

Under the new policy, negative gearing will mainly apply only to newly built homes, super funds, and properties purchased before budget night.

However, existing owner-occupiers who bought their home before the announcement may still be able to convert that property into an investment later and keep the tax concession.

Economists say the exemption could encourage many homeowners to hold onto their properties longer, potentially slowing housing turnover.

Property experts have also warned new investors to be cautious about rushing into newly built developments simply to claim tax benefits.

Some large apartment projects and house-and-land packages may offer attractive incentives, but experts say these properties often deliver weaker long-term growth due to oversupply.

Experienced investors continue to favour established homes in high-demand areas, even without the same tax advantages.

The reforms are part of the government’s broader push to improve housing affordability for younger Australians entering the property market.

Source : 9 News

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