Negative Gearing Changes: What Property Investors Need to Know

The proposed negative gearing changes in the 2026 Federal Budget are generating a lot of questions from property investors.

Let’s cut through the noise.

What’s actually proposed

The Government proposes restricting negative gearing on established residential properties acquired after 12 May 2026.

Three important exceptions apply:

• Existing properties already owned before the announcement remain eligible
• New residential construction continues to be supported
• Affordable housing investments are also excluded from restrictions

In short: if you already own property, you are generally grandfathered under the existing rules.

Future property decisions may look different.

What this means for investors

For those holding existing portfolios, there is no immediate need to act.

For those planning future acquisitions, asset selection and ownership structure may become more important than ever.

The question is no longer simply: should I invest in property?

It becomes: which property, in which structure, with which strategy?

For some investors, Family Protection Trusts remain highly appropriate. For others, SMSFs may become increasingly attractive for future acquisitions, particularly where the investment aligns with long-term retirement objectives.

There is no single right answer. The right answer depends on your cash flow, borrowing capacity, family circumstances and wealth goals.

These reforms are not yet law

Like most major Budget measures, these changes must pass Parliament before they become reality.

But given the scale of change proposed, now is an excellent time to review your portfolio strategy.

We’re here to help you navigate this — clearly, without the panic.

Want to talk through what this means for your situation? We’re always only one call away.

Book a conversation with the Lighthouse team → hello@lha.au · 02 9055 1330