How 2026 Negative Gearing Changes Affect Investors

Negative gearing has been part of Australian property investing for so long that many people treat it as permanent. It isn't — and from July 2027 the rules are changing for established properties, which makes right now the moment to actually understand how it works.

In plain terms, negative gearing means your rental property costs more to hold each year than it earns, and at the moment you can use that loss to reduce the tax on your other income. Under the 2026 reforms, that benefit is being limited for established homes, while new builds are set to be treated more kindly. At the same time, the bank regulator tightened how much investors can borrow — so the tax side and the lending side shifted together.

None of this means investing is off the table. It means timing and structure matter more than they used to. The investors who do well will be the ones planning the purchase, the loan and the ownership together — with their broker and accountant — rather than one piece at a time.

Here's the practical bind for someone like Anita, weighing an established Brisbane rental: the change to established-property negative gearing from July 2027 and APRA's February 2026 tightening of investor borrowing landed together. Plan the tax side without the lending side and you can end up approved for less than you budgeted — or holding the wrong type of property for the new rules.

Two details decide where you land. Existing arrangements are expected to be grandfathered, so when you buy can matter as much as what you buy; and new builds and established homes are now heading in different directions, which may reshape what's actually worth buying. None of this is advice on your situation — confirm the current rules with your accountant before you act, and map the loan with your broker at the same time.