Australia's budget scraps negative gearing for existing homes
Australia's 2026 federal budget scraps the negative gearing tax benefit for the purchase of existing residential investment properties. The decision ends a decades-long tax debate and could change the dynamics of the housing market.
Australia's 2026 federal budget, unveiled on Tuesday evening, scraps the negative gearing tax break for existing residential properties purchased as investments. The change applies to properties bought from the night of the budget onwards.
ABC News Australia reported that Treasurer Jim Chalmers said the change is intended to encourage construction of new dwellings for the rental market while reducing speculative demand for existing homes. The same budget also recalibrates the capital gains tax discount in some categories.
The reform ends a decades-long political debate in Australia. Property industry representatives say the move may dampen investor demand in the short term, while economists point to the potential of the change to improve housing affordability over the longer term.
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