The 2026 – 27 Budget: What It Means for Investors, Buyers & Renters.
Property was a central focus of this year's budget - with major changes to housing supply, foreign investment, and renter protections. Combined with income tax cuts, these announcements affect every corner of the market.
$6.3 billion invested in housing infrastructure | 65,000 new homes projected over the next decade | Foreign buyer ban extended to 2029
Buyers:
The change: The government has committed $2 billion to help local governments and state utilities build essential infrastructure - water, power, sewerage, and roads - to unlock land for new housing.
What it means: This funding underpins the delivery of up to 65,000 new homes over the next decade. More supply in growth corridors should ease long-term price pressure in those areas.
Investors:
The changes: As of April 2025, foreign investors have been banned from purchasing established homes, a restriction that will remain in place until March 2027. Looking ahead, from 1 July 2027, negative gearing will be limited to new builds only, and the existing 50% capital gains tax discount will be replaced by cost-base indexation, with superannuation funds excluded from this change. Also taking effect from the same date, a minimum 30% tax rate will apply to real capital gains, though this will only be triggered at the point of sale.
What it means: The foreign investor ban means less competition for local investors looking to purchase established properties in the near term. However, from July 2027, the tax advantages that have traditionally made established property investment attractive will be significantly reduced. Currently, losses on an investment property can be offset against your salary to lower your tax bill, but from July 2027 negative gearing will only apply to new builds, meaning established property investors will lose this benefit. At the same time, the 50% capital gains tax discount on profits will be replaced by inflation-adjusted cost-base indexation, which will generally leave short-to-medium term holders worse off, while long-term holders may break even or benefit depending on inflation. Finally, any inflation-adjusted gain made on sale will be subject to a minimum 30% tax rate, regardless of income structures or deductions, though this will have no impact until the property is actually sold.
Renters:
The changes: Commonwealth Rent Assistance has been increased two years in a row, marking the first back-to-back rises since the early 1990s. Alongside this, the federal government is working with states and territories to harmonise renters' rights across the country, with efforts focused on standardising rules around bonds, repairs, and evictions. From 1 July 2026, income tax cuts will also mean more take-home pay for renters, providing further financial relief.
What it means: This budget delivers the most direct financial support for renters in a generation. The consecutive CRA increases acknowledge that rents have outpaced incomes. National harmonisation of renters' rights will bring greater consistency to your protections, regardless of which state you're in. If homeownership is your goal, the tax cuts from July 2026 can meaningfully shorten your deposit savings timeline.
The Bigger Picture
This budget signals a clear shift in direction - more homes, fairer conditions for renters, and a deliberate push to redirect property investment toward new supply rather than existing stock.
For buyers, the pipeline is growing. For renters, protections and payments are improving. For investors, the rules are changing - and July 2027 is the date to plan around. Whatever your position in the market, now is the time to review your strategy. Our Instant Digital Rental Report gives you a clear snapshot of recent rental results, suburb performance, rental yields and emerging trends - all in one free, easy-to-read report.
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