Negative Gearing Limits 2027: What Investors Lose
The negative gearing changes announced in the 2026 Budget are the most significant restriction on residential property investment in Australia's recent tax history, and they are now law. Announced in the 2026-27 Federal Budget on 12 May 2026 and enacted in June 2026, the change means that from 1 July 2027, investors who purchase established residential property after 7:30pm AEST on Budget night will no longer be able to offset rental losses against their salary or business income. The cut-off is clear: existing property holders are grandfathered indefinitely, new builds remain fully exempt, and the change affects only established dwellings acquired from that point forward. It was arguably the most politically contested element of the entire Budget package.
Read MoreTax Deductions for Real Estate Agents in Australia
In short: Australian real estate agents, from salaried and commission-only salespeople to agency owners, can claim vehicle costs, the work-related share of phone and internet, marketing they pay for themselves, licence and Real Estate Institute fees, and insurance. Vehicle expenses are often the single largest deduction, and for high-kilometre agents the logbook method is essential. Plain suits and business shirts are not deductible.
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