1Meet Tom. He's 45 and thinking about buying an investment property.
2Negative gearing is when an investment's costs, like interest, are more than its income, and the loss lowers other taxable income.
3From 1 July 2027, it's limited to new builds for residential property.
4Properties held before 7:30pm AEST on 12 May 2026 are exempt from the change.
5For established homes bought after that, losses can only offset residential property income, including capital gains, and can be carried forward. They can't reduce tax on wages.
6This is law under the same Act as the CGT change. Tom gets advice before he buys.
The end
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