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vishnujith(Newbie)Newbie
12 May 2026

I am seeking clarification regarding the proposed negative gearing changes announced in the Federal Budget 2026.


Situation

  1. Currently own and live in Property A (owner-occupier) before 12th May 2026
  2. Build and move into Property B as new home next year
  3. Rent Property A out


Under the proposed negative gearing changes, would Property A be treated as:

  1. A grandfathered property because it was already owned prior to the policy commencement/cutoff date, or
  2. An existing property that only became an investment property after the policy start date, and therefore not eligible for grandfathering?

I would appreciate clarification on how the proposed rules are intended to apply in this situation.


87 views
2 replies
87 views
2 replies

All replies

TaxFree(Champion)Champion
17 May 2026

The proposal they put forward could still change as it needs to become law first. Because of this they can't really tell you the details of what will happen yet.

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What are the negative gearing rules for existing PPOR properties becoming investments? | ATO Community