Hello,
I have been planning to do a knock down on old houseand rebuild…. A new house with attached granny flat. So it will be a dual occupancy dwelling . I was planning to rent out the granny flat to help pay off the home.
under the new changes can I still negative gear the granny flat?
it will be a new dwelling and an increase in the number of homes on the property.
thanks for all answers
Currently it's proposed changes. You can read the Budget fact sheet, "Negative Gearing and Capital Gains Tax Reform"
"New builds can continue to be negatively geared before and after 1 July 2027.
For established residential properties:
Hi @Ildi_B,
Here's the link to the Boosting home ownership factsheet that @YellowPotato mentions.
The measures announced in the 2026 Federal Budget are not yet law. It's too early for us to be able to comment, but you can read more about the proposed changes in the 2026-27 Budget papers.
Thank you , I am possibly asking this question a bit to early…
I have read and reread the negative gearing and capital gains a tax reform. It makes me realise that my question is specific!
it states that new builds includes a duplex conducted through a knock down rebuild. ( increase in the number of residential properties)
BUT a granny flat next to an existing home is not included.
I will not have an opportunity to do this again so I want to get it right
thanks
21 May 2026 · 4 min read time
15 Apr 2026 · 8 min read time
571 views
3 replies