New vs Established Investment Property in 2026: Why the Tax Rules Now Favour New Builds
From 1 July 2027, two investors paying the same price for the same rent can face very different tax bills, simply because one dwelling is new.
The Specialised Disability Accommodation (SDA) in Australia has recently witnessed significant improvements in the discharge process for its participants, leading to substantial financial savings and enhanced patient well-being. This blog post explores the remarkable changes and their impact on SDA patients transitioning from hospital to appropriate accommodation.
Key Developments:
Impact on Patients and the Health System:
Benefits of Specialised Disability Accommodation (SDA):
This transformative approach in handling SDA patient discharges into appropriate accommodation demonstrates a positive shift towards a more efficient and empathetic healthcare system, highlighting the crucial role of tailored care and support in improving lives and saving resources.
Key Takeaways:
From 1 July 2027, two investors paying the same price for the same rent can face very different tax bills, simply because one dwelling is new.
TL;DR The May 2026 Federal Budget abolished negative gearing for established properties purchased after 12 May 2026 and will replace the 50 per cent CGT discount with indexation from 1 July 2027. New builds are exempt and keep both tax benefits. With ABS data showing rents still rising and housing the biggest driver of inflation, high yield new builds such as co-living, dual occupancy and duplex homes now offer stronger cash flow and better tax treatment.
Australian property market forecasts for 2026 are generally positive, with most analysts expecting moderate price growth across the country. For property investors, however, headline growth figures tell only part of the story. The real question is not whether prices will rise, but where investment property fundamentals still stack up under tighter borrowing conditions and higher holding costs.
Don't just observe the housing crisis – leverage it. Understand how Australia's unprecedented dwelling deficit could be the catalyst for your next successful investment. Australia is grappling with a significant housing shortage, a topic dominating headlines and impacting individuals across the nation. While the human element of this crisis is undeniable, for astute property investors, it also presents a compelling, long-term opportunity.
National rents remain tight, but opportunities are emerging for savvy investors Australia’s rental market continues to show remarkable resilience, with the national vacancy rate holding firm at 1.2% in August 2025. According to SQM Research, this equates to just 37,742 vacant rental properties nationwide 121 fewer than the previous month. For property investors, the data tells a story of strong tenant demand, limited supply, and opportunities for carefully positioned investments.
In July 2025, total residential property listings fell 3% month-on-month and 1.8% year-on-year, according to SQM Research. This measured retreat in vendor activity shows many sellers are holding off ahead of the busy spring selling season. For Australian property investors, this market phase presents a unique set of opportunities. Supply is tightening in some cities, while others are seeing renewed confidence — and knowing where to focus could be the key to your next successful investment.
Capital Growth 12 months, measures the increase in a property’s value over the previous 12 months, indicating how much the investment has appreciated in that timeframe.
Capital Growth 10-year annualised, reflects the average annual increase in a property’s value over the last decade, smoothing out short-term fluctuations to show long-term appreciation trends.
Vacancy Rate, indicates the percentage of properties that are currently unoccupied in that postcode, It’s a key indicator for investors to assess the rental demand.