Tax changes won’t shift the dial on housing construction
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The changes to negative gearing and capital gains tax (CGT) announced in last week’s federal budget were specifically designed to push investors away from existing homes and towards new construction by restricting tax benefits to new builds only.
The aim is to shift investor demand so that investment adds to housing supply rather than bidding up the price of existing stock.
From 1 July 2027, investors can only fully negative‑gear newly built dwellings.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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