The fatal flaw in Labor’s capital gains tax reform

Sunday 17 May 2026

Last week’s federal budget announced fundamental changes to Australia’s negative gearing and capital gains tax regimes, summarised below.

Negative Gearing:

From 1 July 2027, negative gearing will only apply to newly built residential properties.

Existing properties purchased before 12 May 2026 are fully grandfathered — no change to current rules.

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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.