Will the budget’s tax changes help or hinder housing supply?
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The federal budget’s changes to negative gearing and capital gains tax (CGT) were designed to reduce investor demand for established housing, thereby lowering prices, without negatively impacting housing supply.
From 1 July 2027, investors will only be permitted to fully negatively gear newly built dwellings.
From 1 July 2027, the 50% CGT discount is abolished and replaced with cost‑base indexation (taxing only real gains) and a 30% minimum tax rate on capital gains.
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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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