A new era for Australian property investors
The Australian property investment landscape is changing.
Recent Federal Government tax reforms have fundamentally altered the way investors need to think about residential property — particularly for anyone looking to build a portfolio over the next 5, 10 or 20 years.
From 1 July 2027, negative gearing on residential properties acquired after 12 May 2026 will generally be restricted to new-build properties. At the same time, the current 50% CGT discount is being replaced by an inflation-adjusted system for future capital gains, with transitional arrangements applying to gains accrued before 1 July 2027.
For investors, this is more than a tax change.
It is a change in strategy.
The question is no longer simply: “What property should I buy?”
The better question is:
“What investment strategy, property type and funding structure will best position me for long-term wealth creation under the new rules?”
That is where specialist advice becomes increasingly valuable.
A new investment partnership
We are pleased to be working alongside an established Australian property investment solutions business that specialises in identifying and presenting investment opportunities designed around an investor’s individual circumstances and long-term objectives.
We are intentionally keeping the partnership anonymous at this stage.
The important point is not the name of the provider.
It is the combined capability available to investors.
By bringing together property investment expertise with independent finance and lending expertise, we can help investors consider the complete picture:
- Property selection and investment fundamentals
- Growth and income potential
- New-build opportunities
- Investment structure
- Borrowing capacity and funding strategy
- Deposit and equity requirements
- Cash-flow implications
- Tax considerations
- Portfolio diversification
- Long-term wealth creation
- Exit and refinancing strategies
Why new-build property deserves a closer look
The tax reforms create an important distinction between established residential property and qualifying new-build investment.
From the 2027–28 income year, eligible investors will continue to be able to use negative gearing on qualifying new builds. New-build investors will also retain the ability to choose between the existing 50% CGT discount and the new indexation-based treatment under the proposed framework.
That doesn’t mean every new property is automatically a good investment.
Far from it.
The property still needs to stack up on its fundamentals.
Location, supply and demand, rental market, vacancy, price, construction quality, developer, builder, land component, depreciation, financing, holding costs and realistic capital-growth prospects all matter.
The tax treatment should support the investment strategy — not be the reason for the investment.
The opportunity for investors
The current environment presents an opportunity for investors who are prepared to be more strategic.
Rather than simply chasing the highest rental yield or buying an established property because it looks attractive, investors can now consider whether a carefully selected new-build investment can provide a combination of:
Capital growth + rental income + tax efficiency + financeability + long-term portfolio potential.
The objective is not to find a property.
It is to identify the right property for the right investor, within the right investment strategy.
A more coordinated approach to property investment
One of the biggest challenges investors face is that property selection, tax planning and finance are often considered separately.
We believe they should be considered together.
An investment property might look attractive on paper, but the strategy can change considerably once borrowing capacity, interest rates, deposit requirements, cash flow, ownership structure and future portfolio plans are taken into account.
That is why our role is not simply to arrange a loan.
We help investors understand how the finance fits into the broader investment strategy.
Thinking about your next investment?
If you are considering entering the property market, expanding an existing portfolio or reassessing your investment strategy following the 2026 tax changes, now is a good time to review your position.
There are still significant opportunities in Australian property — but the rules are changing, and the old investment playbook should not necessarily be the new one.
Let’s look at the strategy before you buy the property.
Contact Advanced Finance Group to discuss your borrowing capacity, funding options and investment strategy.
We can also introduce you to our investment solutions partner to explore suitable property opportunities based on your individual objectives.
Don’t buy the property first and work out the strategy afterwards.
Start with the strategy. Then find the property that fits it.
General information only. Property investment involves risk and is not suitable for everyone. Tax outcomes depend on individual circumstances and should be confirmed with your tax adviser. Finance is subject to lender assessment and approval. The 2026 tax reforms include detailed transitional and eligibility provisions that should be considered before making an investment decision.
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