Earlier this week, the Australian Federal Government announced sweeping changes to Negative Gearing and Capital Gains Tax — two tax conversations New Zealand investors know all too well.

Treasurer Jim Chalmers says the reforms are aimed at:
• helping first home buyers compete with investors
• improving housing affordability for younger Australians
• directing more investment towards new housing supply

Politics aside, the reality is these changes will directly impact Australian property investors, including many of our own clients.

From 1 July 2027, Negative Gearing concessions will largely be restricted to new builds. For many existing residential investment properties purchased after 12 May 2026, losses will effectively become ring-fenced — meaning they can no longer be offset against personal income such as salary and wages.

The Government has also confirmed changes to Capital Gains Tax, scrapping the current 50% CGT discount and replacing it with a CPI indexation model, alongside a new minimum 30% tax rate on capital gains.

While the Negative Gearing changes are mostly grandfathered — with properties owned before the announcement date generally remaining under the current rules — the long-term implications are still significant. Portfolio structure, cashflow, borrowing capacity, and overall investment returns will all be affected.

If you own Australian investment property, or are considering investing across the Tasman, now is the time to review your position. In our experience, the earlier you get ahead of changes like this, the more options you usually have — and the better the outcomes tend to be.