Is a new build or an established property better in 2026?
Neither is automatically better: qualifying new dwellings now get more generous tax treatment, but tax is only one input alongside location, price, build quality, finance and rental fundamentals.
We are never paid by developers or builders, so we have no reason to steer you toward a new build or away from one. Every property is screened for rental yield, vacancy and demand, population and infrastructure, and tax and structure fit.
| Qualifying new dwelling | Established residential property | |
|---|---|---|
| Negative gearing | Excluded from the new restriction | If acquired at or after 7:30pm AEST on 12 May 2026: from the 2027–28 income year, excess deductions can't reduce wages or other non-residential income. Bought before then: grandfathered |
| Capital gains tax | Investors can choose the existing 50% discount or the new inflation-based treatment | For gains accruing from 1 July 2027: cost base indexation plus a 30% minimum tax rate replaces the 50% discount. Earlier gains keep the old rules |
| Does it qualify? | Not automatic. The dwelling and acquisition must meet the requirements made under the legislation | No new-dwelling test to pass |
| Main extra risks | Builder, valuation, timing and contract risk | Building condition, strata, rental position and title |
| Help to Buy (first home) | Government contribution of up to 40% | Government contribution of up to 30% |
Official sources: Treasury Laws Amendment (Tax Reform No. 1) Act 2026, Treasury's 2026–27 tax summary and Help to Buy.
Does negative gearing still work on established property?
Yes for established property bought before 7:30pm AEST on 12 May 2026, which keeps the current rules; for established property bought at or after that time, rental losses can no longer reduce your salary or other personal income from 1 July 2027.
Those losses are not lost. They can be carried forward and used against future residential rental income or capital gains from residential property. The calculation looks at your residential holdings across the income year, so an investor with other positively geared property may get a different result. The legislation guide explains the portfolio-level calculation.
How is capital gains tax different for each?
From 1 July 2027 the flat 50% CGT discount is replaced on established residential property, while qualifying new-build investors can still choose it.
The replacement adjusts your purchase price for inflation and applies a 30% minimum tax rate to the real gain. Gains that accrued before 1 July 2027 remain under the old discount rules. Ask a registered tax adviser to model both treatments for your asset and ownership structure.
Does a house and land package count as a new build?
It may, but not automatically: the completed dwelling and the transaction must satisfy the requirements made under the legislation.
The legislation allows those requirements to consider whether a dwelling was built on vacant land, substantially renovated, or built to replace a demolished dwelling. Have your tax and legal advisers confirm the dwelling's status for the specific contract before relying on new-build treatment.
What extra checks does each option need?
A new build needs construction due diligence on the builder, contract, valuation and completion timing; an established property needs checks on its condition, strata, rental position and title.
- New build and house-and-land: location, builder, contract and completion risk, assessed before you commit.
- Established: building and pest, strata, rental appraisal and title.
- Either, through an SMSF: from 10 August 2026 a new LRBA involving real property must be for business real property, so a fund buys residential property with cash. Compliance checks run with your adviser.
What about first home buyers?
Help to Buy offers a larger government equity share for a new home (up to 40%) than for an established one (up to 30%), with a deposit as low as 2% and income limits.
The 5% Deposit Scheme is separate: eligible first-home buyers can purchase with a 5% deposit and no Lenders Mortgage Insurance, subject to property-price rules. Help to Buy is an equity share, not a grant. Scheme details and thresholds.