Last night's federal budget delivered the biggest shake-up to property investment in three decades. From 1 July 2027, negative gearing on established residential property purchased after 7:30pm on 12 May 2026 will no longer be available against personal income. Capital gains tax (CGT) concessions are tightening too, with the 50% discount replaced by an indexation-based regime and a 30% minimum effective rate.
Existing property investors are not affected. But for anyone considering a new investment property from this point forward, the maths has changed materially.
Here is what struck us most when we read the fine print: superannuation funds are explicitly excluded from the new limitations.
That single carve-out shifts the calculus around residential property meaningfully. Inside a self-managed super fund (SMSF), rental income is taxed at 15% during accumulation and 0% in pension phase. Interest on a limited recourse borrowing arrangement remains fully deductible. And the new personal CGT regime, less generous than the one it replaces, does not apply to super funds, which continue to enjoy a 10% effective CGT rate on assets held longer than twelve months (and nil in pension phase).
In short: if you want exposure to residential property, the most tax-effective wrapper is no longer your personal name. It is your SMSF.
That is not the same as saying every investor should rush to buy a property inside super. SMSF property carries its own set of considerations, including concentration risk, the cost and complexity of borrowing inside super, liquidity at retirement, and strict compliance obligations. These are not trivial. But for the right client, with the right asset and the right structure, the post-budget environment makes the case stronger than it has been in a long time.
If you are weighing up an investment property purchase, or you already own one and are wondering how the new rules interact with your broader plan, we would be happy to walk through it with you. Rivkin offers SMSF accounting and administration, financial planning, and wealth management under one roof, so we can look at the structural question and the investment question together.
A deeper note unpacking the implications is attached for those who want the full picture. To arrange a conversation, please book here.