There has been renewed discussion in Canberra about possible tax reforms affecting property investors, particularly around the capital gains tax (CGT) discount and negative gearing. Under current rules, investors can claim a 50% CGT discount on assets held for more than 12 months, and can offset losses from any number of negatively geared properties against other income.

• CGT Discount: Treasury and policymakers are reportedly reviewing whether to reduce the 50% CGT discount, which could increase the taxable portion of capital gains for long-held assets. This is part of broader housing affordability and tax revenue discussions.
• Negative Gearing: There is speculation that limits could be considered to restrict negative gearing benefits to a smaller number of properties (e.g., two investment properties). This is being modelled internally but has not been adopted as formal policy.

At this stage, nothing has been legislated and details remain speculative. The outcomes will depend on what the Government includes in the upcoming Federal Budget and whether any proposals are agreed to by Parliament.

We will update you once the Budget details are confirmed.

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Posted on March 2, 2026 by Charisse Russell - Articles