Latest News About Negative Gearing In Australia

Here’s a concise update on the latest news about negative gearing in Australia.

• What it is: Negative gearing lets property investors deduct losses from rental properties against their other income, reducing taxable income. This policy remains highly debated in Australia as a lever to influence housing affordability and investment dynamics.[5]

• Recent developments: In late 2024 and early 2025, senior government figures indicated Treasury was preparing modelling and options related to negative gearing and the capital gains tax (CGT) discount, though public signals varied about whether changes would be pursued before the next election. The government repeatedly stated its priority was housing supply and affordability, with some officials suggesting reforms were unlikely in the near term, while others noted the policy was under review as part of broader housing policy discussions.[1][8][5]

• Political context: Changes to negative gearing are politically sensitive due to the large base of property investors who could be affected. Debates have centered on potential reforms like restricting negative gearing to new properties or reducing the CGT discount, with estimates suggesting substantial revenue potential under certain reform scenarios, though political voices across parties have differed on feasibility and timing.[4][1][5]

• Current status (as of early 2026): There isn’t a clear, definitive policy shift announced nationwide. Media coverage continues to discuss possibilities and modelling from Treasury, but official proposals or legislative changes have not been enacted, and parties have varied in their public stance on whether reforms will occur ahead of or after the next elections.[3][7]

• Practical implications: For property investors, potential reforms could affect after-tax returns and property market dynamics; for renters and first-home buyers, reforms could influence housing supply and affordability indirectly. Analysts caution that modelling outcomes depend on the exact design of any reform and the broader economic context.[8][5]

Illustrative example

• If a reform restricted negative gearing to new builds only, existing negatively geared properties would be grandfathered, while new investments could still benefit during the initial period, potentially shifting investment choices but limiting immediate market disruption. This is one of the reform concepts discussed in policy debates.[1]

Would you like me to pull the most recent official statements or provide a quick timeline of proposed reform options and their estimated fiscal impacts? I can also summarize what different parties and think tanks have proposed, with sources.