The Rules Just Changed. Here's Why That's Good.
What every Australian property investor needs to know about the 2026 budget tax changes, and why Custodian clients have nothing to fear. Backed by 27 years of data, not headlines.
No email required · Free to download · May 2026
Here's Why That's Good.
- Exactly what the 2026 budget changed, explained in plain English
- Grandfathering explained for existing investors
- Why new builds are now the most tax-advantaged asset class
- The supply numbers that most investors missed
- FAQs on negative gearing, CGT, SMSF and more
What the 2026 Budget Actually Changed.
Two structural changes. Both take effect from 1 July 2027. Here's what they cover, and just as importantly, what they leave completely untouched.
Established Properties Only
From 1 July 2027, investors buying established residential properties after 12 May 2026 (7:30pm AEST) can no longer use rental losses to reduce other taxable income. Those losses still carry forward to offset future residential property income, including capital gains.
New builds are fully exempt. Negative gearing on new construction continues exactly as it does today, before and after 1 July 2027, with no end date. This is explicit policy design, not a loophole.
The 50% Discount Replaced
From 1 July 2027, the 50% CGT discount is replaced with CPI cost base indexation and a 30% minimum tax rate on capital gains. This applies only to gains accruing from 1 July 2027. It does not apply to growth already built up in your portfolio.
New build investors get a choice: when you sell, you can use either the 50% CGT discount or the new CPI indexation method, whichever produces the better outcome for you.
Why This Strengthens Our Strategy, Not Weakens It.
The 7 Steps Strategy was built around new builds with large land content. Not because of any tax benefit. Because land appreciating over time is what builds wealth. The tax changes simply reinforce what we've always known to be true.
New construction is now the only asset class where a new investor can access the full negative gearing benefit. That changes the demand dynamics considerably. If you're already holding new builds, that's working in your favour.
"Land appreciates. Buildings depreciate. When you understand that, you understand why we've always sought out the largest blocks in the fastest-growing corridors. That hasn't changed. That will never change."
John L. Fitzgerald, Founder, Custodian. Author, 7 Steps to Wealth- New builds retain full negative gearing before and after 1 July 2027
- Depreciation schedules on new builds remain unchanged and are substantial
- CGT implications are offset by longer hold periods and compound growth
- Investor demand is moving toward new builds, propping up values
- The land-to-building ratio remains the primary driver of long-term growth
- The Mortgage Reduction Strategy is entirely unaffected by these changes
- SMSF structures are explicitly excluded from both changes
The Figures Most People Missed.
When the budget dropped, the conversation jumped straight to negative gearing. The supply numbers that actually explain where property prices are heading got buried in the noise.
"What it means is that the underlying conditions for property value growth remain firmly intact. The market doesn't wait for certainty. It rewards those who act while others are still reading the headlines."
James Fitzgerald, Managing Director, CustodianEverything You Need to Know. In One Document.
The whitepaper walks you through every change, what it means in plain terms, and why, if you're following the 7 Steps Strategy, you're in a genuinely strong position heading into the next five years.
No registration. No email required. Just clarity.
- The two budget changes explained clearly, without jargon
- Grandfathering rules for existing investors
- Why new builds are now the most tax-advantaged asset class in Australia
- The supply shortage data that changes the picture entirely
- Frequently asked questions: negative gearing, CGT, SMSF, first home buyers
- Custodian's position on what to do now
Here's Why That's Good.
Every Client Is Protected. In Writing.
The strategy is only as good as the commitment behind it. Here's what Custodian puts in writing for every client.
Fixed Cost Guarantee
The price quoted is the price you pay. No variations. No hidden costs at handover. Not one client has ever paid a dollar over their contract price.
Fixed Build Time Guarantee
A completion date committed to in writing. If the build runs long, you're compensated. The timeline is a promise, not an estimate.
Tenant Gap Cover
If the build sits vacant in the first 12 months, Custodian pays 75% of market rent personally until a tenant is secured. That cashflow guarantee is in writing.
Hear It Direct From the Team.
James Fitzgerald walks through the 2026 tax changes, what they mean in practice, and why the fundamentals of the 7 Steps Strategy remain exactly where they've always been.
The window is open. It's narrowing.
Those who move on a new build now lock in the best tax position available under the new rules. Download the whitepaper for the full picture, or book a free 15-minute strategy call to talk through your specific situation.