From 1 July 2027, negative gearing on established property is gone. Here is what happens next.
 
Coleman Invest
The Freedom Brief
Private Letter from Ron Coleman  |  Week of 25 May 2026

Dear {{contact.first_name}},

This Week's Perspective

History is about to repeat itself.
Here is what happens next.

From 1 July 2027, negative gearing on established residential property is gone. Anything acquired after 7:30pm on 12 May 2026 falls under the new regime. Rental losses can no longer offset salary. The 50% CGT discount is replaced with cost-base indexation and a new 30% minimum tax. Existing investors are grandfathered. New builds are exempt.

We have seen this film before. Twice.

July 1985 · Australia

Hawke quarantined negative gearing. Sydney and Perth rents surged. Reversed by September 1987. It barely lasted two years.

October 2021 · New Zealand

New Zealand phased out interest deductibility. Rents climbed. National reversed it. Fully restored by April 2025. It did not survive a single political cycle.

The mechanism never changes. Investors run the numbers. Numbers stop working. Stock leaves the rental pool. Vacancy compresses. Tenants compete for what is left. Rents rise.

Treasury will argue new-build incentives offset all of this. The 1985 and 2021 evidence says the supply lag is years and the rent response is months.

The Bottom Line
“The right asset pays for itself in any tax regime. That is where freedom is built.”

I have never focused on the strategy of negative gearing. Cashflow first, always. The asset pays for itself.

If your strategy needed a tax loss to make the numbers work, the strategy was the problem. The question is the same as it always was — does the asset pay for itself?

If you want a second pair of eyes before the new regime kicks in, the booking link is below.

An Asset That Still Works

Dual income. Brand new.

Regional Victoria  ·  House & land

Lot 103, Palomino Estate, Armstrong Creek
Package Price
$969,990
Land $435,000  ·  House $534,990
 
Forecast Gross Yield
5.65%
Forecast, gross of holding costs
 
Forecast Combined Rent
$1,050 p.w.
House $600  ·  Flat $450
 
Structure
4 Bed + 2 Bed
Main 159.58 m²  ·  Flat 59.53 m²  ·  Land 455 m²
Enquire About This Property  →
Recommendations This Week

Dual income. Brand new.

Regional Victoria  ·  House & land

The Range Estate, Morwell, VIC
Package Price
$804,990
Land $270,000  ·  House $534,990
 
Forecast Gross Yield
6.6%
Forecast, gross of holding costs
 
Forecast Combined Rent
$1,020 p.w.
House $590  ·  Flat $430
 
Structure
4 Bed + 2 Bed
Main 159.58 m²  ·  Flat 59.53 m²  ·  Land 744 m²
Enquire About This Property  →
Recommendations This Week

Single-storey home. Brand new.

Regional Tasmania  ·  House & land

Single-storey home, regional Tasmania
Package Price
$617,925
Land $150,000  ·  Build $467,925
 
Forecast Gross Yield
5.04%
Forecast, gross of holding costs
 
Forecast Rent
$600 p.w.
Independent appraisal, Apr 2026
 
Structure
4 Bed · 2 Bath
House 156.26 m²  ·  Land 662 m²  ·  Single storey
Enquire About This Property  →

A second pair of eyes before the rules change.

Book A Confidential Portfolio Review  →
 

Because in the end, this was never really about property.

It is about freedom. Property is simply the vehicle — and while supply stays this far behind demand, it remains the most dependable one we have. Governments will keep changing the rules at the edges. The fundamentals underneath have not moved.

Bricks and mortar keep paying the income, building the equity and funding the life you actually want. The people who keep building quietly through the noise are the ones who end up free.

To your freedom,

Ron Coleman

 

Founder, Coleman Invest  ·  Adv Dip of Property Val.

Mobile: 0418 813 825
Website: www.colemaninvest.au

Ron Coleman
About Ron

After nearly three decades in real estate, Ron realised selling houses did not change lives. Building freedom did.

That is why Coleman Invest exists. Not to chase transactions — to help people build income, resilience and optionality.

Cash flow first. Freedom follows.

© 2026 Coleman Invest  |  Private Investment Office