What is Property Category for Tax Purposes?
Quick definition
Whether a property is treated as an established property or an eligible new build under the proposed 2026–27 Budget negative gearing reforms.
Overview
Under the announced 2026–27 Budget measures, the tax treatment of investment properties may differ depending on property type.
Established residential properties purchased after 7:30pm AEST on 12 May 2026 may no longer allow rental losses to be offset against salary income from 1 July 2027.
Eligible new builds may continue to receive existing negative gearing treatment and the 50% CGT discount.
Eligible new builds may include off-the-plan apartments, new construction on vacant land, supply-adding knock-down rebuilds, and newly built homes sold within 12 months of first occupation.
These measures are proposed and subject to legislation.
Why it matters
- The property category directly affects whether rental losses can be offset against other income or must be carried forward.
- Investors in eligible new builds may retain more favourable tax treatment under the proposed reforms.