The Government’s changes to negative gearing for residential property have now become law. From 1 July 2027, rental losses from many established residential properties acquired after Budget night will no longer be immediately deductible against salary, business income or other investment income. Instead, affected rental losses will generally be quarantined and carried forward for use against certain residential property income or gains. The changes may significantly affect the cash flow and...

The Government’s significant changes to Australia’s capital gains tax rules have now become law. From 1 July 2027, the existing 50% capital gains tax discount will generally be replaced with an inflation-based indexation system for individuals, trusts and partnerships. A new minimum tax rate of 30% will also apply to certain capital gains made by individuals. These changes may significantly affect the tax payable when selling investment properties, shares, businesses and other appreciating...

The ATO has sharpened its focus on holiday homes and short-stay rental properties, particularly where owners are claiming deductions while also using the property themselves. With the rise of Airbnb and other short-term accommodation platforms, more property owners are earning income from properties that are not traditional long-term rentals. In response, the ATO has released new guidance aimed at clarifying when income must be declared and when deductions can be claimed. The message is...