The Budget changes are designed to move investor demand toward new housing supply. This means more focus on new builds, land, house and land packages, dual income homes and growth areas. Established homes may still stay strong because land and construction costs are rising, and first home buyers may look for more affordable existing properties.

1. Negative Gearing Changes

• From 1 July 2027, full negative gearing benefits will mainly apply to new builds.
• Investors buying established homes after Budget night can still deduct losses against property income and carry forward unused losses, but not directly against wages.
• Existing investors are grandfathered under the current rules.

2. Capital Gains Tax (CGT) Changes

• The 50% CGT discount will move to an inflation-based system, with a minimum 30% tax on gains from 1 July 2027.
• Because new builds can still choose the 50% CGT discount on the new rules, many investors may focus more on new construction.
• This may increase demand for new homes, land, duplexes, townhouses and project stock.

3. Trust Tax Changes

• From 1 July 2028, many discretionary trusts will face a minimum 30% tax rate, with some exceptions.
• The aim is to reduce aggressive income splitting. Investors using family trusts should get tax advice.

4. First-Home Buyers & Established Homes

• The Budget expects the tax changes to support more home ownership over time.
• However, land and construction prices are going higher, so some buyers may prefer established homes.
• This can support existing property prices and create stronger first-home buyer activity in affordable suburbs.

5. South West Sydney Market Impact

• New development areas such as Leppington, Austral, Oran Park, Edmondson Park, Campbelltown, Macarthur and nearby growth corridors may benefit.
• Sydney South West may be a better option for developers, builders and investors because of land supply, new estates and infrastructure.
• The Budget includes housing infrastructure support to help unlock more homes and make land ready for new housing.

6. Key Opportunities for Multi Dynamic Agents

• Focus areas: land sales, new builds, house-and-land packages, dual-income homes, granny flats, duplexes, townhouses and project marketing.
• Educate investors on new-build tax advantages, but remind them to seek tax advice.
• Help first-home buyers compare established homes versus new homes based on price, grants, location and future growth.
• Use market appraisals, buyer education, investor seminars and project stock updates to create more client conversations.

7. Risks & Challenges

• Some investors may pause or delay decisions due to tax changes.
• Resale activity may be lower if investors prefer new builds.
• Higher construction costs may affect affordability and project timelines.
• Rental supply may stay tight, which could place pressure on rents.

8. Other Budget Measures to Note

• Tax cuts from 1 July 2026 and 1 July 2027 may improve household cash flow.
• The $250 Working Australians Tax Offset from 2027-28 and the $1,000 instant tax deduction may help workers keep more income.
• The $20,000 instant asset write-off for small business can help agencies, tradies and small property businesses with cash flow.
• The ban on foreign buyers purchasing established homes has been extended until mid-2029, which may support local buyers.

Conclusion

The Budget is not anti-property. It redirects investment toward new housing supply. For Multi Dynamic Pty. Ltd., the best opportunities are likely in South West Sydney growth areas, new developments, land sales, dual-income properties and project stock, while established homes may also remain attractive for first-home buyers and affordability-focused purchasers.

Prepared for internal team discussion, client education and general information only - clients should seek independent tax/financial advice.

Multi Dynamic Pty. Ltd. - Your Property Partner

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