The rules are law now. See what they cost you.

The measures modelled are in the Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (Act No. 49 of 2026), which passed both houses on 25 June 2026 and received Royal Assent on 26 June 2026. The CGT and negative gearing changes apply from 1 July 2027, so current law, including the 50% discount, keeps applying to sales before then.

Important: some of the operating detail is not settled yet, and is listed under "What we are watching" below. Where a detail is still open, this site says so rather than guessing.

Latest (22 September 2026): the Senate amended the bill before passage. The exemption from the 30% minimum tax for people on income support was written into the Act rather than left to a ministerial instrument, the small business 50% active asset reduction was opened to businesses with turnover up to $10 million (previously $2 million), and a new schedule restricted SMSF borrowing for real property from 10 August 2026. On 3 August 2026 Treasury released the second tranche for consultation, which closed on 21 August 2026: the definition of a new residential dwelling, transfers on death and relationship breakdown, a main residence that is rented out for the first time, trusts, and a draft formula for splitting a gain between the old and new rules. The next bill, Treasury Laws Amendment (Tax Reform No. 3) Bill 2026, had not been introduced to Parliament at the time of this update. We update this site as each piece lands.

These are law-adjacent details that are not finalised. They can change the numbers above. We do not model anything in this list as if it were settled.

1. The apportionment legislative instrument. The Act lets the Minister determine, by legislative instrument, how a gain is apportioned between the period before and after 1 July 2027 for assets you already own. Treasury released the draft Income Tax Assessment (Method for Apportioning Capital Gains and Capital Losses) Determination 2026 on 3 August 2026 and consultation closed on 21 August 2026. The determination had not been registered as at 22 September 2026. Calculator 3 can model the draft formula, but it is a draft, and the market value default remains the safer assumption.

2. ATO valuation guidance and tools. If you use market value, the ATO's existing guidance on market valuations for tax purposes applies. Treasury says the ATO is preparing guidance and tools for the 30 June 2027 value. Not published as at 22 September 2026.

3. New residential dwelling criteria. The definition that determines which properties get the more generous new-build treatment is still in draft. Treasury released a proposed definition on 3 August 2026, alongside proposed negative gearing exemptions for affordable, social, NDIS, public and build-to-rent housing.

4. The next bill. Treasury Laws Amendment (Tax Reform No. 3) Bill 2026 covers transfers on death and relationship breakdown, a main residence first rented out, trusts and AMITs, part-year residents and deferred gains. It was released as an exposure draft on 3 August 2026 and had not been introduced to Parliament as at 22 September 2026. It may affect how these rules apply to property held in a trust.

If you want to know when any of these land, there is an email list further down the page.

This change sits in the same Act as the negative gearing and CGT reforms (Schedule 5), but it commenced much sooner and independently of them.

What changed. From 10 August 2026, a self managed super fund can no longer enter a new limited recourse borrowing arrangement (an LRBA, the structure SMSFs use to borrow) to acquire residential property. Schedule 5 of the Act inserted s67A(2)(c) into the SIS Act, requiring that where an LRBA asset is real property it must be business real property.

What gets you in under the old rules. A binding contract exchanged before 10 August 2026. Finance and settlement can occur after that date.

What is not affected. Existing LRBAs are grandfathered in full: no forced sale and no restructure required. Refinancing an existing SMSF property loan is still permitted. Borrowing to acquire qualifying business real property (commercial premises) is unaffected, subject to the usual superannuation rules.

The longer read. The business real property test and its edge cases, including the farm homestead that still passes and the shop with a flat above that now fails, are covered in our full article on the SMSF borrowing change.

This is general information, not financial or tax advice, and SMSF decisions in particular should go through a licensed adviser and your fund's accountant before you act.

Grandfathered: the old rules keep applying to you, because you owned (or had a contract on) the property before the change was announced.

Negative gearing: when a rental property's costs are bigger than its rent, and that loss reduces the tax on your other income, like your salary.

Quarantined losses: losses you can't use against your salary now, but can bank and use against future rental profits or property gains.

Cost base: what the property really cost you: purchase price plus buying costs like stamp duty and legal fees.

Capital gains tax (CGT): the tax on your profit when you sell.

50% CGT discount: under the rules that apply until 30 June 2027, hold for more than 12 months and only half the profit is taxed.

Deemed sale: the Act treats property you hold on 30 June 2027 as sold and bought back at that date, so the old and new rules each get their own slice of the gain. Nothing is payable at that point. It is a calculation, not a transaction.

Indexation: adjusting your cost base upward for inflation, so you're only taxed on gains above inflation.

Marginal tax rate: the rate on your last dollar of income; rates on this site include the 2% Medicare levy.

Split treatment: for properties owned before the changes, profit built up before 1 July 2027 is taxed the old way and profit after that date the new way.

General information only. The content and calculators on this website are provided for general information and education. Nothing on this site constitutes tax, legal, accounting or financial product advice, and none of it takes into account your objectives, financial situation or needs.

We are not advisers. Property Tax Compass is not a registered tax agent, licensed financial adviser, credit licensee or law firm. Before making any decision about property, tax or investment, obtain advice from a registered tax agent (you can check registration at tpb.gov.au) or an appropriately licensed financial adviser.

Law, with details still in draft. The calculators model the Treasury Laws Amendment (Tax Reform No. 1) Act 2026 as passed, plus Treasury's draft second-tranche legislation and draft apportioning formula released for consultation on 3 August 2026. Draft material can change before it becomes law, and ATO guidance and tools are still to come. The CGT and negative gearing changes apply from 1 July 2027; current law applies until then. We update the site as the position develops, but we cannot guarantee the information reflects the latest position at the moment you read it.

Calculator results are estimates. All calculator outputs are illustrative estimates based on the stated assumptions and the figures you enter. They simplify complex rules. The tax rates used include the 2% Medicare levy, but the calculators exclude factors that may apply to you, such as the Medicare levy surcharge, tax offsets, Division 293 tax, capital losses, depreciation schedule specifics, state taxes and transaction costs. Results must not be relied on as a prediction of your actual tax outcome.

Limitation of liability. To the maximum extent permitted by law, Property Tax Compass excludes all liability for any loss or damage arising from reliance on the information or calculators on this site. Nothing in this disclaimer excludes rights that cannot be excluded under the Australian Consumer Law.

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Last updated: 22 September 2026

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