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

The measures modelled here are law. The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 and the accompanying Income Tax Rates Amendment (Tax Reform No. 1) Act 2026 received Royal Assent on 26 June 2026 (Acts 49 and 50 of 2026). They were introduced on 28 May 2026 and passed the Senate on 25 June 2026.

Current law still applies until 1 July 2027. The negative gearing and CGT changes commence on that date. Nothing changes for the 2026–27 income year.

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.

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. That instrument has not been made. Until it exists, the market value election is the only path that can be modelled properly.

2. ATO valuation guidance. If you take the market value election, the ATO's expectations about what counts as an acceptable valuation at 1 July 2027 have not been published.

3. New residential dwelling criteria. The definition that determines which properties get the more generous new-build treatment is not fully settled.

4. A second technical bill. Further legislation dealing with discretionary trust carve-outs is expected. 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. That is the only thing we use it for.

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 changes. 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.

What gets you in under the old rules. A contract exchanged before 10 August 2026. Settlement can happen 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 current law, hold for more than 12 months and only half the profit is taxed.

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.

Enacted law, commencing in the future. The calculators and explanations on this site model the Treasury Laws Amendment (Tax Reform No. 1) Act 2026 and the Income Tax Rates Amendment (Tax Reform No. 1) Act 2026, which received Royal Assent on 26 June 2026. The measures commence on 1 July 2027, and current tax law continues to apply until then. Parts of the regime depend on subordinate legislation and administrative guidance that did not exist as at 3 August 2026, including the Ministerial apportionment instrument and ATO valuation guidance; those are identified on the page and are not modelled as settled. Further amending legislation is expected. 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.

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Last updated: 3 August 2026

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Last updated: 3 August 2026