Rental property deductions

Eligible interest, property management fees, council rates, insurance, repairs and other costs may be deductible while the property is rented or genuinely available for rent.

Negative gearing

From 1 July 2027, losses from established residential properties purchased after 12 May 2026 cannot be deducted against wages or other non-residential income. The losses may be used against residential property income or carried forward. Properties held before the cut-off and qualifying new builds receive different treatment.

Capital gains tax treatment

CGT rules change from 1 July 2027. The existing 50% discount will be replaced for gains accruing from that date by inflation-based indexation and a minimum 30% tax rate. Qualifying new builds may retain a choice between the two systems.

Affordable housing CGT discount

An additional CGT discount of up to 10% may be available when a qualifying property is provided as affordable rental housing under the required conditions.

State-based off-the-plan concessions

Some states offer investor-accessible duty concessions. Victoria’s temporary concession covers qualifying strata apartments, units and townhouses contracted before 21 April 2027, including purchases by investors, companies and trusts. Western Australia also offers concessions for eligible off-the-plan purchases contracted by 30 June 2028.

Build-to-rent concessions

Qualifying large-scale build-to-rent developments may receive land-tax or foreign-purchaser concessions in some states. These are generally designed for eligible developments rather than an ordinary single-property investor.