From the Desk of the Chief Economist
The Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 was introduced by the Treasurer into the House of Representatives. The bill is part of the Government’s tax reform package concerning Negative Gearing and Capital Gains Tax announced in the 2026-2027 Federal Budget. Further to this, The Greens negotiated amendments to the Bill, addressing Limited Recourse Borrowing Arrangements (LRBAs) by superannuation funds (SMSF) for purchasing residential property.
The intricacies of property investment, especially negative gearing and capital gains tax, are a known “comfort” for many investors; a practice as old as time. The Federal Budget 2026-2027 shook this comfort, proposing several changes to the tax landscape attached to property investment.
On Thursday 25 June, these proposals, under the Treasury Laws Amendment (Tax Reforms No. 1) Bill 2026, were officially passed by both houses of parliament, making it a legislative instrument.
What are these changes? And how might it impact the property market?
To read Dr Mardiasmo's full remarks on the upcoming property investment changes and what they could mean for the property market, please view the flipbook or download the report below.
