> For the complete documentation index, see [llms.txt](https://docs.scaleconnect.com.au/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.scaleconnect.com.au/articles/market-and-lending/fy27-tax-changes-what-the-budget-means-for-property-held-in-trusts.md).

# FY27 tax changes: what Treasury announced for property investors

{% @scale-docs-page-title/page-title title="FY27 tax changes: what Treasury announced for property investors" %}

{% hint style="info" %}
Treasury's Budget announcements distinguish existing holdings, future purchases and new builds. Check the dates and exceptions with the client's tax adviser before drawing conclusions about their property plan.
{% endhint %}

*Scale · 19 October 2026 · Market & lending*

## Capital gains tax

Treasury's published plan replaces the 50% CGT discount for individuals, trusts and partnerships with cost-base indexation and a 30% minimum tax on real capital gains accruing from **1 July 2027**. The transition matters: gains accrued before that date retain the earlier treatment described in the explainer. Eligible new builds have a choice of the existing discount or the new arrangements. [Read the Budget's CGT explainer.](https://budget.gov.au/content/factsheets/download/tax-explainers-negative-gearing-capital-gains-tax.pdf)

## Negative gearing

The announced restrictions start on **1 July 2027**, but properties held before **7:30pm AEST on 12 May 2026** are exempt. For affected established residential properties bought after announcement, losses can offset residential-property income, including capital gains, and excess losses can be carried forward; they cannot offset wages. New builds retain access to negative gearing under the announced arrangements. [Read Treasury's summary.](https://treasury.gov.au/policy-topics/taxation/budget2026-27)

## Discretionary trusts

Treasury also describes a **30% minimum tax rate for discretionary trusts from 1 July 2028**, with exceptions, and restructuring rollover relief for three years from 1 July 2027. [Read Treasury's trust-tax summary.](https://treasury.gov.au/policy-topics/taxation/budget2026-27)

## Questions for the client review

Bring the client's adviser into the conversation with the facts that determine their position:

* The ownership entity and its structure.
* The acquisition or contract date.
* Whether the property meets the relevant new-build criteria.
* The period in which gains accrued and the anticipated sale date.
* Rental income, losses and the other income against which deductions are being considered.

This article summarises the published announcements. It does not establish their current legislative status or a particular client's tax treatment. Check the latest legislation, ATO guidance and professional advice before taking action.

## Use the simulator carefully

Record the assumptions used in a scenario and compare alternatives in separate strategies. A simulator result does not itself confirm that every announced reform or exception is implemented.

See [Model Assumptions](https://docs.scaleconnect.com.au/scaleconnect-docs/simulator/model-assumptions) for reviewing inputs and [Compare Strategies](https://docs.scaleconnect.com.au/scaleconnect-docs/simulator/clone-and-compare) for comparing scenarios. Ask the ScaleConnect team to confirm any specific calculation before relying on it.

*Sources checked 19 October 2026:* [*Treasury, Budget 2026–27 tax system changes*](https://treasury.gov.au/policy-topics/taxation/budget2026-27)*;* [*Budget 2026–27, Negative Gearing and Capital Gains Tax Reform*](https://budget.gov.au/content/factsheets/download/tax-explainers-negative-gearing-capital-gains-tax.pdf)*.*


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