Albanese Locks In CGT and Negative Gearing Reform Bill Date — What Property Investors and Borrowers Need to Know

What's Happening

Prime Minister Anthony Albanese has confirmed the parliamentary date for the government's housing-focused tax overhaul, which proposes significant changes to both Capital Gains Tax (CGT) concessions and negative gearing rules. Crucially, Albanese signalled that carve-outs could extend beyond tech startups — a detail that may reshape how the reforms affect a broader range of property investors.

The reforms, first flagged in the 2026–27 Federal Budget, aim to limit negative gearing to newly constructed properties and reduce the CGT discount from 50% to 25% for assets held beyond 12 months.

Why the Bill Date Matters

Confirming a legislative timeline introduces certainty — and urgency — for property investors and their finance strategies. Key implications:

• Borrowing capacity modelling: Lenders assess rental income as part of serviceability calculations. If negative gearing deductions are capped to new builds, the income offset on existing investment properties may be reduced.
• Portfolio restructuring: Investors holding existing properties with negatively geared positions may need to reassess strategy before the bill takes effect.
• Loan structuring: Interest-only loans maximise negative gearing benefits. If tax treatment changes, the case for IO vs P&I structures shifts.

Potential Carve-Outs: What We Know

Albanese's signal that carve-outs may go beyond tech startups suggests the government is open to industry lobbying. Property Council of Australia and HIA have already pushed back against reforms that could dampen new housing supply. Any carve-out for small business owners or specific asset classes could significantly alter the bill's impact on self-employed investors.

What Non-Bank Lenders Are Watching

According to APRA data, investment lending has remained robust in early 2026, with non-bank lenders capturing a growing share of investor finance. The bill's timing matters because lenders will need to update serviceability calculators once the legislative text is finalised.

Non-bank lenders, which operate outside APRA's serviceability buffer rules, often provide more flexibility for investors whose income structures don't fit bank templates — including self-employed borrowers who rely on BAS statements or accountant letters.

MPFG Perspective

At MPFG Capital, we work closely with self-employed property investors under Alt Doc arrangements. Tax law changes don't alter the fundamental need to finance property — they reshape how deals are structured.

If you hold negatively geared investment properties or are planning to expand your portfolio before the reforms pass, now is the time to review your loan structure.

What to Do Now

1. Speak to your accountant about whether existing negative gearing positions are at risk
2. Review loan structures — does your IO arrangement still make sense under proposed CGT changes?
3. Consider new builds — if new construction carve-outs are preserved, off-the-plan may remain tax-advantaged
4. Contact MPFG if you need flexible Alt Doc or commercial finance before the bill passes

This article is for general information only and does not constitute financial or tax advice. Consult a licensed financial adviser or accountant for advice specific to your situation.