September 2026 · Issue #6
You’re more protected than the 2027 tax headline said
There is a fresh round of coverage this month warning investors about a “capital gains valuation crunch” ahead of the 2027 tax changes. It is worth understanding — the changes are now law, not a proposal — but the headline leaves out the single most important part: if you already own the property, you are largely protected.
I went past the news write-ups and read the Treasury and ATO material directly, because secondary reporting on tax almost always skips the fine print — and here the fine print is the whole story.
What actually changes
From 1 July 2027, negative gearing on residential property is generally limited to newly built homes, and the 50% capital gains tax discount for individuals, trusts and partnerships is replaced with cost-base indexation plus a 30% minimum tax rate on gains.
The changes at a glance
| Start date | 1 July 2027 |
| Negative gearing limited to | new builds |
| 50% CGT discount | replaced |
| Replaced with | indexation + 30% min. |
| Announcement | 7:30pm, 12 May 2026 |
The part that gets left out: grandfathering
Any property you held before the announcement — 7:30pm AEST, 12 May 2026 — is exempt from the negative gearing changes, and can keep being negatively geared until you sell it. On capital gains, the new treatment applies only to gains that accrue after 1 July 2027; the growth your property has already banked keeps the more generous old 50% discount. Your family home isn’t touched at all.
If you bought before 12 May 2026, the scary headline almost certainly does not describe your situation.
So what’s the “valuation deadline” about?
Because the old rules apply to all the growth up to 1 July 2027, an independent valuation as at that date lets an existing owner lock in the value the more generous treatment applies to. That makes the valuation an opportunity, not a trap. It’s worth doing — calmly, with your accountant — not in a panic because a headline told you to. And be aware the biggest dollar figures in circulation come from valuation firms with a service to sell; the principle is sound, the scare is oversold.
The Redlands read
What I’d do if I owned an investment property here
First, check whether you’re even affected — if you’ve held since before 12 May 2026, you’re grandfathered on negative gearing and most of the anxiety simply doesn’t apply.
Second, don’t panic-sell or restructure ownership on the strength of a newsletter, including this one. Trusts, transfers and timing are exactly where a good accountant earns their fee.
Third, if you’re buying from here, asset quality matters more, not less — established homes on land in the tightly held Redlands pockets over volume new-build product.
None of the above is tax advice, and I’m not qualified to give it. It’s a summary of a legislated change and my read on how it lands locally. Take the specifics to your accountant.
Own an investment property in the Redlands? Happy to talk through where it sits — your accountant should be your next call after that.
What’s mine worth?
Greg Leigh — local Redlands specialist, Queensland Sotheby’s International Realty. Published 2 September 2026.
Sources: Australian Taxation Office, reforming negative gearing and capital gains tax; 2026–27 Budget tax factsheet. Valuation-deadline framing via Australian Broker (31 August 2026); note its dollar figures come from valuation firms and it does not mention the grandfathering provisions.