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The 2025 federal budget landed with real consequences for property investors. Here is a plain-English breakdown of the four things that matter most — and what they mean for investors on the Gold Coast and across southeast Queensland.
This article is general in nature and does not constitute financial, tax, or legal advice. Please seek advice from a qualified professional before making any investment decisions.
01
From budget night, losses on established investment properties can no longer be offset against your wage income. For new buyers, the immediate annual tax relief is gone.
But the deduction does not disappear. It carries forward and reduces your capital gain when you eventually sell. The cash flow impact is real. The permanent loss is not.
Already own investment property? Already signed a contract? You are grandfathered under the current rules. Nothing changes for you.
New residential builds — houses and apartments — are fully exempt from the changes. The government has explicitly pointed every new investor in Australia toward new residential construction. If you are considering your next acquisition, this distinction is now one of the most important factors in your decision.
02
The 50% capital gains tax discount is scrapped from 1 July 2027. This applies to both residential and commercial property.
Key date: 30 June 2027
Any asset settled before that date is still assessed under the old rules. After that date, you pay tax on the full nominal gain. If you are sitting on a long-held property and weighing up a sale, that window deserves serious attention now. 2027 may feel like a comfortable distance — it is not, once you factor in marketing, settlement periods, and planning around the proceeds.
03
This is the one most likely to catch people off guard, and it deserves more attention than it is currently receiving.
From 1 July 2028, a 30% minimum tax applies to all income derived from discretionary trusts. The income-splitting strategy — distributing income to lower-taxed beneficiaries to reduce the overall tax burden — is effectively eliminated.
The restructuring window of 2027–2030 sounds generous. It is not. If your property is held in a family trust, the conversation with your accountant needs to happen this year.
04
Super was left entirely alone. SMSFs are explicitly exempt from the negative gearing changes. Capital gains tax inside an SMSF remains at 10% in accumulation phase — and zero in pension phase.
In a landscape where the tax treatment of established property in personal names and trusts has become less favourable, superannuation now stands as the most structurally advantaged vehicle in the room. If you have been considering holding property inside your SMSF, this budget has meaningfully shifted that conversation.
Speak with your financial adviser about whether an SMSF property strategy is appropriate for your circumstances.
LOCAL READ
There is nothing in this budget specifically for our market. No infrastructure spend. No local housing initiative. The Gold Coast gets the national framework — the same as everywhere else — but no targeted support.
For one of the fastest-growing markets in the country, that is a notable gap. We will be watching the Queensland state budget closely.
New builds win. Established investors face a cash flow shift. Family trusts need urgent attention. Super holders are largely spared.
If you are thinking about selling before the CGT window closes — or you want to make sure your structure is working as hard as possible before the rules change — talk to us now.
Steve Clark 0400 338 434 | info@clarkproperty.net.au
