2026 Australian Budget AND Real Estate: THE EFFECTS ON YOU

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The 2026 Federal Budget included some major property-related announcements, particularly around negative gearing, capital gains tax, and housing supply.

For property owners, investors and buyers across North Lakes, Mango Hill, Kallangur, Griffin, Murrumba Downs, Deception Bay, Burpengary, Morayfield and the wider Brisbane North / Moreton Bay region, the changes could influence buyer demand, investor confidence and selling strategies over the coming years.

One of the biggest Budget announcements was a change to how negative gearing applies to residential investment property.

Under the announced reform, investors buying established residential properties after Budget night on 12 May 2026 will no longer be able to use rental losses to reduce their salary and wage income. Negative gearing benefits will generally remain available for newly built homes, and properties already held before Budget night are expected to be exempt from the new negative gearing rules. 

In simple terms, this may make some investors more cautious when buying established homes, townhouses and units.

For sellers, that does not mean the market stops. It may simply mean the buyer pool changes. Some properties that previously attracted strong investor interest may need to be marketed more carefully to first-home buyers, downsizers and owner-occupiers.

The Budget also announced changes to capital gains tax.

The Government has stated that it will replace the current 50% CGT discount with a system based on inflation, together with a minimum 30% tax on gains from 1 July 2027. These CGT reforms are expected to apply only to gains arising after 1 July 2027. Investors in new builds are expected to have the option of choosing between the existing 50% CGT discount and the new arrangements. 

For property investors, this makes tax advice more important than ever. Anyone considering buying, selling or holding an investment property should speak with their accountant or financial adviser before making decisions.

The Brisbane North and Moreton Bay markets are not one single market. Different property types may be affected in different ways.

Owner-occupier homes may remain well supported, particularly where buyers are motivated by lifestyle, schools, transport, location and limited supply.

Established investment properties may face more questions from investors around tax treatment, yield, cash flow and long-term strategy.

Entry-level homes and townhouses may attract stronger first-home buyer interest if investor competition softens in some price brackets.

New builds and newer townhouse developments may become more attractive to investors if tax settings favour new housing supply.

The Budget also includes a $2 billion Local Infrastructure Fund to help deliver roads, water, power, sewerage, drainage and other infrastructure needed to unlock more housing. The Government has said its housing and tax reforms are expected to support more Australians into home ownership over the decade. 

This type of funding may assist growth areas over time, but it is unlikely to solve housing supply issues immediately. In areas like Moreton Bay, infrastructure remains a key part of future housing delivery.

Not necessarily.

The right decision depends on the individual property, the loan structure, rent, ownership costs, tax position and future plans.

Some investors may decide to hold because rental demand remains strong. Others may review their portfolio and decide that selling an established investment property makes sense, particularly if the property is becoming expensive to hold or no longer fits their long-term strategy.

The key is not to panic. The key is to get proper advice and understand how the changes may apply to your situation.

If investor demand becomes more selective, the way a property is presented and marketed becomes even more important.

For some properties, the best buyer may still be an investor. For others, the better result may come from positioning the home toward first-home buyers, owner-occupiers or downsizers.

This is particularly important for tenanted properties. Presentation, access, tenant cooperation and the timing of vacant possession can all affect the final result.

If you own a property in North Lakes, Mango Hill, Kallangur, Griffin, Murrumba Downs, Deception Bay, Burpengary, Morayfield, Caboolture or surrounding suburbs, it may be worth getting an updated market appraisal.

At Blue Moon Property North Lakes, we can help you understand current buyer demand, likely sale price, marketing options and whether your property is more likely to appeal to investors, first-home buyers or owner-occupiers.

Contact Nigel Lucas at Blue Moon Property North Lakes on 0413 351 603 for a local market update or property appraisal.

This article is general information only and should not be taken as financial, legal or tax advice. Property owners and investors should speak with their accountant, financial adviser or solicitor before making decisions based on the 2026 Federal Budget.