Federal Budget changes: what they mean for property investors

The latest Federal Budget has put housing supply firmly back in focus - with changes designed to encourage more new homes to be built across Australia. For property investors, this marks a meaningful shift in how future investments may be approached, particularly when it comes to building new.

While every investor’s circumstances are different, understanding how these changes apply - and where new builds fit in - has never been more important.

A renewed focus on new housing supply

At the heart of the Budget is a clear message: increasing housing supply matters. To support this, investment settings have been reshaped to favour newly constructed residential properties, helping direct investment toward homes that add to the market - not just compete within it.

For investors considering their next move, this places eligible new builds firmly in the spotlight.

What’s changed for property investors?

Here’s a clearer look at the key updates and what they may mean in practice.

Negative gearing: now focused on new builds

Negative gearing has now been restricted to newly constructed residential properties. This change is intended to encourage investment in new housing supply and support long term growth where it’s needed most.

• Existing properties purchased before 7:30pm on 12 May are grandfathered, meaning negative gearing arrangements can remain in place.
• Future investments, however, will only be able to access negative gearing if the property is an eligible new build, not an established home.

For investors planning ahead, this makes the type of property more important than ever.

Capital Gains Tax (CGT): a new approach, with flexibility for new builds

The long standing 50% CGT discount is being replaced with a new system based on:

• An inflation indexed cost base, and
• A minimum 30% tax on real gains

Importantly for investors building new, eligible new builds will be able to choose between the old discount method or the new indexed approach, offering greater flexibility depending on individual circumstances.

• Properties owned or under contract before 7:30pm on 12 May will continue under the existing CGT system until 1 July 2027, before transitioning to the indexed model.
• New builds may also continue to access full depreciation schedules, which can play a role in long term investment planning.

As always, independent financial and tax advice is essential to understand how these options apply to you.

Why new builds matter more than ever

With these changes, new homes aren’t just part of the housing conversation - they’re central to it. For investors, building new may offer:

• Access to updated tax and negative gearing settings
• Depreciation Advantages
• Homes designed for modern living and tenant appeal
• A way to invest while contributing to much needed housing supply

The key is making informed decisions early, with clarity around eligibility, timing and structure.

Building with experience on your side

At Rawson Homes, we’ve been supporting property investors for more than 45 years. We’ve seen policies change and markets evolve - and we know that successful investments aren’t built on assumptions, but on understanding and preparation.

When you build with Rawson Homes, we’ll work with you to:

• Understand how current market conditions and policy changes may influence your investment decisions
• Guide you through a clear, straightforward building process, backed by experience and care
• Connect you with our trusted finance partner, Mortgage Advice Bureau (MAB), and support you in seeking independent financial and tax advice

Because building an investment home isn’t just about the build - it’s about starting with the right information and the right people around you.

Homes designed with long term value in mind

From House & Land packages to homes and townhomes - available now or currently under construction (ready built) - our investor friendly options are designed with quality, liveability and longevity at their core.

It’s about creating homes that stand the test of time, for both investors and the people who live in them.

Looking ahead

The Federal Budget has reshaped the investment landscape, placing greater emphasis on eligible new builds. For investors, that means opportunity - when paired with clear advice and a builder who understands the journey.

With 45 years’ experience, we’ll guide you through every step, helping you make confident, informed decisions from the very beginning.

Explore our investor home options with Rawson Homes today.

DISCLAIMER: Rawson Homes does not provide financial or credit advice. Eligibility for Government Schemes depends on individual circumstances and assessment by the relevant authorities and lenders. Any engagement between customers and Mortgage Advice Bureau is independent of Rawson Homes and Rawson Homes does not assume responsibility for the services or advice provided by Mortgage Advice Bureau.