Negative Gearing — What Happens If It Changes?

By Grant Abbott · 29 April 2026 · 1 min read

I’ve been in tax since 1982 — and negative gearing has always been part of the system.

At its core, it’s simple:

Borrow to buy an income-producing asset.

If your costs (mainly interest) are higher than the income — you make a tax loss.

That loss can offset other income.

That’s why it’s been so popular with property investors.

But here’s the thing…

Governments have tried to change it before.

Back in the 80s, when they limited negative gearing:

• Investors sold

• Rental supply dropped

• Rents increased sharply Now we’re hearing similar discussions again.

The key issue isn’t just “change” — it’s HOW.

• Immediate removal?

• Transitional rules?

• Grandfathering?

Each one leads to very different outcomes.

And don’t forget — this may not just be about property.

Shares and crypto could also be in scope.

Each option changes the market.

We’ll know more after the May Budget.

Join us on the Post Budget webinar for a full breakdown.

Live: Wednesday 13 May | 1:00 PM AEST

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