June 5, 2026

Federal Budget Changes: Why New Builds Remain a Smart Investment Choice

The Australian Federal Budget has introduced significant changes to property investment rules, reshaping the landscape for investors across the country.

While the proposed reforms reduce some of the tax advantages traditionally associated with established investment properties, new residential builds continue to offer attractive benefits, making them an increasingly appealing option for investors looking to grow their property portfolio.

What Has Changed?

Under the Federal Government’s proposed reforms, negative gearing for residential property will be largely limited to new builds from 1 July 2027. Investors purchasing established properties after the Budget announcement (7:30pm AEST 12 May 2026) will face restrictions on how investment losses can be claimed against their taxable income. In addition, changes to Capital Gains Tax (CGT) arrangements are expected to impact the long-term returns of some property investments. (https://budget.gov.au/content/04-tax-reform.htm )

These property investment tax changes are expected to influence how Australians approach future investment decisions. Importantly, new builds remain eligible for existing negative gearing benefits, and investors in qualifying new homes will continue to have access to favourable CGT treatment. (https://budget.gov.au/content/04-tax-reform.htm )

Why Investors Are Turning to New Builds

With tax incentives now focused on increasing Australia’s housing supply, new homes are positioned to become a key investment strategy for many Australians.

For those considering new build investment opportunities, the benefits can include:

• Continued access to negative gearing benefits.
• Potential CGT advantages compared to established properties.
• Depreciation benefits on new fixtures and fittings.
• Strong tenant appeal with modern layouts, energy-efficient features and low maintenance requirements.
• The opportunity to invest in growing communities with strong long-term demand.

As government policy increasingly encourages the construction of new housing, investors may find greater value in purchasing newly built homes rather than competing for established properties.

House and Land Packages in High-Growth Locations

At Kaplan Homes, we offer a range of quality house and land packages across some of the most sought-after growth corridors, including Greater Sydney and the Southern Highlands.

These locations continue to attract strong demand from both homeowners and tenants thanks to improving infrastructure, lifestyle benefits and growing employment opportunities.

Whether you’re a first-time investor or looking to expand your portfolio, a new home can provide a compelling combination of rental demand, lifestyle appeal and investment potential, particularly in light of the upcoming negative gearing 2027 reforms.

Why Now Is the Time to Act

With the property investment landscape changing, many investors are reassessing their strategies and exploring opportunities that align with the new rules.

The proposed property investment tax changes continue to favour new housing supply, making new builds one of the few residential investment options expected to retain key tax advantages under the negative gearing 2027 reforms. For investors considering their next move, acting sooner rather than later may provide access to a wider range of land releases and home designs in premium locations.

Explore Your Investment Options

Kaplan Homes offers a range of thoughtfully designed house and land packages across Greater Sydney and the Southern Highlands, helping investors secure quality homes in thriving communities.

Speak with our team today to discover how a new Kaplan Home could help you build your investment future.

Disclaimer: This article contains general information only and does not constitute financial, taxation or legal advice. Investors should seek independent professional advice regarding their individual circumstances before making any investment decisions.