Investor check
Compare yield, cash flow and tax together
A yield headline is only useful after vacancy, land tax, strata and interest are included.
Short answer
Economic models can help test how tax settings may affect housing demand, rents and ownership. They do not provide a certain forecast for the enacted 2026 reforms.
Results depend on assumptions about housing supply, investor responses, household formation, credit, migration and how closely the modelled policy matches the final law. A result from one study should not be presented as the price or rent change that will occur.
What is known
The 2026-27 Budget estimated that its negative-gearing and CGT changes would support additional home ownership over the decade. Budget Paper No. 1 also acknowledged a modest reduction in housing supply relative to a no-policy-change baseline, which the Government expects other supply measures to offset.
Those are official policy estimates, not guaranteed outcomes.
What remains uncertain
- How investors rebalance between established and new dwellings.
- How quickly housing supply responds.
- The path of interest rates, incomes and credit availability.
- State planning, infrastructure and construction capacity.
- Rent and price responses in individual cities and suburbs.
Sources
- Budget 2026-27 tax reform, checked 10 July 2026.
- Budget Paper No. 1, checked 10 July 2026.
- Treasury Laws Amendment (Tax Reform No. 1) Act 2026, checked 10 July 2026.
General information disclaimer
This is general information, not a property forecast, investment recommendation or tax advice.
RealEstateCalc Editorial
Property & Finance ResearchThe RealEstateCalc editorial team researches and writes about Australian property, finance, and tax topics. All content is fact-checked against official sources including the ATO, state revenue offices, ASIC Moneysmart, and the RBA.
Related Calculators
Capital Gains Tax Calculator
Calculate capital gains tax (CGT) on Australian investment property. Estimate your taxable capital gain, CGT discount eligibility, tax payable, and net profit after tax.
PropertyNegative Gearing Calculator
Model 2026-27 rental income, expenses, an indicative tax effect and after-tax holding cash flow. General information only, not a tax assessment.
PropertyBuy vs Rent Calculator
Compare the total cost of buying vs renting a home over time. Factor in mortgage repayments, property growth, rent increases, stamp duty, holding costs, and investment returns to see which option builds more wealth.
PropertyRelated Articles
Negative Gearing and CGT Reform: What the 2026 Act Does
A corrected guide to the enacted 2026 negative gearing and CGT changes, including the different transition rules that apply to each measure.
CGT Reform from 1 July 2027: Why Simple Examples Can Mislead
Why post-2027 CGT estimates need acquisition timing, a 1 July 2027 transition value or apportionment, indexation and minimum-tax checks.
Property Tax Changes from 2027: Questions for Investors to Check
A non-prescriptive checklist for reviewing the enacted negative gearing and CGT changes with a registered tax adviser.
Ready to try the Capital Gains Tax Calculator?
Use the calculator to model an indicative estimate from the assumptions you enter.
What moved in Australian property this week — in your inbox Sunday.
RBA decisions, clearance rates, policy shifts and the calculators that dropped. Two-minute read, no filler.
Free. No spam. Unsubscribe anytime.