Australian property investors should check their tax position before 1 July 2027.
This property investor checklist tax changes 2027 guide outlines the key areas investors should review before the new rules take effect. The planned tax changes may affect negative gearing, capital gains tax reform, including capital gains tax and minimum tax rate rules, CGT records, fringe benefits tax implications, cash flow, investment portfolio performance and future buying plans.
These changes are part of the government’s push for a better tax system that is fairer and more sustainable.
The aim is to support productive investment, new housing supply, offset residential property income, and improve residential property income outcomes through targeted tax incentives and tax cuts.
What should property investors review before the 2027 tax changes?
Property investors should review the parts of their portfolio that affect tax, cash flow and sale plans to pay less tax and optimise returns.
This is important because the 2026–27 federal budget introduced major tax reforms. The changes may affect negative gearing, capital gains tax, fringe benefits tax, cash flow and future buying plans.
A clear property investor checklist can make this easier.
Use this list to prepare early. It can help you sort records and ask better questions before the 2027 property tax changes start.
Checklist item | Why it matters |
|---|---|
Loan structure | Interest costs affect cash flow and tax results, including tax paid. |
Depreciation schedule | Eligible depreciation may improve tax records and cash flow with instant tax deduction benefits. |
CGT records | Clear records help work out gains, losses and minimum tax rate details. |
Repairs and improvements | Repairs and capital improvements have different tax treatment and tax incentives. |
Property valuation | A valuation may support CGT, SMSF, estate or ownership records and development tax incentive claims. |
Accountant review | Advice can help you avoid costly errors, reduce compliance costs and understand better tax outcomes. |
1. Review your loan structure and borrowing costs
Your loan affects cash flow, taxable rental income and returns. Before the 2027 tax changes begin, test if your property still works under the new tax settings.
Review your rate, loan type and repayments. Check your offset account use, mortgage interest and deductible interest records too.
This step matters for established residential properties bought after the key cut-off dates. The government plans to limit negative gearing to new builds from 1 July 2027, which affects how you can pay tax on rental losses.
For established housing bought after 12 May 2026, you may no longer deduct rental losses against salary income or other income. This may change your taxable income and cash flow.
A loan review should include:
your current interest rate
fixed versus variable loan terms
interest-only versus principal and interest repayments
offset and redraw account use
deductible interest records
refinancing options
expected cash flow before and after tax
A broker, lender or accountant can help you test the numbers before you refinance, sell, buy or change your loan structure.
2. Confirm whether your property may be grandfathered
Before you make a major investment choice, check if your property may keep the current negative gearing and capital gains tax rules. This is known as grandfathering.
Under the legislative changes, properties held before the key Budget cut-off are expected to keep the current rules.
Keep records that show when you bought or held the property.
Key records to organise include:
contract of sale
settlement statement
loan approval documents
conveyancer or solicitor correspondence
property management records
ownership structure documents
trust, company or self-managed super fund records, if relevant
Purchase timing may affect how the 2027 tax changes apply to your property. Keep these records together so your accountant can review them before tax time or before you sell.
3. Update your tax depreciation schedule
A tax depreciation schedule helps you claim eligible deductions for wear and tear on your investment property, supporting small businesses and investors to claim less tax.
It separates capital works from plant and equipment. This helps your accountant report depreciation the right way.
Before the 2027 tax changes begin, check if your depreciation schedule is current.
This matters if you have bought, built, renovated or improved an investment property.
A depreciation schedule may help identify deductions for:
building structure and fixed items
capital works deductions
plant and equipment assets
eligible renovations
common property, where applicable
newly installed assets
construction costs
previous upgrades that still have claimable value
An updated schedule gives you a clearer view of taxable residential property income and after-tax cash flow. It may also support your CGT, renovation costs, and future property records.
4. Organise your capital gains tax (CGT) cost base records
Accurate CGT cost base records help your accountant work out your capital gain or capital loss if you sell after the 2027 tax changes.
From 1 July 2027, capital gains tax reform will replace the 50 per cent CGT discount with an inflation-based method. A 30 per cent minimum tax on gains may also apply.
Keep these records in one place, even if you do not plan to sell soon. Clear records can help show the taxable capital gains accrued above inflation and calculate your tax payable.
Transitional rules may protect old CGT treatment for gains that build up more than a year before the due date.
CGT record | Why it matters |
|---|---|
Purchase contract | Confirms purchase details and timing. |
Settlement statement | Shows final purchase costs and changes. |
Stamp duty records | May form part of your cost base. |
Legal and conveyancing fees | Supports eligible purchase or sale costs. |
Buyer’s agent fees | May support purchase-related costs. |
Loan-related documents | Helps review loan costs and ownership records. |
Renovation invoices | Supports capital improvement claims. |
Capital improvement costs | May lift your cost base and reduce taxable gain. |
Depreciation schedules | Helps match past claims with CGT changes. |
Property valuation reports | A formal valuation before 30 June 2027 may help set the new cost base. |
Selling agent fees | May form part of sale-related CGT costs. |
Advertising costs | Supports eligible sale costs. |
Sale contract | Confirms sale price, date and terms. |
5. Separate repairs from improvements
Property investors should review repairs, maintenance and improvements before tax time. These costs may look alike on invoices, but the tax treatment can differ.
A repair usually restores something to its former state. An improvement usually upgrades, replaces or adds something new.
This matters because repairs and capital improvements are claimed in different ways and may affect your fringe benefits tax and other tax incentives.
Keep invoices, photos and notes for each job. Your accountant can check if the cost is a repair, capital improvement, capital works deduction or plant and equipment asset.
Expense | Likely tax treatment |
|---|---|
Fixing a leaking tap | Repair or maintenance |
Replacing a damaged door handle | Repair or maintenance |
Repainting worn internal walls | Repair or maintenance, based on timing and scope |
Replacing an entire bathroom | Capital improvement |
Installing a new deck | Capital improvement |
Replacing kitchen cupboards | Capital improvement |
Installing new carpet | May involve depreciation treatment |
Adding air conditioning | May involve plant and equipment depreciation |
6. Consider whether you need a property valuation
A property valuation can help when market value affects tax, ownership or planning.
This may include CGT, ownership changes, related-party transfers, SMSF reporting, estate planning or retrospective tax records.
Not every investor needs a valuation before 2027. But if market value may affect your tax position or development tax incentive claims, ask your accountant if a valuation report is needed.
7. Review your rental income, expenses and cash flow
Before the 2027 property tax changes begin, review how your investment property performs before and after tax.
This helps you see if the property still suits your goals if deductions change, rates rise, or costs increase.
For a new purchase of an established property after the cut-off, you may no longer deduct losses against other income. Unused losses may be carried forward to future years. They may then offset income or capital gains from residential property investments.
This review should help you answer three practical questions:
Is the property still affordable to hold?
Will the property still work if tax deductions become less useful?
Do I need to adjust rent, refinance, sell, hold or buy another property?
The policy is intended to support housing market supply and new housing supply. It may also affect how investors compare new builds and established properties based on rental yields.
A clear cash flow review gives your accountant, broker or adviser better facts before you make a major decision.
8. Book an accountant review before making major decisions
Before you buy, sell, refinance or restructure, speak with a certified accountant or registered tax agent with real estate experience.
The 2027 property tax changes may affect each investor in a different way. It depends on when you bought, what you own, your income, your loan, your plans and your ownership structure.
This may include discretionary trust income. Some trust income may also face a 30 per cent minimum tax from 1 July 2028.
Bring your key records to the review. This includes loan documents, rental income records, expense receipts, depreciation schedules, renovation invoices, CGT cost base records and any valuation reports.
An accountant can help you review:
whether your property may be grandfathered
how negative gearing changes may affect your cash flow
how CGT changes may affect a future sale
whether any exemptions may apply
whether your records support your claims
whether repairs, improvements and depreciation are treated correctly
whether you should review or restructure your ownership structure before 1 July 2027
whether to model buying a new or established residential property after Budget night
whether buying, selling or refinancing makes sense before 2027
If rollover relief or a pre-2027 sale window may apply, speak with your accountant before the end of 2026.
Early advice can help you avoid rushed choices based on missing or unclear records.
Final checklist before the 2027 tax changes
Preparing for the 2027 tax changes starts with clear records and accurate numbers.
Before 2027, review your loan structure, depreciation schedule, CGT records, repairs, improvements, property value, rental income and accountant advice.
Do not wait until you sell, refinance or lodge your tax return. It may be harder to find old records or fix missing details later.
Property investors can prepare with an ATO-compliant tax depreciation schedule or an independent property valuation by contacting Duo Tax at 1300 185 498. These reports can support clearer tax records and better-informed investment decisions.
FAQs
What are the 2027 property tax changes for investors?
The 2027 property tax changes are legislative changes that will take effect. They will affect negative gearing, capital gains tax reform and the broader tax system from 1 July 2027.
Investors should review rental losses, deductions, CGT records and cash flow to pay less income tax.
How can property investors prepare for the 2027 tax changes?
Investors can prepare by reviewing their loan structure, depreciation schedule, CGT records, repair and improvement invoices, valuation needs and accountant advice.
Will negative gearing still apply after 1 July 2027?
Under the legislative changes, negative gearing for residential property investments is expected to be limited to new builds.
For newly purchased established properties, losses may no longer reduce income tax on wages or other income.
Existing properties held before the key Budget cut-off are expected to keep the current rules.
What should be included in a property investor checklist?
A property investor checklist for 2027 tax changes should include loan review, rental income, expenses, depreciation schedule, CGT records, repairs, capital improvements, property valuation, ownership records and accountant review.
Why is a tax depreciation schedule important before 2027?
A tax depreciation schedule helps identify eligible capital works and plant and equipment deductions.
It can also support records, taxable residential property income calculations and cash flow planning.
What CGT records should property investors keep?
Investors should keep purchase contracts, settlement statements, stamp duty records, legal fees, renovation invoices, capital improvement costs, depreciation schedules, valuation reports and sale records.
Do property investors need a property valuation before the 2027 tax changes?
Not every investor needs a valuation. But a property owner may need a formal valuation before 30 June 2027, where market value is needed.
What is the difference between repairs and capital improvements?
Repairs usually restore something to its former state. Capital improvements usually upgrade, replace or add something new.
Should investors review their loans before 1 July 2027?
Yes. Investors should review interest rates, repayment type, offset account use, deductible interest records and after-tax cash flow before the 2027 changes begin.
Who should property investors speak to before the 2027 tax changes?
Investors should speak with an accountant or registered tax agent about ownership structures, tax arrangements and major decisions before buying, selling, refinancing or restructuring.
A quantity surveyor can help with a tax depreciation schedule. A property valuer can support market value evidence.
