The start of a new financial year is a natural reset point for property investors. Returns for the year just ended are being prepared, portfolio performance is front of mind, and there is a full twelve months ahead in which good decisions have time to work.
This year, though, the new financial year carries more weight than usual. FY2026-27 is the last full financial year before the reforms announced in the 2026-27 Federal Budget begin taking effect. How your properties are owned today will influence how well positioned you are when the new rules arrive.
2026 Federal Budget Summary
For property investors there are a lot of changes in the 2026 Federal Budget and some of the information on this page may have changed recently.
But it all starts from 01 July 2027 and it has to pass Parliament first.
So there is time to think about strategies. Contact us for advice.
Read our summary report of the treaurer’s announcements.
Future newsletters will address specific property related announcements so Contact Us to join the Newsletter
Why review your ownership structure now?
Ownership structure is one of the most consequential decisions in property investing. It affects how income and gains are taxed, how exposed your assets are to risk, what land tax thresholds apply, and how easily wealth passes to the next generation. Yet many investors set their structure once, at the time of purchase, and never revisit it.
A start of year review makes sense for practical reasons:
- Decisions made early have the best past of a full financial year to take effect, rather than being rushed through in June.
- Your position for the year ahead is still open. Acquisitions, refinancing and distributions can all be planned around the structure rather than in spite of it.
- Any restructuring worth doing takes time to implement properly. Starting early keeps your options open.
What is changing?
Three measures from the May 2026 Federal Budget directly affect how investment property is owned and taxed. All remain subject to the passage of legislation, but the announced timeline is clear:
- Capital gains tax. From 1 July 2027, the 50 per cent CGT discount is proposed to be replaced with an indexation based approach and a minimum 30 per cent tax on net capital gains. Our summary of the CGT changes explains how the new arrangements would work.
- Negative gearing. From 1 July 2027, negative gearing is proposed to be limited to new builds. Established properties acquired after Budget night are treated differently to those already held, as covered in our negative gearing update.
- Discretionary trusts. From 1 July 2028, distributions from discretionary trusts are proposed to face a minimum 30 per cent tax, with rollover relief available for restructures for three years from 1 July 2027. Our discretionary trust article sets out the detail.
Importantly, grandfathering arrangements apply to several of these measures. Whether a particular property or structure is affected depends on when it was acquired and how it is held, which is exactly why a review matters.
What does a structure review cover?
A proper ownership structure review is not simply a question of whether to hold property in your own name, a trust, a company or a self managed super fund. It considers your portfolio and goals as a whole, including:
- Whether each property’s current structure still aligns with your income position, family circumstances and long term plans.
- Your asset protection position, and whether personal or business risk exposes property that could be better shielded.
- Land tax outcomes across the states in which you hold property, since thresholds and surcharges vary by structure and jurisdiction.
- How loans are structured, and whether financing arrangements support or undermine the structure.
- Whether restructuring is genuinely worthwhile once transaction costs such as stamp duty and any CGT consequences are taken into account.
Sometimes the right answer is to change nothing. The value of the review is knowing that with confidence, rather than assuming it.
Why timing matters this year
The proposed rollover relief window for trust restructures opens on 1 July 2027 and runs for three years. Investors who understand their position early can decide calmly whether to act, when to act, and in what order. Those who wait risk making significant structural decisions under time pressure, or missing the window altogether.
FY2026-27 is the planning year. The reforms do not begin until July 2027, which means there is time to model your position, weigh your options and implement any changes carefully. That time is an asset. It is worth using.
Speak with Australia’s property tax structure specialists
Property Tax Specialists advise investors across Australia on ownership structures, asset protection and strategic tax planning. If you would like to start the financial year with a clear view of where you stand, call us on 1800 800 829 or book a consultation today.
