By Rose Truong, Principal, RAM Properties • Last updated July 1, 2026
The 2026-27 Federal Budget limits negative gearing on established homes bought after 12 May 2026, but new builds, including house and land packages, keep full access to both negative gearing and the capital gains tax discount. Combined with Brisbane’s 2032 Olympic infrastructure pipeline and tight housing supply across Brisbane, Ipswich and Logan, this shifts the investment case toward new-build property in South East Queensland.
Property investors weighing up an established home against a new-build house and land package now have a clear tax signal to consider. The 2026-27 Federal Budget, handed down on 12 May 2026, changed how negative gearing and capital gains tax (CGT) apply to residential property, and the changes treat new builds differently to existing dwellings. This article is for investors and first home buyer-adjacent upgraders assessing Brisbane, Ipswich or Logan as their next purchase. It explains what changed in the Budget, why Brisbane’s Olympic infrastructure pipeline matters to that decision and what RAM Properties, a Mansfield-based buyer’s advocacy and real estate agency led by Rose Truong, sees in the local market.
What Is a House and Land Package?
A house and land package is a property purchase where a buyer contracts to buy a block of land and a newly constructed home on it, typically through separate land and building contracts. The land is usually bought first, with the home built to a chosen floorplan afterward. Because the dwelling is newly constructed, house and land packages fall within the Australian Taxation Office’s (ATO) definition of a “new build” for the purposes of the 2026-27 Budget’s negative gearing reforms.
This distinction now carries direct tax consequences. Established homes bought as investments after Budget night sit under a more restrictive set of rules. New builds, including house and land packages, do not.
How Does the 2026-27 Budget Change Negative Gearing?
From 1 July 2027, negative gearing on residential property will be limited to new builds that add to housing supply. The Australian Taxation Office confirms these measures are now law, following the Treasury Laws Amendment (Tax Reform No. 1) Act 2026.
What happens to properties bought before 12 May 2026?
Properties held before 7:30pm AEST on 12 May 2026 keep full access to negative gearing under the existing rules until the property is sold. This includes properties under contract awaiting settlement at that time, so investors who had already committed to a purchase are not caught by the change.
What happens to established properties bought after 12 May 2026?
Losses on established properties can still be offset, but only against rental income or capital gains from residential property, not against wages or other income. Any unused losses carry forward to future years, so the deduction is not lost entirely, just restricted in what it can be claimed against.
What happens to new builds, including house and land packages?
New build residential properties remain fully exempt from the restriction. Investors who buy a new build, such as a house and land package, an off-the-plan apartment, or a knock-down rebuild that adds to overall housing stock, can still deduct rental losses against any income source. Widely held trusts, superannuation funds, build-to-rent developments, and investors supporting government housing programs are also exempt from the new-build restriction.
For a house and land package specifically, the ATO’s “new build” criteria are met because the dwelling is constructed on the land after purchase, adding a net new residential property to the housing stock rather than transferring an existing one.
Why Does the New Capital Gains Tax Regime Also Favour New Builds?
From 1 July 2027, the 50% CGT discount for individuals, trusts and partnerships will be replaced with cost base indexation and a minimum 30% tax rate on capital gains. This change applies to gains that accrue after that date, so it affects the after-tax return an investor keeps on sale, not just the annual cash flow benefit negative gearing provides.
Investors who buy a new build retain a choice the reform removes for everyone else. They can elect either the existing 50% CGT discount or the new indexation-and-minimum-tax arrangement when they eventually sell, according to the ATO and Baker McKenzie’s analysis of the Budget papers. Investors in established property bought after 12 May 2026 do not get that choice; they move straight to the new regime.
Commonwealth Bank’s May 2026 housing outlook estimates that removing negative gearing on established property is broadly equivalent to a 90 to 155 basis point increase in an investor’s mortgage rate in immediate cash-flow terms, with the effect largest for highly leveraged investors on high marginal tax rates. New builds sidestep that cash-flow hit entirely.
Structured comparison: established property vs house and land package, purchased after 12 May 2026
| Factor | Established property | House and land package (new build) |
|---|---|---|
| Negative gearing on other income | No, losses quarantined to property income only | Yes, full deduction against any income |
| CGT treatment on sale | New indexation and 30% minimum tax regime only | Choice of 50% discount or new regime |
| Effective date of restriction | Applies from 1 July 2027 | Not restricted |
| Contributes to housing supply | No | Yes |
Why Is Brisbane a Strong Backdrop for House and Land Investment?
Brisbane entered 2026 with the tightest rental vacancy rate of any Australian capital and one of the country’s largest infrastructure pipelines, and both factors support new housing demand. ANZ Research forecasts Brisbane dwelling values will grow 9.7% across 2026, moderating to 1.4% in 2027 as affordability constraints and interest rates work through the market.
Three structural drivers sit behind that forecast:
- Population growth. Queensland’s population grew 2.3% in the year to June 2024, well above the national average, with most of that growth landing in Greater Brisbane, according to Australian Bureau of Statistics data cited by PropertyUpdate.
- Constrained new supply. CBRE forecasts Brisbane’s rental vacancy rate will stay at or below 1.0% until at least 2031, with inner-city dwelling completions averaging only around 3,100 a year over the same period.
- Rising land costs. RPM Group’s April 2026 South East Queensland Greenfield Market Report found median land prices across the region passed $500,000 for the first time, up 26% over the previous year and 86% since March 2022.
For an investor comparing suburbs, this combination of population growth outpacing new supply means demand for both existing and new housing is likely to stay elevated through the Olympic build-out period.
How Will the 2032 Olympics Affect Brisbane Property Values?
Brisbane’s hosting of the 2032 Olympic and Paralympic Games is underpinning roughly $11.2 billion in venue and precinct construction across South East Queensland through to 2032, according to Colliers, and history suggests host cities see stronger price growth after the Games than before them.
CBRE’s analysis of every Olympic host city since 1996 found average residential price growth of 42.5% in the four years after the Games, compared with 23.3% in the four years before, as reported by PropertyUpdate. Hotspotting director Terry Ryder points to a similar pattern in earlier Games cycles, noting increases of up to 130% in the Barcelona lead-up to the 1992 Olympics and 88% ahead of Sydney 2000.
What Olympic infrastructure is driving this?
Brisbane’s Olympic infrastructure spend includes:
- Cross River Rail, a 10.2km underground rail line connecting Dutton Park to Bowen Hills via four new stations, including Woolloongabba and a new Roma Street interchange
- Brisbane Metro, a busway and rapid transit upgrade cutting congestion across the inner city
- Queen’s Wharf, a tourism and entertainment precinct in the CBD
- A new 63,000-seat Brisbane Stadium at Victoria Park, replacing the original Gabba redevelopment plan, with earthworks starting mid-2026 and a $3.8 billion budget
- Brisbane Airport expansion, supporting the projected 4.3 million additional international arrivals CBRE estimates between 2026 and 2032
Colliers State Chief Executive Queensland, Simon Beirne, notes that Olympic-driven demand in other host cities has typically peaked later in the cycle, as operational requirements ramp up and the full scale of the event comes into focus, rather than at the point infrastructure spending begins. That timing matters for investors deciding when to buy rather than assuming the opportunity has already passed.
Which Brisbane suburbs are tipped to benefit most?
Research from iBuyNew and Hotspotting has identified 22 suburbs across Brisbane, the Gold Coast and the Sunshine Coast tipped to benefit from the Olympic infrastructure rollout, with Brisbane examples including Bowen Hills, Spring Hill, Newstead, Fortitude Valley, Woolloongabba, East Brisbane, Coorparoo, Stones Corner, Dutton Park and Kangaroo Point, all close to confirmed venues or Cross River Rail stations.
Which Brisbane, Ipswich and Logan Growth Corridors Suit House and Land Investment?
Investors buying house and land packages for the Olympic cycle are generally looking at growth-corridor suburbs in the outer and middle rings of Brisbane, Ipswich and Logan, rather than the inner 5km ring where the Games venues themselves are concentrated. Land supply for new house and land packages sits predominantly in these greenfield corridors, where new estates are still releasing titled blocks.
This is the segment where RAM Properties works most often with clients, including overseas buyers purchasing house and land packages sight unseen. Rose Truong’s fluency in English, Vietnamese, Cantonese and Mandarin is a practical advantage here. Greenfield contracts, land registration timelines and construction-stage payment schedules are easier to understand and act on in a buyer’s first language, particularly for clients purchasing from outside Australia.
[RAM Properties note: this section should include one first-hand client example, a specific investor Rose has worked with, the decision they made, and the outcome, once approved for publication. Placeholder retained until a real case is supplied.]
What Should Investors Check Before Buying a House and Land Package?
Confirm four things before signing a house and land contract: the “new build” classification, the builder’s track record, the total land-plus-build cost against comparable established homes, and the projected settlement and construction timeline.
Is the package eligible for new-build negative gearing?
Verify with your accountant that the specific package meets the ATO’s new-build definition for negative gearing purposes before relying on that tax treatment.
Is the builder reputable?
Ask for addresses of homes built in the last two years and, where possible, inspect one. Check the builder’s licence is current.
How does the total cost compare to established homes nearby?
Include site costs, council contributions and any land registration delays in the comparison, not just the advertised package price.
What does the construction timeline look like?
Model the build against Olympic-period trade and materials constraints. Colliers and CBRE both flag rising construction costs and trade capacity pressure as Olympic-related building activity ramps up from late 2026, which can extend build times on new estates.
FAQ
What is a house and land package?
A house and land package is a property purchase combining a block of land with a newly built home, usually under separate land and building contracts. Because the dwelling is newly constructed, it is classified as a “new build” under the ATO’s 2026-27 negative gearing rules, which treat new builds more favourably than established homes bought after 12 May 2026.
Can I still negative gear an established investment property in Australia?
Yes, but with limits from 1 July 2027 if bought after 12 May 2026. Losses on established properties acquired after that date can only offset rental income or residential property capital gains, not wages or other income. Properties held before that date keep full negative gearing until sold.
Are house and land packages a good investment before the Brisbane 2032 Olympics?
They can be, for investors prioritising tax efficiency and new supply exposure. House and land packages keep full negative gearing and a choice of CGT treatment on sale. Brisbane’s Olympic infrastructure pipeline and tight rental vacancy also support demand, though outcomes depend on suburb, builder and finance costs.
Is negative gearing being abolished in Australia?
No. Negative gearing continues for new builds without change, and for established properties held before 7:30pm AEST on 12 May 2026. The restriction applies only to established properties bought after that date, effective from 1 July 2027, and quarantines losses to property-related income rather than removing the deduction entirely.
How does the new capital gains tax rule affect property investors from 2027?
From 1 July 2027, the 50% CGT discount is replaced with cost base indexation and a 30% minimum tax rate on gains for most investors. Buyers of new builds, including house and land packages, retain the option to choose either the old 50% discount or the new regime when they sell.
Do house and land packages qualify as new builds for negative gearing purposes?
Generally yes, because the ATO’s new-build definition covers residential construction that adds a net new dwelling to housing supply, which includes land bought for the purpose of building a home. Confirm eligibility with an accountant against the specific contract structure before purchase.
Which Brisbane council areas benefit most from Olympic infrastructure spending?
Brisbane City Council areas near confirmed venues and Cross River Rail stations, such as Woolloongabba, Bowen Hills and Kangaroo Point, are expected to see the most direct uplift. Ipswich and Logan benefit indirectly through population growth, transport upgrades and spillover housing demand as inner-ring supply tightens.
Key Takeaways
- The 2026-27 Federal Budget restricts negative gearing to new builds for established property bought after 12 May 2026, effective 1 July 2027, while new builds such as house and land packages remain unaffected.
- New-build buyers also retain a choice between the 50% CGT discount and the new indexation-and-minimum-tax regime; established-property buyers after Budget night do not.
- Brisbane’s rental vacancy rate is forecast to stay at or below 1.0% until 2031, against roughly $11.2 billion in Olympic-related construction activity through to 2032.
- CBRE data across every host city since 1996 shows average price growth of 42.5% in the four years after the Olympics, versus 23.3% in the four years before.
- Growth-corridor suburbs across Brisbane, Ipswich and Logan carry most of the current house and land package supply, distinct from the inner-ring suburbs closest to Olympic venues.
Sources
- Australian Taxation Office, Tax reform: Reforming negative gearing and capital gains tax
- Australian Government, Budget 2026-27, Tax Reform
- Baker McKenzie, Australia: Budget Bites, CGT Discount and Negative Gearing
- William Buck, Federal Budget Analysis 2026: Negative Gearing
- Commonwealth Bank, 2026 Budget: Updated Housing Outlook
- PropertyUpdate, Brisbane 2032: What the Olympics Really Means for Property Investors
- PropertyUpdate, Brisbane Property Market Forecast 2026 and Beyond
- CBRE Australia, Super-Sized Property Outcomes Forecast from Brisbane Olympics
- API Magazine, Brisbane Property Investors Racing the Clock Before Olympic Construction Crunch Intensifies
- Smart Property Investment, Olympic Boom: 22 SEQ Suburbs Tipped for Property Price Surge
This article provides general information about tax and property market conditions. It is not personal financial, tax or investment advice. Investors should confirm negative gearing eligibility, CGT treatment and finance structuring with a registered tax agent or financial adviser before purchasing.
About the Author
Rose Truong is the Principal of RAM Properties, a real estate and buyer’s advocacy agency based in Mansfield, Queensland, serving Brisbane, Ipswich and Logan council areas. Fluent in English, Vietnamese, Cantonese and Mandarin, Rose specialises in house and land packages and established homes for local and overseas buyers.