2026 Federal Budget: What Investors Need to Know About Negative Gearing and Capital Gains Tax

ACP Team • June 25, 2026

The 2026 Federal Budget has reignited discussions around two of Australia's most significant property investment tax concessions: negative gearing and the capital gains tax (CGT) discount.

While no immediate legislative changes have been enacted, investors should remain informed as these concessions continue to attract attention from policymakers and economists.

What is Negative Gearing?

Negative gearing occurs when the expenses associated with an investment property, such as loan interest, maintenance, and other holding costs, exceed the rental income generated. The resulting loss can generally be claimed as a tax deduction against other taxable income.

This strategy has long been used by property investors to help reduce their overall tax liability while building long-term wealth.

What is the Capital Gains Tax Discount?

Currently, individuals and trusts may be eligible for a 50% CGT discount when selling assets that have been held for more than 12 months. This concession reduces the taxable portion of any capital gain and can significantly impact after-tax investment returns.

Potential Impact on Property Investors

Should future reforms be introduced, they could affect:

  • Property investment strategies
  • Investment property cash flow
  • Long-term wealth creation plans
  • Asset disposal and timing decisions
  • Retirement planning outcomes

Investors with existing portfolios may wish to review their structures and ensure they are prepared for any future changes.

What Should Investors Do Now?

At this stage, there is no need for immediate action based solely on speculation. However, it is an excellent opportunity to:

  • Review your investment portfolio
  • Assess the tax efficiency of your current structures
  • Consider future acquisition and disposal strategies
  • Seek professional advice before making significant investment decisions

How ACP Accountants Can Help

Our team regularly monitors tax legislation and government policy developments to help clients stay informed and prepared.

If you own investment properties or are considering investing in property, we can review your current tax position and provide tailored advice to help you achieve your financial goals.

For further information or to arrange a consultation, contact ACP Accountants today.

Payday Super Is Coming

By ACP Team • May 25, 2026
From 1 July 2026, one of the biggest changes to Australia’s superannuation system will take effect — “Payday Super”. Under the new rules, employers will be required to pay employees’ superannuation at the same time as wages, rather than quarterly. Currently, businesses can pay Superannuation Guarantee (SG) contributions quarterly. However, the new legislation will require super payments to reach employees’ super funds within 7 business days of each pay run. The Federal Government introduced these reforms to reduce unpaid super, improve transparency, and help Australians grow their retirement savings faster through more frequent contributions. Industry estimates suggest billions of dollars in super currently go unpaid each year. For business owners, this means payroll systems, cash flow management, and internal processes may need to be updated before the commencement date. Employers should begin reviewing their payroll software and payment procedures now to ensure they are prepared for the transition. At ACP Accountants, we are helping Sydney businesses prepare for Payday Super by reviewing payroll systems, compliance processes, and cash flow strategies to ensure a smooth transition ahead of July 2026.  If you would like assistance preparing your business for the upcoming changes, contact ACP Accountants today.

Claiming Travel Expenses – Company Director

By Alan Law • February 10, 2026
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$20,000 Instant Asset Write-off For This 2025

By ACP Team • May 31, 2025
On 14 May 2024, as part of the 2024–25 Budget, the government announced it will continue to provide support for small businesses by extending the $20,000 instant asset write-off limit for a further 12 months until 30 June 2025. This measure is now law. Under the measure small businesses with an aggregated turnover of less than $10 million, can deduct: the full cost of eligible depreciating assets costing less than $20,000 that are first used or installed ready for use between 1 July 2024 and 30 June 2025; an amount included in the second element (cost addition) of eligible depreciating asset's cost that they have incurred between 1 July 2024 and 30 June 2025, if they claimed an immediate deduction for the asset under the simplified depreciation rules in a prior income year where the amount is: the first amount of second element cost incurred after the end of the income year in which the asset was written off; and less than $20,000. The $20,000 limit under the measures applies on a per asset basis, so small businesses can instantly write off multiple assets. Assets valued at $20,000 or more can continue to be placed into the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year after that. In addition, pool balances under $20,000 at the end of 2024-25 income year can be written off. Are you running your own business and have no time to deal with tax issues? Contact us today, Sydney's leading accounting firm at ACP Accountants on 02-8046 7621, or simple drop us a line at info@acpaccountants.net.au.