Sydney Projects

Australia's 2026 Tax Reform: What It Means for Building in Sydney

Australia's 2026 tax reform changes negative gearing and CGT. Learn what this means for building, development, and housing supply in Sydney.

TL;DR The May 2026 federal budget introduced major tax changes that will reshape property development in Sydney. From 1 July 2027, negative gearing on established residential properties will be restricted to new builds only, and the 50 per cent capital gains tax discount will be replaced with cost base indexation. The government says this will push investment toward new housing. The construction industry says it will reduce overall supply. Meanwhile, Sydney is already tracking 40 per cent behind its housing target, construction costs have risen 30 per cent in five years, and building approvals are falling. Here is what these changes actually mean if you are planning to build. Introduction On 12 May 2026, the federal government announced the biggest changes to Australian property tax rules …