RPS Accountants & Business Advisors

2026-27 Federal Budget (Budget Night Announcement-12/05/2026)
NEGATIVE GEARING CHANGES

The core change: From 1 July 2027, negative gearing on residential property is restricted to new builds only.

* If you bought before 12 May 2026:
- No change — you keep full negative gearing rights indefinitely until you sell

* If you buy after announcement:
- Existing Properties - Losses can only offset other residential property income, not salary/wages. Excess losses can be carried forward to future years.
- New builds — negative gearing retained (losses can still offset wages/other income).

* If you buy from 1 July 2027:
- Existing properties — no negative gearing
- New builds — negative gearing retained (losses can still offset wages/other income)

What counts as a “new build”:
- New apartments off-the-plan
- Construction on vacant land
- Knock-down rebuilds that increase the number of dwellings

Excluded entirely: Commercial property, shares and widely held trusts.

Link to Budget Paper Fact Sheet:https://budget.gov.au/content/factsheets/download/tax-explainers-negative-gearing-capital-gains-tax.pdf

🤔 The Australian Taxation Office have developed a tailored guide for your occupation, full of helpful information on deductions, income and records 🤔

Check it out: https://bit.ly/3VsbNsp

Still not sure how a tax deduction works? 😐

It’s like this:
1️⃣ you start with your assessable income, which is the money you’ve earned from work or investments
2️⃣ you minus your allowable deductions, which are the costs you incur to earn your income
3️⃣ this equals your taxable income, which is the amount you actually pay tax on.

Remember, to claim a deduction, you’ll need to meet the eligibility requirements, and have a record (like a receipt) 🧾

Read more at www.ato.gov.au/Individuals/Income-deductions-offsets-and-records/Deductions-you-can-claim/How-to-claim-deductions

Claiming work from home expenses this tax time? 🏡 💻

There are two methods available to calculate your expenses, the:
✔️ revised fixed rate method
✔️ actual cost method

You can choose to use whichever method will give you the best outcome, as long as you meet the eligibility requirements and have the right records.

To learn more, see https://www.ato.gov.au/individuals/income-deductions-offsets-and-records/deductions-you-can-claim/working-from-home-expenses/

Small businesses: Are you nailing your record-keeping? 🔨📚
To help you get ready for tax time, here’s a few questions you can ask yourself:
👷 Am I keeping detailed records of any contractor payments?
🚗 Are my vehicle logbook records no more than five years old?
💰 Are any government grants or payments my business has received taxable?
🧾 Do I have records to show any amounts withheld from payments made to my business?

For more record keeping tips to make tax time a breeze, visit www.ato.gov.au/Business/Record-keeping-for-business/

👷 🔨 Attention tradies! We’ve developed a tailored occupation guide that will help you nail your deductions this tax time!

From tools and equipment to car and travel expenses, our guide has all the tips and tricks you need!

Find it at www.ato.gov.au/Individuals/Income-and-deductions/In-detail/Occupation-and-industry-specific-guides/Tradesperson---income-and-work-related-deductions/

Get Maximum Refund From Your Tax return. We are a Chartered Accountant Firm with industry experience.

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