New builds are exempt from the 2026 negative gearing reform entirely — regardless of when you buy one. A loss on a new-build rental can still offset your salary and other income, the same as it always has.
Why new builds are treated differently
The reform targets established housing stock specifically — the policy goal is to avoid discouraging new housing supply while narrowing negative gearing on the existing market. A genuinely new dwelling doesn't compete with an existing owner-occupier for the same property, so it sits outside the quarantine rules that apply to established dwellings bought on or after 12 May 2026, 7:30pm AEST.
What this means in practice
If your property qualifies as a new build, none of the quarantine restrictions apply — not now, and not from 1 July 2027 either. A loss on it can offset your salary and other income exactly the way negative gearing has always worked, for as long as you own it. There's no separate cutoff date to track for a new build the way there is for an established dwelling.
What counts as a new build
Broadly, a new build is a dwelling that hasn't been previously sold or occupied as a place of residence — a first sale from a developer or builder, rather than a purchase of an existing home from a previous owner. If you're unsure whether a specific property qualifies (for example, off-the-plan purchases, or a knock-down rebuild), that's a question worth confirming with your accountant or conveyancer at the contract stage, since it determines which regime applies for as long as you hold the property.
This guide reflects the announced reform rules as a general explainer and isn't a substitute for advice from your accountant about your specific situation.