Kedron Property Investors: What the 2026 Budget Means

The 2026 Federal Budget introduced major changes for residential property investors. From 1 July 2027, negative gearing will be limited for many established properties, the capital gains tax rules will change and SMSFs can no longer enter new limited recourse borrowing arrangements to buy residential property.

If you own an investment property in Kedron or across Brisbane’s northside, you may be asking whether to sell, hold or change your plans. The answer depends on when you bought, how the property performs and who is likely to buy it. Here is what changed and what it may mean for you.

What changed for property investors

The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 received Royal Assent on 26 June 2026. The main changes for residential investors are:

• Negative gearing. From 1 July 2027, losses on established residential property acquired after 7:30 pm AEST on 12 May 2026 can generally be used against residential property income and gains, but not wages. Eligible new builds retain full negative gearing.
• Capital gains tax. From 1 July 2027, Australian resident individuals and most trusts move from the 50% CGT discount to an inflation-indexed cost base, with a 30% minimum tax on real gains. Eligible new builds can still choose the 50% discount.
• SMSF borrowing. From 10 August 2026, new limited recourse borrowing arrangements for residential property are no longer available to SMSFs. Existing arrangements, permitted refinancing and acquisitions under earlier contracts are protected by transitional rules.
• Lending limits. Since 1 February 2026, APRA-regulated lenders may write no more than 20% of new investor loans, and separately owner-occupier loans, at a debt-to-income ratio of six times or more, subject to exclusions.

See Treasury’s 2026–27 tax reform summary, the enacted legislation and APRA’s debt-to-income policy for the official detail.

If you already own an investment property

Properties you owned or had under contract before 7:30 pm AEST on 12 May 2026 are grandfathered. You can keep negatively gearing them under the old rules for as long as you hold them.

That protection belongs to you, not the property. When you sell, your buyer gets the new rules. If they’re an investor buying an established property, any rental losses will be quarantined from 1 July 2027. That changes who’s likely to pay the most for your property.

It also means selling has a cost beyond commission and tax. If your property runs at a loss and you rely on the deduction, replacing it with another established property won’t give you the same tax treatment.

Should you sell before 1 July 2027

Under the new rules, property held on 30 June 2027 is generally treated as sold and reacquired at the changeover. When it is later sold, the pre-1 July 2027 gain can retain the current treatment, while the later gain falls under the new rules. The legislation provides for a 1 July 2027 market value or a prescribed apportioning method, subject to its conditions. Your accountant can advise which method applies. For some investors, there may still be good reasons to sell before the new rules start.

• Simplicity. Selling before 1 July 2027 keeps the whole gain under the current rules and may avoid the later valuation or apportionment work required under the transition rules.
• You bought after Budget night. If you bought an established investment property after 7:30 pm AEST on 12 May 2026, you can only negatively gear it until 30 June 2027. If it runs at a loss and you’re not committed to holding it long term, selling before then may make sense.
• You were planning to sell anyway. If a sale is already on your horizon in the next year or two, bringing it forward means one set of rules, one calculation and certainty about your tax position.
• Competition from other sellers. Many investors are reviewing their portfolios ahead of the changes. Listing before others make the same decision can mean less competition for buyers’ attention.

Timing matters if you want the current rules to apply. The CGT event usually happens on the date you sign the contract, not settlement, so the contract needs to be signed before 1 July 2027. Allow time for preparation, marketing and negotiation. A typical sale campaign runs several weeks before a contract is signed, so starting early in 2027 gives you room to sell well rather than in a rush.

Every investor’s position is different. Ask your accountant to compare selling before and after 1 July 2027 for your property, then plan your campaign around the answer.

Where investors are heading now

Investors haven’t left the market, but they’re buying differently.

• Quality established property. Investors still buying established homes are paying for location, land and long-term growth, knowing a tax refund won’t cover a shortfall.
• New builds. Because new builds keep negative gearing and the 50% CGT discount, more investors are buying house and land, off-the-plan or knockdown projects that add dwellings.
• Higher-yield property. Without negative gearing to soften a loss, cash flow matters more. A growing number of investors are moving towards higher-yield property that pays its own way, such as dual income homes and dual occupancy.
• Development sites. Brisbane City Plan changes effective from 18 September 2026 can support dual occupancies on lots from 400 m² in parts of the Low-medium density residential zone where the relevant zoning, precinct and design criteria are met. Property-specific planning checks are still required.

What it means in Kedron and Brisbane’s north

Kedron sits around 7 km north of the CBD, with Lutwyche Road, the Airport Link tunnel and Kedron Brook parklands nearby, and Chermside’s shopping and hospital precinct close by. It is an established suburb of family homes, including character Queenslanders on good-sized blocks.

That profile matters under the new rules. Established houses in suburbs like Kedron, Wooloowin, Lutwyche, Gordon Park and Stafford tend to have higher land values and lower rental yields. For investors buying after Budget night, that combination is harder to justify without negative gearing. For owner-occupiers, it’s exactly what they’re after.

In practice, that means:

• Owner-occupiers are often a leading buyer group for established northside homes. Depending on the lease and likely buyer pool, presenting the property as a home rather than only as an investment may broaden its appeal.
• Land and zoning are worth checking. A property with genuine second-dwelling potential may attract builders and investors as well as home buyers. Parts of Kedron are covered by Brisbane’s traditional building character overlay, which can restrict demolition, so obtain property-specific planning advice before promoting development potential.
• Units are a different market. Units near Lutwyche Road and transport tend to rent well and suit investors focused on yield and first home buyers.

A local real estate agent who knows Kedron’s streets, zoning and buyer pool can help position the property for the most relevant buyers.

What sellers should do now

• Know your numbers. Ask your accountant to estimate your capital gain and tax before you list, so you know what you’ll actually walk away with.
• Identify your likely buyer. Owner-occupier, investor or developer. Each needs a different campaign.
• Time it around your tenant. Check your lease dates and decide whether to sell vacant or tenanted.
• Watch your selling costs. Commission is a significant selling cost and comes directly out of your return. On a $1 million sale, every 1% of commission is $10,000.
• Get advice before you sign. Selling, buying again and restructuring all have tax consequences that are hard to undo.

Frequently asked questions

Will I lose negative gearing if I sell my investment property

You lose it on that property, because you no longer own it. Any established property you buy afterwards falls under the new rules, so losses would be quarantined from 1 July 2027.

Can the buyer of my investment property negatively gear it

If it’s an established property and they buy it after Budget night, their losses will be quarantined from 1 July 2027. Grandfathering doesn’t transfer to the buyer.

Should I sell before the CGT changes start on 1 July 2027

It depends on your situation. Selling before 1 July 2027 keeps your whole gain under the current rules and avoids a valuation and apportionment later. It can suit investors already planning to sell and those who bought after Budget night. To be covered, the contract generally needs to be signed before 1 July 2027. Your accountant can model the difference for your property.

Is Kedron still a good suburb for property investors

Kedron’s location, land and owner-occupier demand have long supported growth. The trade-off is lower rental yield, which matters more now that new purchases of established property can’t be negatively geared against wages. It suits investors focused on long-term growth with the cash flow to hold.

Why use a local Kedron real estate agent

A local agent knows which streets, block sizes and home styles buyers are paying for, and who those buyers are. That knowledge shapes your price guide, your campaign and your negotiation.

Our View

The 2026 Budget did not make property a bad investment. It changed the tax settings that influence what some investors buy and why. In established northside suburbs such as Kedron, owner-occupier demand remains important and investors are likely to weigh cash flow more carefully.

If you’ve been thinking about selling in the next year or two, now is the time to plan it. Get your numbers from your accountant, find out what your property is worth and give yourself enough time to sign a contract before 1 July 2027 if that’s the right move for you. Then focus on what you control: who you market to, how you present the property and how much it costs you to sell.

Thinking about selling an investment property in Kedron or Brisbane’s north before the changes? Book a free appraisal with One Percent Property to understand the likely buyer pool, campaign options and current market value. Call 07 3174 0000 or visit onepercentproperty.com.au/contact.

This article provides general information only and is current as at 14 October 2026. It is not tax, financial, legal or planning advice and does not take your circumstances into account. Speak to an appropriately qualified tax agent, financial adviser, solicitor or planning professional before acting.