✅ 1. Key Changes (Very Important)

    From 1 July 2027:
     👉Negative Gearing
        • Allowed only for new residential properties
        • Not allowed for existing (old) properties
     👉Capital Gains Tax (CGT)
        • 50% discount removed
        • Replaced with:
        • Inflation adjustment (indexation)
        • Minimum 30% tax on gains

✅ 2. Negative Gearing – Simple Explanation

     👉 Current rule
        • If rent < expenses → loss
        • Loss can reduce salary income (tax benefit immediately)
     👉 New rule (from 2027)
        ✔ For NEW houses
         • Same benefit continues
         • Loss can reduce salary

        ❌ For OLD houses
         • Loss cannot reduce salary
         • Can only reduce:
         • Rental income
         • Capital gains
         • Extra loss → carry forward to future

         ✅ Example
         • Loss = $15,000
         • Earlier → reduce salary
         • Now → use only against property income later
         👉 Meaning:
         • Tax benefit is delayed, not immediate

✅ 3. Important Cut-off (Grandfathering)

         • Properties owned before 12 May 2026 → ✅ No change (old rules continue)

✅ 4. CGT Reform – Simple Explanation

        👉 Old system
         • If asset held > 12 months:
         • Only 50% of gain taxed

        👉 New system
         • Step 1: Adjust for inflation: Increase cost price using CPI
         • Step 2: Calculate real profit: Only tax real gain (after inflation)
         • Step 3: Minimum tax rule: At least 30% tax on gains

         ✅ Example
         • Buy = $100
         • Sell = $125
         • Inflation-adjusted cost = $113
         • Taxable gain = $12 (not $25)

✅ 5. Transitional Rules (Very Important for Clients)

         👉 Negative Gearing
         • Old properties before 12 May 2026 → continue forever
         • Bought between May 2026–June 2027 → allowed temporarily
         • Bought after 1 July 2027 → not allowed
         👉 CGT
         • Before July 2027 → old rules
         • After July 2027 → new rules
         • Mixed period → split calculation (before & after)

✅ 6. Special Benefit for New Properties

          If you invest in new builds:
         • Negative gearing allowed
         • For CGT you have choice:
         ✔ Old 50% CGT discount OR
         ✔ New indexation system
          👉 This is a big advantage

✅ 7. What is a “New Build”?

         ✔ Allowed:
         • New apartment (first sale)
         • Construction on empty land
         • Knockdown rebuild with more houses
         ❌ Not allowed:
         • Renovation without increasing supply
         • Old properties resold
         • Property used for more than 12 months before sale

✅ 8. Other Important Points

         • Main residence → still fully exempt from CGT
         • Commercial property → no change
         • Affordable housing → extra benefits continue
         • SMSFs → mostly excluded from these negative gearing changes

✅ 9. Overall Impact (Simple)

         • Investors get:
           ❌ Less tax benefits on old property
           ✔ More benefit investing in new property
         • Government expects:
         • More home buyers
         • Slight slowdown in price growth
         • More housing supply