Key takeaways
58% of investors want a clearer explanation of how the proposed property tax changes may affect their personal circumstances.
84% of surveyed investors said they were uncertain about what to do next following the Federal Budget.
Many investors are pausing decisions while they seek advice and wait for more clarity on the proposed changes.
Aussie research found understanding the new investor rules was the most important factor influencing future decisions.
Speaking with an Aussie Broker, accountant or adviser may help investors better understand their options.
For many Australians considering property investment, the biggest challenge right now isn't finding the next opportunity. It's understanding what the 2026 Federal Budget's proposed tax changes could mean for them.
While much of the conversation since the Budget has focused on whether investors will leave the market, new Aussie research suggests many are still trying to understand how the proposed changes could affect their plans.
A new Aussie Investor Post-Budget Research Survey of 399 prospective Australian property investors found that 84% were uncertain about what to do next, while 79% said they felt confused about how the proposed changes could affect them.
More than half (58%) said the most helpful thing right now would be a clear explanation of how the proposed reforms apply to their personal circumstances, ranking ahead of help finding a new-build investment or better lender options.
Under the proposal, negative gearing would be limited to eligible new-build properties purchased after 1 July 2027, while capital gains tax (CGT) arrangements would also change for future investments, if the legislation proceeds.
Existing holdings would be grandfathered under the government's proposal.
Aussie Buyer's Agent John Stratton said some investors who had sought professional advice were still proceeding, but were focusing on fundamentals rather than tax settings alone.
“It came back to the standard fundamentals of the asset,” he said. “What type of property are we buying? What are the future plans? Why are we buying it?”
Importantly, Stratton noted the proposed changes are not yet law.
“So, until that is actually implemented, there are going to be people sitting on the fence and waiting for clarity around how they're going to approach things,” he said.
Aussie Belmont broker Nick Jones said he's seeing similar behaviour among investors who had already been preparing to buy.
"I've probably had about 10 people over the last two weeks since the budget came out email me and say, 'We've already got the pre-approval in place, but we're going to sit tight for 6 months and wait and see what happens.'"
For many investors, the uncertainty isn't just about tax. It's about how the proposed changes could affect borrowing power, cash flow, and the types of properties they may be able to afford.
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Common areas of confusion for investors
More than 4 in 5 survey respondents said they felt uncertain about what to do next, while almost 8 in 10 described themselves as confused.
Nathan Rigney, director of NGR Accounting, said much of the confusion stems from investors misunderstanding what is actually changing.
“The biggest confusion I'm seeing is that many people think negative gearing is gone altogether,” he said. "There is also a lot of confusion around capital gains tax. Some people think the CGT discount is simply gone."
Rigney said investors should be careful not to assume the proposed changes will affect everyone in the same way. He said confusion itself can sometimes become part of the challenge.
"The real risk is not just the policy change itself; it is people making financial decisions based on half-understood information,” he said. “Personalised advice is critical because everyone's circumstances are different.
“You could have a 40-year-old couple buying their first investment property because they don't own a home yet, and another 40-year-old buying their first rental property while already owning their own home.”
An Aussie Broker can help you understand your borrowing power and compare different loan products, while a qualified tax professional can explain how proposed tax reforms may apply to your specific financial circumstances.
Why understanding the details matters
Property investment decisions are rarely driven by a single factor.
While proposed tax changes may influence investment decisions, many investors also consider factors such as interest rates, borrowing capacity, rental demand, cash flow and long-term financial goals.
That's one reason why many investors are taking time to understand how the proposed reforms could affect their own circumstances before making decisions.
Understanding the details may help investors separate what has been proposed from what has already become law and make decisions based on their own goals and financial situation.
Why uncertainty is becoming part of the investor conversation
Major policy changes often create a period where buyers and investors reassess their plans.
AMP chief economist Shane Oliver said it was understandable that many investors were taking a wait-and-see approach while they worked through “a lot of uncertainty”.
Oliver said some investors may be reassessing future opportunities because the proposed changes could alter the after-tax returns available from property investment.
“The tax environment is less favourable for property investors, and some investors may look for a more attractive entry point,” he said. “You can see why investors might hold back for a while.”
The renewed focus on investment returns comes as positive cash flow property remains relatively uncommon.
New Cotality analysis found just 0.8% of Australian suburbs currently provide positive cash flow under typical lending assumptions, highlighting why many investors have historically prioritised capital growth over rental income.
Source: Cotality, reported by Mortgage Professional Australia, 11 June 2026
As Research Director Tim Lawless noted, rental yields may become increasingly important if the proposed changes proceed, but genuinely cash-flow-positive opportunities remain difficult to find.
Investors may find that identifying cash-flow-positive opportunities requires additional consideration of local market conditions.
Oliver said the broader relationship between investor activity, housing affordability and rental supply is complex. While fewer investors may create opportunities for some owner-occupiers and first-home buyers, reduced investor activity could also affect rental supply over time.
For buyers, that may mean less competition in some parts of the market. However, local conditions, housing supply, and borrowing capacity are still likely to play a significant role in affordability.
For Australians trying to decide whether to buy, invest or wait, the key takeaway may be that policy changes rarely affect everyone in the same way.
You might also be interested in: What the 2026 Federal Budget means for the rental market
Investors are considering new builds, but many remain cautious
One of the more surprising findings from the research was how little awareness there appears to be around the proposed new-build exemption.
Survey finding investors: | Result |
|---|---|
Heard of and understood the exemption | 24% |
Hadn't heard of it at all | 61% |
Considering shifting to new-build property | 46% |
Actively pursuing a new-build strategy | 7% |
Source: Aussie Investor Post-Budget Research, June 2026
While many investors appear open to the idea of new builds, far fewer are actively pursuing them.
PRD chief economist Dr Diaswati Mardiasmo said part of the hesitation may reflect ongoing concerns about the construction sector.
“There might still be uncertainties in the construction sector,” she said. "We know there are quite a few projects that have been deferred or delayed.”
She said some investors remained cautious following a period where builder insolvencies, project delays and construction issues received significant attention.
“Sometimes you do have quite a long lag time before you can even see the property that's going to be built,” she added.
Investors considering new builds may need to weigh factors such as construction timelines, developer risk, quality considerations and their own financial circumstances before making a decision.
Some investors are reassessing, others are adapting
While uncertainty remains high, industry professionals say many investors are still actively exploring their options.
Patrick Boyce, an Aussie Buyer's Agent, said one of the most common questions he's received since the budget announcement has been straightforward.
“I had pretty much all my investor clients messaging me on the spot saying, 'What does this mean for me now?',” he said.
He said many investors were not necessarily abandoning property plans altogether but were seeking more information before committing.
“I've definitely had a lot of clients ask questions,” he said. “Most of those clients are happy to just pause for a couple of months to see how it's going to play out.”
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Marianna Agostino, financial consultant at Conscious Wealth Creation, said some investors were now reviewing strategies that had been years in the making.
“The strategy you had on 1 May is likely no longer the strategy you need to achieve your goals,” she said.
The survey suggests many investors are reviewing their options rather than rushing into a new strategy. Depending on their circumstances, that could mean considering a new build, delaying a purchase or sticking with an existing plan.
Oliver added misconceptions about how the proposed changes would apply remain common.
“One of the most common misconceptions is people who already have shares thinking they're going to be taxed under the new capital gains tax rules. Whereas in reality, if they were to sell their shares today, or even in 12 months' time, they'd still be subject to the old rules,” he said.
This highlights why many investors may be seeking professional guidance before making decisions based on headlines alone.
An Aussie Broker conversation can help investors understand how different lending scenarios may affect borrowing power, while accountants and qualified tax professionals can help explain how proposed tax changes may apply to individual circumstances.
Together, that can help investors assess whether an existing strategy still aligns with their goals or whether adjustments may be worth considering.
Questions investors may want to ask before making a decision
While every investor's situation is different, the research suggests many people are still working through how the proposed changes could affect them.
If you're weighing up your next move, it may be worth considering:
Would the proposed changes affect an investment I'm already planning, or only future purchases?
How important are tax outcomes compared with factors such as cash flow, rental income, and long-term growth potential?
Has my borrowing capacity changed since I last reviewed my options?
Would waiting for greater policy certainty change my plans, or simply delay them?
Have I spoken with a tax professional about how the proposed reforms could apply to my circumstances?
Taking the time to work through these questions may help provide greater clarity, regardless of whether you're actively looking to invest or reassessing existing plans.
What investors can do next
If you're unsure how the proposed changes could affect your plans, it may help to:
Understand which proposed reforms could apply to your circumstances
Speak with an accountant or tax professional about potential tax implications
Review your borrowing capacity and lending options
Consider how any investment fits within your long-term financial goals
Understanding your position before making a move
Property decisions are rarely driven by tax considerations alone. Borrowing power, household cash flow, interest rates, property prices and long-term financial goals can all play a role in determining whether an investment stacks up.
That's why many investors appear to be focused on understanding their options before making any major decisions.
While the policy debate continues, investors still have decisions to make around borrowing, budgeting and long-term planning.
An Aussie Broker can help investors understand their borrowing power, compare lending scenarios and assess how different property decisions may affect their plans.
Accountants and qualified tax professionals can help explain how proposed tax changes may apply to individual circumstances.
For now, the survey suggests many investors aren't necessarily looking for a new strategy. They're looking for enough clarity to understand their options and decide what comes next.
