Operational updates
Federal Budget Update – Negative Gearing Changes
The Federal Government's Budget announced on 12 May 2026 proposed changes to negative gearing. While these changes have been announced, they are still to be passed into law. ANZ's position is based on the proposed changes and takes into account our responsible lending obligations, and may be updated as the proposed changes progress through parliament.
What has been announced?
The Federal Government has proposed the following changes:
- Negative gearing for residential properties purchased after 12 May 2026 will be limited to 'new builds'.
- Existing properties, where the fully executed contract of sale was entered into after 12 May 2026, will not be eligible for negative gearing.
- Existing properties already owned, or where the fully executed contract of sale was entered on or before 12 May 2026, will remain eligible for negative gearing.
What qualifies as a 'new build'?
Examples of what qualifies as a 'new build' as per p6 Federal Budget Tax Explainer 2026-2027
What this means for ANZ applications
ANZ has updated its approach to factoring negative gearing into serviceability assessments, with revised eligibility applying to both new builds and existing contracts. See conditions below.
New Purchase Applications
- Properties where the fully executed contract of sale was entered into on or before 12 May 2026 remain eligible to use negative gearing in our serviceability assessment
- Properties where the fully executed contract of sale was entered into after 12 May 2026 and where the loan application is not approved unconditionally by close of business Thursday 28 May 2026 will only be eligible to use negative gearing in our serviceability assessment where they meet the definition of ‘new build’ as assessed by ANZ.
- Unconditionally approved: No change to applications that have already been unconditionally approved for finance by ANZ
- Applications not unconditionally approved: Applications not approved unconditionally by close of business Thursday 28 May 2026 will be reassessed. Negative gearing will apply only if the property is eligible based on ANZ's assessment.
- Further information may be requested to support eligibility for negative gearing.
Refinance of existing property purchased on or before 12 May 2026, and eligible 'new builds' will still be eligible for negative gearing in our serviceability assessment.
Top-ups and cash out requests will be eligible for negative gearing where the funds are used for the purchase of an eligible property as outlined above or where the funds are used to make improvements to an eligible property.
Important Note: We'll continue to allow deductions against rental income in our serviceability calculations.
What brokers should do now
- Work with customers to understand these changes and what they mean for their financial position, investment approach, and borrowing capacity.
- Confirm whether the application involves an established or newly built investment property.
- Discuss and document an agreed contingency plan where the removal of negative gearing may result in a future serviceability shortfall due to the changes announced on 12 May 2026.
- Reassess serviceability using the updated Home Loan Calculator (HLC) before resubmission, once available, where an impact has been identified.
- Be prepared that:
- Some investment scenarios may require additional information, or
- Serviceability outcomes may change where negative gearing no longer applies.
What's next
We are working through:
- ANZ policy and system impacts
- Note: A new version of the ANZ Home Loan Calculator (HLC) will be released on 28 May 2026, including functionality to support the identification of negative gearing eligibility.
- Broker and customer guidance
Support
If you have any questions, please contact your ANZ RBM
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1800 812 785