What does the 2026–27 Federal Budget mean for real estate agents?

By Jerome Boutelet, Executive Head of Government Relations at InfoTrack

At a glance: What real estate agents need to know

  • Negative gearing settings are being adjusted for future investment property purchases, with a stronger focus on new housing supply.
  • Capital gains tax treatment for investment property is expected to change from 1 July 2027.
  • First home buyer support is being expanded to improve access to home ownership.
  • Housing supply initiatives aim to unlock additional homes through infrastructure and planning reform.


The 2026–27 Federal Budget introduces some of the most significant housing and property related reforms in recent years. While much of the public discussion has focused on tax changes and housing affordability, the more important question for real estate professionals is: how will these changes influence buyer behaviour, investor activity, listing decisions, and future housing supply?

The reality is that most buyers and sellers will turn to their agent for guidance on what the Budget means for their next move.

Looking beyond the headlines, here are the key changes agents should be paying attention to and what they could mean for the property market over the coming years.

What are the key property market shifts from the 2026–27 Federal Budget?

The Budget introduces several policy changes that will influence housing demand, investment behaviour, and long-term supply conditions in the Australian property market.

Rather than creating a single uniform market response, these measures are expected to affect different segments in different ways.

Key shifts include:

  • Changes to negative gearing arrangements influencing future investor decisions
  • Capital gains tax adjustments for investment property from 1 July 2027
  • Expanded first home buyer support increasing entry level demand
  • Infrastructure and planning reforms supporting increased housing supply

Together, these changes are expected to reshape how investors allocate capital, how first home buyers enter the market, and how supply flows through development pipelines over time.

For real estate agents, the key point is that these reforms will not move the market in one direction. Instead, they will influence behaviour across multiple segments simultaneously.

How could negative gearing and capital gains tax changes influence investors?

The Budget proposes significant changes to how future investment property purchases are treated for tax purposes, with a clear policy objective of encouraging investment into new housing supply.

While existing investment properties are generally expected to remain unaffected under transitional arrangements, future investment decisions may be influenced by changes to negative gearing and capital gains tax settings from 1 July 2027.

For agents, the biggest takeaway is not that investors will disappear. It is that investor behaviour may change.

Some investors may become more selective about established property purchases, while others may place greater emphasis on new builds and off the plan opportunities. Existing investors may also take a longer-term view of their portfolios, particularly where current arrangements remain protected.

What could agents expect to see?
  • Increased investor interest in new developments and new build stock
  • More strategic conversations around holding versus selling
  • Longer decision making timeframes for investment property owners
  • More investor questions during appraisals and listing presentations

This creates an opportunity for agents to become a source of market insight, helping clients understand changing conditions while encouraging them to seek independent financial and taxation advice where required.

How could first home buyer support affect demand?

The Budget also includes measures aimed at improving access to home ownership and supporting more first home buyers into the market. For many agents, this could be one of the most important market shifts to watch.

If participation increases as intended, demand may strengthen in entry level property segments, particularly apartments, townhouses, and more affordable detached homes.

This could be particularly relevant in major metropolitan markets and growth corridors where affordability remains a key challenge.

What could agents expect to see?
  • More first home buyers attending inspections and open homes
  • Increased enquiry in entry level price brackets
  • Stronger competition for affordable properties
  • Greater demand for guidance throughout the buying process

Many first home buyers are not just looking for a property; they are looking for confidence and clarity. Agents who can simplify the buying journey and explain the process clearly may be well positioned to build trust and win referrals.

How could housing supply initiatives reshape local markets?

Alongside demand side measures, the Budget includes initiatives designed to increase housing supply through infrastructure investment, planning reform, and faster delivery of new housing projects. While these reforms will take time to flow through, they are intended to help unlock additional housing and support future development activity.

For agents operating in growth corridors across capital cities, this is an area worth watching closely.

What could agents expect to see?
  • Increased developer activity in growth areas
  • More house and land opportunities coming to market
  • Greater visibility of future housing pipelines
  • Stronger buyer interest in infrastructure backed locations

Agents who understand where growth is occurring and how infrastructure investment is shaping local markets may gain an advantage when advising buyers and sellers on future opportunities.

What does the Budget mean for real estate agents?

The most important impact of the 2026–27 Federal Budget is not any single policy change, but how it may influence behaviour across different parts of the property market.

Investors, first home buyers, developers, and owner occupiers will all respond differently over time. As those behaviours shift, agents can expect to see changes in demand patterns, listing activity, investment decisions, and development opportunities.

The real advantage will sit with agents who can interpret these changes and translate them into practical guidance for clients.

Clients will increasingly want to know:

  • What does this mean for property values?
  • Should I buy, sell, or hold?
  • Will investor demand change?
  • Is now the right time to enter the market?

These questions are not about policy in isolation. They are about what policy means in practice for property decisions.

And that is where real estate agents add the most value, by translating policy change into clear, confident market insight that supports better client decisions.

Disclaimer

This article is intended as a general overview of selected 2026–27 Federal Budget measures and does not constitute legal, financial, taxation, or investment advice. Real estate agents should encourage clients to seek independent professional advice regarding their individual circumstances.