Australia's 2026 federal budget announced proposed changes to negative gearing deductibility for residential property investors. Under the current proposal, negative gearing on existing residential property purchases would be restricted from July 2027, while eligibility for new residential construction would be retained. A capital gains tax indexation option for inflation would also be introduced under the proposal. These are announced policy intentions, not settled law. The final legislative detail, definitional thresholds, and implementation rules have not been fully legislated at the time of writing. Nothing on this page constitutes tax advice, financial advice, or legal advice. Investors with existing portfolios or active purchase decisions should consult a registered tax adviser and a licensed financial planner before acting on any policy-related information. This page describes the proposed changes and identifies research signals relevant to markets where investors may be assessing their policy exposure.
Data vintage: Q1 2025 (indicative). Manually compiled from public sources. Reviewed June 2026. Verify independently. Not financial advice.
19 suburbs · Markets filtered by low or no negative gearing dependence based on indicative cashflow estimates. Policy information reflects 2026 budget announcements, subject to final legislation. Q4 2024 and Q1 2025 data vintage. Research only. Not financial advice.
6.5% gross yield at $385k equals strongly positive cashflow without needing negative gearing. Keppel's $10B AI data centre (Australia's largest announced) remains almost entirely unpriced in local property. Construction worker accommodation demand alone will tighten vacancy before residents follow. Budget policy renders negative gearing irrelevant here.
Tightest vacancy in the scan at 0.7% (effectively full). 6.1% yield at $390k is genuinely positive cashflow. Emerald sits at the intersection of coking coal and agriculture, giving it more diversification than a pure mining town. Discovery status 'Unknown': no institutional attention yet.
Three LNG trains, a dedicated hydrogen export strategy, and a port that handles 100+ million tonnes per year. Yield at 6.1% is cashflow positive. Rent growth +7.5% is second-strongest in the scan. Hydrogen projects add option value on an already-sound investment thesis.
6.0% yield is cashflow positive. Mackay is the service hub for Australia's most productive coking coal basin. FIFO workers create reliable accommodation demand. Vacancy at 0.8% is very tight. $590/wk rent on $515k price sits well in positive cashflow territory.
6.7% yield at $235k, the highest yield-to-price ratio in the scan. The Far West NSW REZ (2.3GW) is creating permanent construction and operational jobs in a town that was in structural decline. Cashflow positive by $3,380/year. Discovery status 'Unknown': no institutional awareness of the REZ catalyst yet.
5.7% yield is cashflow positive. Rocky is one of QLD's largest regional cities with genuine economic diversification: military, agriculture, government services, and retail. Rail upgrade and beef industry investment support medium-term employment stability.
5.7% yield is cashflow-positive at 6.5% rate and improves as rent grows at +5.5%pa. Keppel data centre catalyst is literally next door: Morwell is the primary accommodation suburb for the construction workforce. New build lots available at <$420k all-in, still NG-eligible under budget rules.
6.4% yield on a 30,000-population regional city with Australia's largest open-cut gold mine as anchor employer. Gold price at USD 2,300+/oz makes operations deeply profitable and workforce stable. Rent growth +7.0% outpacing price growth +8.0%. Liquidity is better than typical regional at this price point.
Crisis-level vacancy and strong cashflow without negative gearing. Lowest absolute entry price in the SA scan. Investment thesis is primarily yield-driven, with any steelworks-related upside treated as optional rather than assumed.
$650/wk rent at $490k is one of the best risk-adjusted yield profiles in Australia for a town with genuine long-term employment. Woodside's Pluto LNG trains are 30+ year assets. Cashflow positive by $8,320/yr pre-cost. High income residents make for reliable tenants.
Supply-constrained port city with positive cashflow and declining vacancy. Renewable energy and transmission infrastructure investment continues to support regional economic activity and worker accommodation demand.
8.5% yield, the highest in the scan. $520/wk rent on $320k generates $10,400/yr positive pre-cost cashflow at 80% LVR. Glencore's George Fisher mine extension commits production through mid-2030s. Copper demand in EV/renewable transition provides medium-term mine life visibility.
5.0% yield on Australia's largest inland city (175,000). Inland Rail makes Toowoomba a permanent logistics node: structural demand, not cyclical. Wellcamp Airport's freight capacity is genuinely unique. Vacancy at 1.0% is tight for a city this size.
5.6% yield at $272k (the lowest absolute entry price in the scan) is cashflow positive. Nyrstar's $500M smelter upgrade secures permanent employment. Discovery status 'Unknown' means no institutional competition. Price growth +8.0% already reflecting some catch-up but starting from very low base.
5.0% yield sits just inside cashflow-negative territory but rent growth at +5%pa tips it positive within 2 years. UTAS CBD relocation is a genuine structural demand shift: 10,000+ students moving to walkable CBD precinct. Strong liquidity for a regional city (68,000 population).
6.3% yield at $490k is clearly cashflow positive. The dominant employer (Pine Gap) is a permanent US-Australian defense facility on a 70+ year lease, making it arguably the most recession-proof employment base in the scan. Federal housing investment is improving stock quality.
5.0% yield on a 64,000-population city with Australia's largest tomato processing facility and a $400M hospital rebuild underway. The Food Valley precinct is creating permanent food-tech employment. Rent growth +5.0% will push to cashflow-positive within 18 months.
5.1% yield at the crossroads of three states. Mildura benefits from genuine cross-border rental demand that tightens vacancy independent of any single industry. Hospital expansion creates permanent healthcare employment. Rent growth +5.0% will push to cashflow-positive within 12 months.
Government-backed tenant quality via ADF DHOAS subsidies. Robertson Barracks is a permanent strategic asset. Vacancy driven by ADF rotations not economic weakness.
The markets below carry low or no negative gearing dependence based on current cashflow estimates at standard LVR. This does not mean they are immune to broader investor sentiment changes that may flow from the policy announcement. It means they are markets where positive or near-positive cashflow is achievable at standard LVR and benchmark interest rate assumptions without requiring a tax refund to sustain holding costs. In a post-July 2027 environment where negative gearing on existing property purchases is restricted under the current proposal, markets that already screen cashflow-positive face reduced risk from forced seller activity by investors unable to sustain negatively geared positions. This is a research observation. It is not a prediction about what will happen to prices or demand in any market. All policy references on suburb pages are labelled as subject to final legislation.
Research transparency: SuburbScanner uses a proprietary multi-factor model to rank markets by investor-relevant signals. Read the full methodology →
The proposed legislative changes to negative gearing have not been fully legislated. The final detail, definitional boundaries, and implementation rules may differ from what was announced in the 2026 budget.
The July 2027 proposed commencement date may change during the legislative process. Announced grace period provisions for existing property holders have not been fully defined. Verify the current legislative status with a registered tax adviser.
Changes to investor sentiment, even in anticipation of legislation that has not yet passed, can affect property prices and volumes in ways that are difficult to model.
Cashflow estimates on this platform assume 80% LVR at a 6.5% benchmark interest rate. Your actual borrowing costs, lender terms, and serviceability assessment may differ materially.
This information is general research context only. It is not tax advice, financial advice, or legal advice. Consult a registered tax adviser and a licensed financial planner before making any investment or tax decision.
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