Australia’s property market is entering a new phase, with major Capital Gains Tax (CGT) and negative gearing reforms set to reshape how investors assess long‑term value from 1st July 2027. For buyers considering where to invest next, these changes put a sharper focus on new residential supply, longer holding periods and projects that combine strong lifestyle appeal with enduring property value.

The CGT and negative gearing reforms will influence how many buyers and investors think about timing, product selection and location, while underscoring the importance of high‑quality new builds. From 1st July 2027, the current 50% CGT discount is expected to be replaced by an inflation‑based discount with a minimum 30% tax on gains, and full negative gearing will continue for new builds but become more restricted for established properties purchased after Budget night. For customers considering projects such as Caddens, TB.W Waterloo and Keynote Residences Beecroft, this points to well‑located new residential developments sitting on the more favourable side of the new policy settings, while still delivering the lifestyle and design outcomes that owner‑occupiers and investors are looking for.

What Are The Key CGT Policy Changes?

The key features of the CGT policy change can be summarised as follows:

• The current 50% Capital Gains Tax (CGT) discount will be replaced with a discount based on inflation (indexation).
• A minimum 30% tax will apply to capital gains under the new system from 1st July 2027.
• The reforms will only apply to gains arising after 1st July 2027, so gains built up before that date will continue under existing CGT rules.
• Investors in new builds will be able to choose between keeping the 50% CGT discount or switching to the new inflation‑based arrangements.
• CGT outcomes will increasingly depend on how long an asset is held and how inflation affects its indexed cost base, particularly for long‑term investors.

Taken together, these changes push investor focus toward long‑term, policy‑aligned assets, particularly new builds, and reinforce the importance of carefully considering structure, timing and overall strategy when planning future property purchases.

Negative Gearing Refocused

The key changes to negative gearing can be summarised as follows:

• Existing arrangements will remain unchanged for all properties held before Budget night, so current investors keep the rules they already have.
• Investors who buy new builds after Budget night will still be able to deduct rental losses from other income, including wages.
• Investors who buy established housing after Budget night will still be able to deduct losses, but only against residential property income (such as rent) rather than broader income sources.
• Any unused losses from established housing purchased after Budget night can be carried forward to future years, where they can be applied against future residential property income or capital gains, but they will not be able to be deducted against other income like wages.

Overall, the revised rules ensure full negative gearing remains available for new builds, while progressively limiting how established properties purchased in the future can be used to offset non‑property income.

Caddens: A Timely Opportunity For Investors

In light of the CGT and negative gearing changes, the upcoming duplexes and terraces at Caddens offer a well‑timed opportunity for investors seeking new‑build advantages in a growth corridor. As part of Westwood Estate at 46-66 O’Connell Street, this masterplanned neighbourhood has been curated by HYG Property Group, one of the leading residential developers Sydney investors look to for high‑functionality homes in emerging locations.

Key features of Westwood Estate and the upcoming Caddens homes include:

• Exclusive land release by stages within a new masterplanned residential neighbourhood.
• Torrens title duplexes and terraces in a community scheme, giving investors ownership of both the land and dwelling.
• Land parcels sized for practical, family‑friendly layouts that appeal to both renters and future owner‑occupiers.
• A location opposite Caddens Corner Shopping Centre, with everyday retail, services and dining on the doorstep.
• Convenient access to Western Sydney University, schools, hospitals and major employment hubs.
• An elevated Western Sydney setting with a strong sense of community and long‑term growth potential.

For investors comparing options from apartment property developers and townhouse specialists, Caddens stands out by combining Torrens title land, new‑build status and a well‑connected Western Sydney address. This alignment with the new tax settings, together with the design‑led approach of HYG Property Group as one of the best property developers Sydney has to offer, positions the Caddens duplexes and terraces as a compelling choice for long‑term, policy‑aligned investment.

To find out more, call 1800 989 769 and speak with a member of our team today.

TB.W Waterloo & Keynote Residences Beecroft

Alongside Western Sydney growth corridors like Caddens, HYG Property Group also delivers new‑build opportunities in established, high‑amenity suburbs such as Waterloo and Beecroft. These projects show how leading apartment property developers and residential developers Sydney-wide can balance design, connectivity and long‑term demand in tightly held village locations.

TB.W Waterloo – Inner‑city boutique living

Key features of TB.W Waterloo include:

• Boutique apartment residences along Botany Road in a mid‑rise format that suits the character of inner‑city Waterloo.
• Rooftop and communal spaces that support a connected, urban lifestyle close to dining, retail and employment hubs.
• Proximity to the CBD and key transport links appeals to professionals and city‑based tenants.
• Contemporary layouts and finishes that reflect the expectations of modern apartment buyers in one of Sydney’s most dynamic precincts.

Call 1800 989 769 to find out more.

Keynote Residences Beecroft – Village living on the North Shore

Key features of Keynote Residences Beecroft include:

• A mixed residential and retail building at Wongala Crescent, bringing new apartments and ground‑floor shops to the heart of Beecroft.
• Around 34 well‑appointed apartments designed to complement the village streetscape and leafy North Shore setting.
• A short walk to Beecroft train station, local schools and everyday amenities, supporting strong appeal for both owner‑occupiers and renters.
• Modern apartment design from one of the best property developers Sydney has to offer, in a suburb where new supply is limited.

Call 1800 168 866 to find out more.

Together, TB.W Waterloo and Keynote Residences Beecroft demonstrate how HYG Property Group delivers policy‑aligned new stock in both emerging and established locations, giving investors options that sit comfortably within a long‑term, CGT‑ and negative‑gearing‑aware strategy.

About HYG

Recognised among the best property developers in Sydney, HYG is dedicated to delivering residential and commercial projects that balance lifestyle, quality and long‑term growth. As one of Sydney’s leading residential and commercial property developers, HYG focuses on crafting sustainable, low‑maintenance spaces that feel considered from every angle and help foster a genuine sense of community.

Ready to bring your next project to life with a trusted development partner? Turn your vision into reality and get in touch with HYG today.