Negative Gearing Is Changing: Smart Brokers Are Changing With It.

For decades, negative gearing has been a key driver of residential property investment. But with the proposed changes, investors purchasing established residential property after the commencement date will generally no longer be able to offset rental losses against salary and wage income. Existing investments are expected to be grandfathered, while new residential builds are expected to retain traditional negative gearing benefits.

For brokers, this isn't just a tax change. It's a strategic opportunity.

The Broker's Role is Expanding

Today's best brokers do far more than arrange finance. They work alongside accountants, solicitors, financial advisers and buyer's agents to help clients make better investment decisions.

Increasingly, the first question won't be "Which lender should we use?" but rather "How should this property be owned?"

That decision can shape both the client's tax position and their finance options.

More Structures. More Lending Opportunities.

With the right accounting advice, some investors may choose to purchase through a company, trust or other investment entity rather than personally.

Where an investment is held in an eligible non-NCCP entity, brokers may gain access to a much broader range of funding solutions, including:

• Specialist commercial lenders
• Private credit
• Asset-based lending
• Bridging finance
• Value-add funding

Instead of trying to fit every scenario into a residential credit policy, brokers can match the funding solution to the client's overall investment strategy.

Value-Add Investing is Growing

As tax settings evolve, we're also seeing more investors focus on creating equity rather than simply waiting for capital growth.

Strategies such as renovations, dual occupancies, subdivisions and small development projects often require flexible short-term funding before refinancing onto a long-term facility.

This is where specialist lenders and private credit can play an important role.

The Opportunity for Brokers

The brokers who thrive won't simply have the biggest lender panel. They'll be the ones who ask better questions, work closely with accountants and understand when specialist funding may deliver a better outcome.

Negative gearing may be changing, but property investment isn't. Investors are adapting, and brokers who evolve with them will be well positioned to generate new business and build stronger professional referral networks.

Important: Arc Money does not provide taxation or structuring advice. Brokers should encourage clients to obtain independent advice from their accountant or other qualified professional before establishing or changing any ownership structure.