Episode Details

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Munzurul Khan, Chairman of KHI Partners and our resident accountant, joins us again to go back over the May 2026 budget now that the dust has started to settle. We recorded this at the end of September 2026, so some of it will keep moving.

We start with negative gearing. Munzurul explains the 12 May 2026 cut-off, what grandfathered means for properties you already own, and why negative gearing has been quarantined rather than abolished, with exceptions for new builds and commercial property. He also covers converting an owner-occupied home into an investment property, the unresolved edge cases around death and separation, and why losses now sit in one pool with your capital gains.

Then we look back. Munzurul walks through what happened when negative gearing was taken away in 1985 and brought back around 1987, then turns to capital gains tax and the move from the 50% discount back to indexation on 1 July 2027. He does the maths on whether it's fair, why commercial property is getting more attention, and why he tells clients to get a valuation for 30 June 2027 and let their accountant run it both ways.

If you own property, or you're thinking about buying or selling, and the headlines have left you confused, start here.

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TIME STAMPS:

00:00 Intro/Hook

01:48 Season two: why we're revisiting the budget

02:56 Munzurul's first reaction to the budget

04:34 Politics, the numbers in both houses, and why the laws won't change easily

07:35 Negative gearing: before and after 12 May 2026

08:55 Grandfathering and quarantining, with exceptions for new builds and commercial

10:24 Converting an owner-occupied home to an investment property

11:05 Death, separation and the edge cases still unresolved

14:38 One pool: property, capital gains and losses

17:38 What negative gearing actually means (and what happened in New Zealand)

19:25 The 1985 attempt to take away negative gearing

23:47 Rents rising now

24:32 Capital gains tax: the move back to indexation

26:50 Valuing your property on 30 June 2027

28:02 Is it fair? Doing the maths on 50% vs indexation

29:43 Why commercial property is getting more attractive

31:58 CGT items still unresolved: small business and startups

32:39 What happens to your base cost if markets fall

33:43 Why you should still get the valuation

34:19 Conclusion/Outro

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SHOW NOTES LINKS

https://ifdgroup.com.au/

https://doctorbi.com.au/

https://au.linkedin.com/in/mian-bi

https://www.linkedin.com/in/munzurul-khan-7ba6a318

https://khipartners.com.au/

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