With the May 2026 federal budget approaching, rumors of negative gearing changes are reaching a fever pitch. At The Property Couch, we’ve always said you only need 2 to 3 properties to change your life, but how would a formal cap impact your long-term plan?

Before we get there… Stop the presses! Let’s acknowledge that for the second time in less than a week, we have major breaking news episodes regarding property tax in Australia. Hot on the heels of the Capital Gains Tax debate, we are now looking at a potential “Double Whammy” with new negative gearing reforms currently being modelled by Treasury.

Why is this urgent? The May Budget is just weeks away. We have a very small window of time to ensure the government hears the voice of the everyday investor before these models potentially become policy.

Our Take: Regular listeners of The Property Couch know that we have always advocated for a “less is more” strategy—building a life-changing passive income with just 2 to 3 high-quality properties. On the surface, a “Two-Property Cap” sounds like it aligns with that philosophy and is certainly a better policy than what was proposed in 2019.

But there is a catch. If the government gets the details wrong, they risk spooking the entire market into a dormant state, causing an exodus of rental supply at the exact moment Australia needs it most.

In this special presentation, Ben (as Chair of Property Investors Council of Australia – PICA) breaks down the data and the “Victorian Warning” to explain why we need an open dialogue with Canberra right now.

Missed PICA’s first update on Capital Gains Tax? Join the discussion here: http://www.youtube.com/watch?v=m5zN82Dl0mg

Inside Today’s Video:

  • 00:30 — Why we’re re-sharing this PICA update with you
  • 02:00 — Three things you need to know about negative gearing
  • 03:52 — Does the government actually make money from investors?
  • 06:25 — Exactly how many properties does Australia investors own? (The stats)
  • 10:27 — Why there are fewer rentals on the market right now
  • 12:05 — Four reasons why “Mum and Dad” investors are quitting
  • 13:25 — The rise of buying property in companies and trusts
  • 18:45 — A warning from Victoria: What happens when policy goes wrong
  • 25:55 — The “Two-Property Cap”: What Labor is currently planning
  • 28:30 — Political votes vs. the reality of the housing market
  • 31:00 — PICA’s official stance and how to get a seat at the table

 

Key Takeaways for TPC Listeners:

  • It’s Not a Tax Dodge: Negative gearing is a temporary phase. Most of us end up paying more in income tax and CGT over the long run.
  • The Supply Problem: If the government scares off private investors, who is going to build the homes Australia desperately needs?
  • The “Victorian Lesson”: We’ve seen what happens when you tax investors too hard—rentals disappear and building stops.

This is not the first time PICA and The Property Couch takes an active role in this Negative Gearing debate. (Nor will it be the last we suspect!) If you’re interested in diving deeper into the history and the alternative solutions we’ve proposed, here are some of our key past discussions:

 

Don’t just watch from the sidelines. If you want to protect your financial future and have a say in these policy changes, join PICA.

It’s the best investment you can make for your portfolio.

👉 Join here: https://pica.asn.au