With negative gearing changes proposed for properties bought after 1 July 2027 — and new builds expected to remain eligible — "is this a new build?" has become an important question. This is a general explainer only; the precise definition that matters for tax purposes will depend on the final legislation and your circumstances, so confirm with a registered tax agent.
Common categories investors consider
- House-and-land packages — you buy the land and contract to build a new home, usually financed with a construction loan that draws down in stages.
- Off-the-plan — you buy a property (often an apartment or townhouse) before or during construction, settling once it's complete.
- Newly built / never lived in — a completed dwelling that has not previously been sold as a place of residence or occupied.
The exact boundaries (for example, how "substantially renovated" or "newly built" are defined for a given rule) are set by legislation and ATO guidance and can change — don't assume; verify.
Why it matters for depreciation
New builds typically maximise depreciation because both Division 43 capital works and eligible new Division 40 plant & equipment can be claimed (second-hand residential plant generally can't be, since the 9 May 2017 changes). A registered quantity surveyor quantifies this in an ATO-compliant schedule — try our depreciation estimator for an indicative figure, then get a proper schedule.
The finance angle
Each category is financed differently — house-and-land and off-the-plan have specific timing, valuation and progress-payment considerations. That's our lane: see new-build & house-and-land investment finance.
For whether a specific property qualifies under the tax rules, and what it means for your situation, speak to your accountant. Talk to us about the loan.