Established, bought after 12 May 2026
Negative gearing ends 30 June 2027. Losses carried forward. New CGT method applies.
Brett Coombs
Auta Group · Project Marketing + Luxury Apartment Sales
Free investor guide · Adelaide CBD · 2026 edition
From July 2027, negative gearing belongs to new builds. Here's what that means for a Franklin Tower apartment.
A numbers-first guide for investors and their advisers: current Adelaide rents and yields, worked cashflows at today's rates, the Airbnb case for a two-bedroom, and a plain-English breakdown of the negative gearing and CGT reforms now law.
- Worked cashflow examples — one-bed from $600,000 and two-bed at $900,000, modelled at 6.5%
- The 2026 tax reforms: what's grandfathered, what's quarantined, and why off-the-plan is the exception
- Short-stay income modelling for an unrestricted CBD building
- Risks, mitigations and an eight-point due diligence checklist
0.7–1.2%
Adelaide rental vacancy
Tightest mainland capital; national ~1.9%
$571
Median unit rent / week
Up ~4% year on year
5.0–5.5%
Indicative gross yield
Long-term lease; 6–9% on short-stay
1 Jul 2027
Reforms commence
Negative gearing reserved for new builds
What changed
Two tax rules, one clear winner
The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 passed the Senate on 25 June. From 1 July 2027, rental losses on an established dwelling bought after 12 May 2026 can no longer be offset against your salary — they're quarantined against future property income. The 50% CGT discount is replaced by CPI indexation with a 30% minimum rate.
New residential dwellings — including apartments bought off-the-plan — keep full negative gearing and get to choose between the 50% discount and the new method at sale. The guide walks through exactly how the definitions work, what "first owner" means, and the timeline you need to know.
Owned before 12 May 2026
Grandfathered. Negative gearing continues; new CGT rules apply only to post-2027 gains.
New build / off-the-plan
Full negative gearing retained. CGT: investor's election. Full Div 40 + 43 depreciation.
The building
Franklin Tower, Adelaide CBD
Twenty-three levels of one- and two-bedroom apartments in the centre of the CBD, priced from $600,000, walkable to the hospital, university and BioMed precincts that supply Adelaide's most reliable tenants.
Off-the-plan settlement of roughly 12–24 months gives you a planning window — lock today's price, arrange finance, and align settlement with your income events — while qualifying as a new build under the 2027 rules.
Short-stay permitted
The strata rules place no restriction on short-term letting. Adelaide's short-stay market runs at 62–72% occupancy with listings down ~39% year on year. The guide models a two-bedroom at $260–320 a night against a twelve-month lease so you can see both sides.
Your adviser on this project
Brett Coombs
Fourteen years in Australian real estate across luxury, off-the-plan and investment property, now leading project marketing for Auta Group. Brett works with investors and their accountants to model the numbers properly before anyone signs anything — and is equally happy to tell you when an apartment isn't the right fit.
Adelaide, South Australia · [email protected]
Prefer to talk it through?
A focused 30-minute investor strategy call: your position, your goals, and whether Franklin Tower fits. No obligation.