The 2026 Federal Budget changes the tax treatment of negative gearing. Your bank changes something just as important: how much they’ll lend you in the first place.
Lenders calculate borrowing capacity by modelling your future after-tax cash flow on an investment property. When negative gearing disappears from that equation, so does part of your borrowing power. The catch is that each major lender is moving at a different pace. The bank you choose this month can meaningfully change what you can actually buy.
Here’s where each of the major lenders sits right now.
UPDATED
First lender to move on negative gearing serviceability.
Macquarie has already updated its serviceability calculations. Their position: even though the budget isn’t legislated yet, the changes are a “foreseeable change” and responsible lending obligations require them to factor it in today. The policy is already live for all new and in-flight applications.
Hard Deadline 26 May
Hard cutoff at close of business Tuesday 26 May 2026.
NAB has published the most detailed policy of any major lender, with a hard deadline that matters this week. Applications unconditionally approved by close of business Tuesday 26 May 2026 will not be reassessed. After that date, any application with a post-12 May contract that isn’t yet unconditionally approved will be reassessed under the new rules. Updated serviceability calculators drop Wednesday 27 May.
Hard Deadline 28 May
Policy change at 11:59pm AEST Thursday 28 May 2026.
CBA has joined Macquarie, NAB, ANZ and Suncorp in moving on negative gearing serviceability. The cutoff is 11:59pm AEST Thursday 28 May 2026 — slightly later in the day than ANZ’s same-date deadline. Unconditional approvals issued before that time will remain valid. Anything not unconditionally approved by then, including Home Seeker pre-approvals, will be reassessed under the new rules. CBA has also explicitly listed the evidence brokers need to provide to confirm pre-12 May purchase dates.
Holding
Current policy applies until further notice.
Westpac is waiting for the budget measures to pass through parliament before adjusting serviceability. Their current policy applies to new and in-flight applications. Unconditionally approved applications won’t be reassessed retrospectively. Conditional approvals and AIPs will be assessed at unconditional approval under whatever policy applies at that time, which is the only real risk to flag for borrowers currently in process.
Hard Deadline 28 May
Policy change at close of business Thursday 28 May 2026.
ANZ has updated its serviceability assessment with a hard deadline two days after NAB’s. Applications unconditionally approved by close of business Thursday 28 May 2026 won’t be reassessed. After that, any application with a post-12 May contract that isn’t unconditionally approved will be reassessed, and negative gearing will only apply if the property qualifies as a “new build” per ANZ’s assessment. Like Macquarie, ANZ continues to allow rental income deductions in serviceability calculations regardless.
Hard Deadline 27 May
Policy change at close of business Wednesday 27 May 2026.
Suncorp has joined Macquarie, NAB and ANZ in moving on negative gearing serviceability ahead of legislation. Applications not unconditionally approved by close of business Wednesday 27 May 2026 will be reassessed, and negative gearing will only apply where the property meets the “new build” definition. Suncorp’s communication is brief by comparison with the other lenders, so some operational detail — particularly around refinances and PPOR conversion — is yet to be confirmed.
From the banks published guidance. The definition matters for any post-12 May contract not unconditionally approved by 26 May 2026.
Eligible
Not eligible
Lender choice has always mattered. Right now, it matters more than usual. Talk to Madd Loans about which lender is best positioned for the specific play you’re running.
Yes, if the contract of sale was executed on or before 12 May 2026. Properties already owned and contracts dated on or before that night remain eligible for negative gearing. Post-12 May 2026 contracts can only be negatively geared if the property qualifies as a “new build” once the changes are legislated.
The government announced an effective date of 12 May 2026 for the proposed changes. The changes haven’t yet passed parliament, but most major lenders have already factored them into serviceability calculations. The full legislative changes are expected to take effect from 1 July 2027.
A new build is a property that genuinely adds to housing supply. Eligible examples include off-the-plan apartments, duplexes from knock-down rebuilds replacing a single house, and new construction on vacant land. Knock-down rebuilds replacing one house with one house don’t qualify. Neither do extensions or granny flats added to ineligible properties.
NAB has set a hard cutoff of close of business Tuesday 26 May 2026. Applications with a post-12 May 2026 contract that aren’t unconditionally approved by then will be reassessed under the new rules, including AIPs and conditional approvals. New serviceability calculators will be released on Wednesday 27 May 2026.
ANZ requires post-12 May 2026 contracts to be unconditionally approved by close of business Thursday 28 May 2026. Anything not approved by then will be reassessed, with negative gearing only applying if the property meets ANZ’s “new build” definition. ANZ continues to allow rental income deductions in serviceability calculations.
Suncorp’s cutoff is close of business Wednesday 27 May 2026. Applications not unconditionally approved by then will be reassessed under the new rules. Suncorp specifically references the 7:30pm AEST budget night cutoff time, matching the federal announcement timing.
Yes. Macquarie was the first major lender to update its serviceability calculations and the policy is already live for all new and in-flight applications. Post-12 May 2026 contracts only get negative gearing in serviceability if the property qualifies as a new build. Pre-12 May contracts are protected.
Not yet. Westpac’s current serviceability policy applies until further notice. They are waiting for the budget measures to pass through parliament before formally updating. Conditional approvals and AIPs carry timing risk — they’ll be assessed at unconditional approval under whatever policy applies at that time.
Most lenders will reassess your application at unconditional approval under whatever policy applies at that time. Unconditional approvals already in place won’t be reassessed retrospectively. AIPs and conditional approvals are not protected. If you’re holding an AIP for an investment property, talk to your broker urgently.
Yes, if the property was acquired on or before 12 May 2026. Macquarie, NAB and ANZ have all confirmed that negative gearing applies to the original debt used to acquire the property and any debt used for improvements, even after you convert it to a rental. This is sometimes called the PPOR Upgrade Flip strategy.
CBA’s cutoff is 11:59pm AEST Thursday 28 May 2026. Unconditional approvals issued before then remain valid. Anything not unconditionally approved by that time, including Home Seeker pre-approvals, will be reassessed under the new rules. Post-cutoff, negative gearing only applies where the property meets CBA’s “new build” definition.
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