A new MFAA webinar has confirmed that investor clients are already flooding brokers with questions about Labor’s capital gains and negative gearing overhaul.
The Mortgage and Finance Association of Australia (MFAA) has said live survey results from a special budget webinar revealed that the vast bulk of members are either already dealing with, or bracing for, a spike in investor inquiries as clients try to make sense of the 2026–27 federal budget.
On Tuesday (26 May), the MFAA hosted a member‑only webinar dissecting the federal government’s tax package, with a particular focus on changes to capital gains tax (CGT) and negative gearing and how they could flow through to borrowing structures, property strategies, and the housing market more broadly.
The session was chaired by MFAA executive, policy and legal, Naveen Ahluwalia, and featured three external specialists: Angie Hicks, partner/principal, global compliance and reporting, at Ernst & Young; Clare Gunning, partner at Radburn Partners; and Cameron Kusher, chief economist at Herron Todd White.
Polling of the 800 participating mortgage and finance brokers run during the webinar revealed that 82 per cent were already receiving, or expected to receive, more questions from property investors as a direct result of the proposed changes.
MFAA CEO Anja Pannek said the association convened the webinar due to the fact that the reforms cut across so many client types and advice scenarios.
“These are complex reforms with the potential to affect a broad range of clients, from investors and business owners through to first home buyers and renters,” Pannek said.
“Bringing together leading experts to work through the detail and put it in context for our members is exactly what the MFAA is here to do.”
Describing what she was hearing from brokers on the ground, she said: “Our members have been fielding questions from clients about what these changes could mean for their investment strategies, their borrowing capacity and their financial futures since budget night.
“We want to make sure brokers have the knowledge and resources they need to have those conversations with confidence.”
Policy signals already flowing into client conversations
A frequent theme throughout the webinar was that, even though the reforms have not yet cleared Parliament, the policy direction had been enough to prompt changes in behaviour.
The panel pointed to lenders beginning to tweak serviceability settings, investors reassessing their plans, and markets trying to price in the likely effects on housing and rental supply.
Sentiment among webinar participants reflected a degree of unease.
A total of 46 per cent of respondents said they felt negative about the changes, while a further 31 per cent said it was too early to tell.
Pannek told members that, given how fast the political landscape was shifting, waiting passively for the final bill would leave both brokers and clients on the back foot.
“The pace at which the political and legislative environment is moving means brokers cannot afford to wait for final legislation before they start preparing,” Pannek said.
“This discussion was timely and important, and the volume of questions from members during the session reflected just how much brokers are already feeling the impact of these proposed changes in their day-to-day client conversations.”
Priority topics for the months ahead
To help brokers channel that concern into concrete actions, the panel outlined a series of areas they believed would dominate client discussions over the next year and beyond.
They said brokers should be ready to explain in plain language how the proposed CGT and negative‑gearing changes could alter after‑tax returns for existing portfolios and new investments.
They also warned that shifting lender policies and serviceability models were likely to affect borrowing capacity, making it important to understand which borrower segments might be most exposed as calculators change.
The experts suggested that many landlords and would‑be investors would need to revisit their overall strategies, including whether to hold or sell certain assets or change the mix of properties they target.
The panel emphasised that where clients used small business entities or family trusts, brokers would increasingly need to prompt them to seek specialist tax advice.
Timing and valuation issues were also flagged as important, with the proposed 1 July 2027 commencement date raising questions around when properties should be valued or restructured ahead of the new regime.
The panel expected more conversations about rentvesting and first‑home‑buyer pathways as investor tax settings evolve.
The speakers said that modelling after‑tax cash flows under different policy assumptions and weighing up whether to refinance, restructure, or consolidate portfolios were likely to become a regular part of investor reviews.
[Related: More lenders announce investor servicing reset]
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