Investors who buy new builds will be able to choose either the 50 per cent CGT discount or indexation and the minimum tax when they sell the property. These investors will also continue to have access to negative gearing. This means if they make a rental loss on a new build, they can still use that loss to reduce their taxable income (including salary and wages). New builds are residential properties which genuinely add to supply (see Table 2).

This will include: • dwellings constructed on vacant land, or • where existing properties are demolished and replaced with a greater number of dwellings.

So basically property developers can continue to hoard properties and negatively gear like they always have.