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Property investment

What counts as a "new build" for property investors?

A general explainer on what's typically considered a new build, off-the-plan and house-and-land, and why it matters for investors. Not tax or legal advice.

8 June 2026 · By Foundation Finance · Last reviewed 10 June 2026

What we can — and can’t — advise on

Foundation Finance operates as a credit representative under an Australian Credit Licence. We can advise on the credit product — the loan itself, how it’s structured, and which lenders suit your situation. Whether a self-managed super fund, trust or company structure is right for you is financial product, tax and legal advice, which sits with your licensed financial adviser, accountant or solicitor. This page covers the credit side only.

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.

Who handles what

Getting it right usually means a small team. Here’s who does which part — we’ll gladly work alongside your other professionals.

Us (Foundation Finance)

The loan — structure, features, lender selection, serviceability and the application.

Licensed financial adviser (AFSL)

Whether an SMSF or investing via super suits you, and any financial-product advice.

Registered tax agent / accountant

Your tax position — negative gearing, deductions and CGT for your circumstances.

Solicitor

Legal structures, trust deeds, contracts and asset protection.

Quantity surveyor

An ATO-compliant tax depreciation schedule for your property.

General advice warning: The information on this page is general in nature and factual only. It does not take into account your objectives, financial situation or needs, and is not financial product, tax, credit or legal advice. Tax, superannuation and SMSF outcomes depend on your circumstances — speak to a registered tax agent and a licensed financial adviser before acting. Any estimates or calculator results are indicative only and not an offer of credit, a quote, or a guarantee of approval or savings.

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