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The changes follow the federal government’s overhaul of negative gearing rules, which would remove the tax concession from residential investment properties purchased after 12 May 2026, unless the property qualifies as a newly built dwelling.
Australia and New Zealand Banking Group (ANZ) and Suncorp Bank are among the latest lenders to adjust servicing settings, joining National Australia Bank (NAB), Macquarie, Great Southern Bank, Brighten-backed Connective Horizon, and, to an extent, Westpac and St.George.
ANZ and Suncorp update policy
ANZ has become the latest major bank to update its serviceability calculations, despite the reforms not yet being legislated.
In correspondence seen by Broker Daily, ANZ confirmed investment properties purchased after 12 May 2026 would only be eligible for negative gearing in serviceability assessments if they qualify as new builds.
Existing properties purchased before that date will retain eligibility, while applications not unconditionally approved by close of business on 28 May 2026 may be reassessed under the new criteria.
The lender also confirmed refinance applications for eligible existing properties and new builds would continue to qualify for negative gearing treatment in servicing calculations, although brokers may need to provide additional information where eligibility is unclear.
Suncorp Bank has also updated its serviceability treatment of negative gearing following the proposed tax changes, warning brokers that borrowing capacity outcomes may shift for some investor customers.
The lender said applications not unconditionally approved by close of business on Wednesday, 27 May 2026, would be reassessed under the revised criteria, with negative gearing only applying where the property is deemed eligible.
Suncorp also confirmed deductions against rental income would continue to be included in serviceability calculations, while cashout requests used to improve eligible properties would remain eligible for negative gearing treatment.
Macquarie shifts sooner
Macquarie was the first lender to remove most negative gearing tax add-backs from its serviceability calculator on 18 May.
The bank linked the move directly to the budget’s proposed tax changes and the bank’s responsible lending obligations.
“In light of the Federal Budget, we have made changes to our investor lending policy to ensure we continue to comply with our responsible lending obligations,” Macquarie Bank told Broker Daily sister brand The Adviser.
“These changes help us ensure property investors are able to afford their loan when the changes to negative gearing come into effect.”
The bank also clarified how refinances and investment conversions would be treated under the new settings.
NAB, Great Southern Bank, and Connective Horizon follow
Following Macquarie, NAB also moved to recalibrate servicing calculators on 26 May.
In-flight applications already holding unconditional approval by 26 May will be honoured, while other applications may be reassessed if they rely on post-budget contracts and fail the new-build eligibility test.
“We’re continuing to support customers as they navigate the proposed changes to negative gearing announced in the federal budget,” NAB executive Andy Kerr said.
“While these changes are not yet legislated, they represent a known and foreseeable factor that may affect a customer’s financial position over the life of a loan. As part of our responsible lending obligations, we take foreseeable changes like this into account when assessing serviceability.”
At the same time, Connective Horizon, funded by Brighten, also confirmed it would align servicing policy with the proposed tax changes.
Great Southern Bank similarly updated its policy, confirming investor applications for established residential properties with a contract date after 12 May 2026 would no longer have negative gearing included in servicing assessments.
However, the changes will not apply to established properties purchased on or before 12 May 2026, eligible new-build investment properties, or certain refinance scenarios.
Great Southern Bank also confirmed owner-occupied properties held on or before 12 May 2026 may later qualify for negative gearing in servicing once converted into investment properties, subject to standard credit policy.
Westpac and St.George wait and see
Westpac, meanwhile, told brokers last week its current policy settings remain in place for now, with further changes to be announced once legislation and internal credit assessments are finalised.
For new lending on established investment properties, Westpac indicated it expects negative gearing will not apply to additional lending amounts.
The lender said unconditionally approved loans already in the pipeline would not be reassessed, while conditional approvals and approvals in principle would be assessed under whichever policy is active at the point of unconditional approval.
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