12/05/2026
Womp womp 😬
Tonights budget was a flop that really won’t bring any drastic change to wealth inequality and especially won’t influence the property market in a big way.
Negative gearing reform is not retrospective and will only affect new purchases of established property outside of trusts and companies. So existing investors need not worry.
Capital Gains Tax will now be calculated using a model that accounts for inflation via the Consumer Price Index, rather than the floating 50% discount. This affects all assets, not only property, and simply incentives investors to avoid selling, which won’t create any additional supply. Longterm hold and refinance strategies will become more popular moving forward.
Rents will continue to grow as the overheads of Rental Providers continue to increase and additional supply will only come briefly from incorrectly structured or under resourced investors bailing out.
Homeowners may find slowed competition in established markets, but will now face increased competition with new negative gearing investors flocking to new builds.
The sweeping reforms apply to all classes of investments (ETFs, stocks, property, collectibles) so will not incentivise property investors to move towards other asset classes.
Not only do all the politicians own property, programs such as the First Home Owners Guarantee Scheme has seen the Government become one of the biggest property investors in Australia. They will promise the world, but none of them will ever take actual action that will threaten the real estate market.
Is it unfair? Yes. Will it change? No. So learn the rules, adopt the strategies, and play the game.
The only people who should be nervous or worried about tonights announcements are people who already hold bad investments and the inexperienced Buyers Agents who have been multiplying like locusts over the last 2 years.
If you want to know what we are doing with our own portfolio or if you want help with yours, give us a call 🐸
