07/05/2026
• Another rate hike is live. The RBA met 5 May and raised the cash rate by 25bp to 4.35% in an 8–1 vote. That's three hikes in 2026, following the move to 4.10% in March.
• Inflation: headline number up, underlying measure steady. Q1 2026 CPI came in at 4.6% annually, almost entirely driven by a 33% fuel price surge. The trimmed mean (the RBA's preferred measure) held at 3.3%, unchanged, still above the 2–3% target band.
• The budget is days away and negative gearing is on the chopping block. The government is expected to abolish negative gearing for new investment purchases and replace the 50% CGT discount with indexation. Nothing legislated yet, but the direction seems pretty clear.
What this means for landlords right now: Holding costs are rising, but rental demand remains strong. The structural shortage hasn't changed. We would forgive the Government for not going through with changes to CGT and negative gearing and more so if these measures were outlined in the leadup to the last federal election , but it seems that they are pretty focused on the change and less concerned about the consequences
