11/05/2026
THINKING OF BUYING? This Tuesday might be the most expensive day to wait. ⏳
With the Federal Budget being handed down tomorrow night (Tuesday, 12 May), the "grandfathering" clock is ticking for property investors and buyers.
The Rumor: Treasurer Jim Chalmers is expected to announce a shakeup to the Capital Gains Tax (CGT) discount.
The $1 Million Math:
Let’s say you buy an investment property today for $1,000,000 and sell it in the future for a profit of $300,000.
✅ Sign BEFORE 7:30 PM Tuesday: Under current rules (50% discount), you only pay tax on $150,000 of that profit.
⚠️ Sign AFTER Tuesday Night: If the rumored 33% discount is introduced, you could be taxed on $201,000 of that same profit.
The "Hesitation Tax": Waiting just 48 hours to sign a contract could effectively cost you an extra $18,000 - $25,000 in future tax when you eventually sell. 💸
Why it matters NOW: Historically, when tax laws change, properties already under contract are "grandfathered"—meaning they keep the old, better rules. If you’ve found the right place, signing the contract today locks in your tax position before the rules potentially change forever.
What about Victoria?
While Canberra talks tax, the Victorian Government has already confirmed its 2026-27 budget settings. Land tax remains high, but off-the-plan concessions have been extended—making now a unique window for those looking at new units or townhouses.
The Bottom Line: Don’t let a few days of indecision turn into a five-figure tax bill down the road.
