Negative gearing received much of the attention following the 2026 Federal Budget, but another major change could have significant implications for property investors: capital gains tax is changing too.
From 1 July 2027, the Government intends to replace the existing 50% CGT discount for individuals, trusts and partnerships with cost-base indexation and introduce a minimum 30% tax rate on real capital gains.
The changes are prospective: the existing discount continues to apply to eligible gains accruing before 1 July 2027, while the new arrangements apply to gains accruing after that date. Eligible new builds receive special treatment, with investors able to choose between the existing 50% discount and the new arrangements.
For investors, that’s a substantial change. But it also highlights an important distinction: tax treatment affects your return. It doesn’t create the property’s capital growth.
Nobody can guarantee future capital growth. However, property values are ultimately influenced by supply and demand.
These aren’t questions about tax. They’re questions about the asset.
One factor investors sometimes overlook is the person who may eventually purchase their property.
You may buy a property as an investor today, but your future buyer doesn’t necessarily have to be another investor.
An established house with good land, a functional floorplan, access to quality schools and strong lifestyle amenities may attract families. A well-positioned villa might appeal to downsizers. A low-maintenance property near employment and transport may appeal to professionals.
Broad buyer appeal can matter when it comes time to sell.
Tax legislation can and does change. The 2026 Federal Budget is a perfect example.
A property, however, may be held for ten, fifteen or twenty years. Trying to predict exactly what the tax system will look like when you eventually sell can therefore be difficult.
That doesn’t mean investors should ignore taxation. It means tax planning and property selection should be treated as related but separate disciplines.
Your accountant or tax adviser can help you understand the tax implications. Acquire Buyers Agency can help you investigate the property.
We can’t control future governments. We can’t control future tax policy. We can’t control interest rates. And we can’t guarantee future property prices.
What we can help you control is the quality of the research behind your purchase and the price you ultimately agree to pay.
At Acquire Buyers Agency, we research Perth markets, identify suitable opportunities, assess properties, analyse comparable sales and negotiate on behalf of our clients.
A buyer’s agent doesn’t control the tax system. What we can help control is what you buy and what you pay for it.
And in a changing investment environment, that distinction matters.
Start your Perth property search with Acquire Buyers Agency
DISCLAIMER: Technical tax details should be checked against current Australian Government/Treasury guidance immediately before publication, as implementation details may change.
