Residential and Commercial Property Under the New Tax Rules
The 2026 Federal Budget proposes major changes to how property investment is taxed, but the impact is not uniform across the market.
While much of the early attention has focused on the proposed restriction of negative gearing for established residential property, the broader overlay is the proposed rewrite of the capital gains tax (CGT) regime from 1 July 2027, including the replacement of the 50% CGT discount with cost base indexation and a 30% minimum tax on real gains.
While legislation is yet to be finalised, the policy direction is clear: established residential property is becoming less concessionally taxed, while new housing supply remains comparatively favoured.
In collaboration with Realmark Group, this newsletter also incorporates on-the-ground observations from the Perth property market, highlighting how proposed tax changes may interact with supply, demand and investor behaviour in practice.
This newsletter is current as of 21 May 2026, however, please note that announcements and changes are being made by the Government and the ATO regularly, and we expect that the tax and business-related responses will continue to evolve. Before acting upon the content of this newsletter, please contact us to discuss how the above applies to your specific circumstances.
This information is general advice only and neither purports, nor is intended to be advice on any particular matter.
No responsibility can be accepted for those who act on the contents of this publication without first contacting us and obtaining specific advice.
Liability limited by a scheme approved under Professional Standards Legislation.
For further information please refer to our privacy policy
Level 15, London House, 216 St Georges Terrace Perth WA 6000
08 6311 6900
