Proposed Budget Changes
As we approach the May 12 Federal Budget, Treasury is currently reviewing a range of potential tax changes that could impact property investors and the broader housing market.
While nothing has been confirmed at this stage, proposals under consideration include a reduction in the capital gains tax (CGT) discount (potentially from 50% to around 30%), changes to negative gearing, and the introduction of a minimum tax rate on trust distributions in the range of 25–30%.
The government has indicated a strong focus on improving housing accessibility, particularly for younger buyers. As part of this, changes to negative gearing are being explored, with options such as limiting deductions to newly built properties to encourage supply, capping the amount of rental losses that can be claimed, or restricting negative gearing to a set number of investment properties per owner.
At this stage, these remain proposals only and form part of ongoing discussions ahead of the Budget. We will continue to monitor developments closely and keep you informed of any confirmed changes and what they may mean for your property strategy.
Given the continued movement in the Brisbane market, some owners are taking the opportunity to review their property’s current value or consider their longer-term plans. If you’re curious about what your property may be worth in today’s market and would like an updated appraisal, please contact Chris Lawsen on 0422 868 724 or chris.lawsen@harcourts.com.au.
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