10/06/2026
You asked. I answered. The top 5 questions from the last three weeks - answered.
1. Am I grandfathered? If you owned or were under contract before 7:30pm 12 May - yes.
2. Are new builds still worth it? This answer is entirely client dependent. For some investors, new builds may be the best option under the new rules. Full negative gearing and CGT discount are retained, plus depreciation benefits. However, finding and securing a new asset worth owning is key - many new builds exist in fringe areas where future supply risk is great. Don't be blinded by tax outcomes - focus always on the investment fundamentals first.
3. Should I sell before July 2027? Probably not. Transitional rules protect existing gains up until this date when the indexation method will be applied and used moving forward only from this date. If you have held an asset for 5 years and continue to hold for a year or two beyond this date, the impact on your CGT will be minimal when pro-rated.
4. What about my SMSF? SMSFs are exempt from the negative gearing or CGT changes and are a great vehicle to invest in from a tax perspective, despite a higher interest rate being applicable. Talk to your financial adviser and then CPA about this if you are considering this move.
5. What's the best market right now? Depends on your brief and budget; however, Melbourne and Geelong are hard targets for us at the moment and we feel they represent the best value proposition as a counter-cyclical play in the country. Especially with rental growth now placing Melbourne as the highest yielding major capital in the country.
Drop your question in the comments and I'll answer it.
General information only. Not financial advice.