Big housing tax changes are coming, and they could impact buyers, homeowners, and investors across Perth.

In this month’s update, we break down:

• What changed
• Key dates to know
• What it means for investors
• How Perth buyers may benefit

At Loan WA, we’re here to help you make confident property and finance decisions with simple, expert guidance every step of the way.

QUICK SUMMARY

At a glance
1.Existing investors keep their current tax benefits
2.New builds still qualify for full negative gearing
3.New rules begin from July 2027
4.Perth buyers may face less investor competitors
5.Treasury estimates buyers could save around $19,000 on a median-priced home

What’s Changing?

Negative Gearing Changes

From 1 July 2027, negative gearing benefits will mainly apply to newly built investment properties.
Existing investment properties purchased before the changes will keep their current tax treatment.

Capital Gains Tax (CGT) Changes

The current 50% CGT discount for investment properties will be replaced with a new inflation-adjusted method and a minimum 30% tax on gains.

What Is Negative Gearing?

Negative gearing happens when the costs of owning an investment property are higher than the rental income it earns.
Currently, investors can use those losses to reduce taxable income.
Under the new rules, from July 2027, these benefits will mainly apply to newly built properties.

What About Capital Gains Tax?

Capital Gains Tax (CGT) applies when you sell an investment property for a profit.
Currently, investors who hold a property for more than 12 months receive a 50% CGT discount.
From July 2027, new tax calculations will apply to future investments.

What Investors Need to Know…

Existing Investment Properties
If you already own an investment property, your current tax benefits remain unchanged.

Buying an Existing Property
From July 2027, losses from established properties may no longer offset salary income, changing cash-flow strategies for some investors.

Buying a New Build
Newly built investment properties will continue to qualify for full negative gearing benefits.

Good News for Perth Buyers?
These changes may reduce investor competition in the established housing market, helping first-home buyers and owner-occupiers.

Treasury modelling suggests Perth buyers could save up to $19,000
on a median-priced home as investor demand eases.

5 Smart Moves for Now

Already own an investment property? Your current tax treatment remains protected.
Thinking about investing? New builds may become more attractive under the new rules.
First-home buyer? Less investor competition could improve your negotiating power.
Planning to sell? Timing may become more important before the July 2027 changes.
Speak with your broker and accountant as a quick strategy review now could save you thousands later.

Extra Help coming for Housing Supply

The government has also announced major housing investment initiatives, including infrastructure funding and faster visa processing for skilled construction workers.
For Perth, this could help improve housing supply and ease building delays over time.
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Need Help Understanding the Changes?

Every buyer and investor situation is different.
Speak with the Loan WA team for personalised guidance on your home loan, refinancing or investment strategy.