Last month’s Federal Budget announcement created plenty of debate around property investment, but beyond the headlines there may also be significant opportunity ahead.

The biggest change is the proposed tightening of negative gearing and Capital Gains Tax concessions for established properties from 1 July 2027. While existing investors are largely protected under grandfathering provisions, the direction is clear: the Government wants future investment flowing into new housing supply.
For years, many investors relied on established homes and long-term capital growth as the core strategy. Now the tax system is increasingly rewarding new builds, infill development and projects that add housing stock to the market.

In practical terms, new builds continue to retain stronger tax advantages, including access to full negative gearing benefits and more favourable CGT treatment compared to established purchases under the proposed framework.
For WA investors, that matters because Perth’s fundamentals remain incredibly strong.

We continue to see population growth, undersupply of housing and major infrastructure and defence investment driving demand across key corridors. The Federal Budget’s continued commitment to defence spending and the Henderson precinct is another important signal for long-term growth in Perth’s south metro.

For farming families and regional business owners, this is where the conversation becomes particularly relevant.
Many farming families are now looking beyond agriculture alone, with greater focus on succession planning, asset protection and creating additional income streams that aren’t tied solely to seasonal conditions.
Well-structured property development can play a valuable role in that strategy.

We are seeing more clients focus on infill landed development opportunities that increase density. As always, the focus is on location and completed infrastructure, these are not speculative plays, they are solid long-term plays that create wealth for current and future generations.

Structures are another focus from the budget. The landscape has changed and many clients are in discussions about what the changes may mean. This is a conversation to have early with accountants and advisors.

Development and urban infill projects are likely to become an even bigger part of the wealth creation conversation for our clients as governments increasingly incentivise new housing supply over passive investment in existing homes.

If you’d like to discuss how these changes could impact your investment strategy, give me a call for a confidential chat.

Andrew Johnson
Managing Director
Johnson Property Group
0418 194 101