Over decades there have been countless changes to taxation and incentive “settings” by various governments. These changes have primarily occurred at the edges of the system, either as incentives designed to increase market activity and stimulate construction; or as taxes to capture more revenue from the property sector, which provides the largest component of State Government income. In recent years, the Victorian market has demonstrated the effect that higher taxation settings can have.
The 2026 Federal Budget introduces some of the most significant changes to property taxes in decades. These changes appear designed to reduce investor competition in established markets, while pushing foreign purchasers and investors toward new housing and increasing supply. With negative gearing, higher depreciation benefits, and the ability to secure the 50% CGT (capital gains tax) discount still applying to newly constructed house and land packages, townhouses, and apartments, it is reasonable to expect these changes may provide stimulus for renewed investment in the end housing product delivered through projects in which RMBL is involved.
While negative gearing and CGT are the headline items, several other policies are also designed to support this outcome. These include:
Tax benefits no longer applying once a newly built property is on-sold;
Explicit exemptions for build-to-rent developments;
The continuation of the Housing Australia Future Fund to deliver social and affordable homes;
New financial support for apprentices in eligible construction trades;
The removal of place caps and income thresholds for the First Home Guarantee;
Expansion of the Commonwealth help to buy scheme;
A continued temporary ban on foreign purchasers buying established dwellings; and
Permanent migration capped at 185,000 places, with a focus on skilled workers in healthcare, education, and infrastructure engineering.
Commentators and politicians often give investors the raw end of the stick when it comes to housing, but they miss a critical point. Investors provide long-term housing supply to those who either can’t, don’t want to, or will never be able to afford a home. Most projects of meaningful scale rely on a combination of investor pre-sales and owner-occupiers to proceed in a viable and timely manner, generating the supply needed to support ongoing population growth and changing demographics. These critical components of delivering successful residential estates are part of everyday conversations between RMBL and our developer Borrowers.
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This article is for informational purposes only and does not constitute an offer, or recommendation to invest in the Fund. You should read the PDS and TMD available at rmbl.com.au and consider whether an investment in the Fund is right for you before investing.
