CGT, negative gearing and no-grounds evictions.
What my landlords are actually asking me right now.

This week I sat down with my accountant to talk through everything that is being thrown around in the media right now. CGT discount changes. Negative gearing reform. WA's proposed no-grounds eviction ban. My landlords have been asking questions, mostly out of curiosity rather than panic, and I wanted to make sure I actually knew what I was talking about before I answered them. Here is what came out of that conversation, and my honest take on each one.

1. The CGT discount: what is actually being talked about

The short version is that the federal government is expected to reduce the capital gains tax discount from 50 per cent to 33 per cent in the May 12 budget. That discount has been in place since 1999 and it means that when you sell a property you have held for more than 12 months, you only pay tax on half your capital gain. Reducing it to 33 per cent means you would pay tax on two thirds instead.

When I asked my accountant about it, the response was pretty straightforward. "Wait and see," he said. "Nothing has been legislated. The detail matters enormously, particularly whether any change applies only to properties purchased after a commencement date or whether it catches existing holdings too. The expectation among most people watching this closely is that existing properties would be grandfathered, meaning the current rules continue to apply to anything you already own." That was his read, not a guarantee.

That is a meaningful distinction. If you bought your investment property years ago and are planning to hold it for another decade, a change that only applies to new purchases from a future date may not affect you at all. But until we see the actual legislation, nobody knows for certain, which is exactly why my accountant said to hold tight rather than make decisions based on what is still just a proposal.

The Perth context

Perth has had a strong run of capital growth over the past few years. Landlords across the northern suburbs, inner city and coastal areas have seen significant value increases. Some are sitting on substantial unrealised gains across suburbs like Joondalup, Clarkson, Wanneroo, Scarborough and the broader Perth metropolitan area. If a change does come through and you were already thinking about selling, the timing question becomes more relevant. But my accountant's advice was not to do anything reactive before the budget. Make decisions based on what the legislation actually says, not on speculation.

2. Negative gearing: further away than it seems

There is a lot of noise about negative gearing reform but when I raised it, my accountant's view was that it is not the immediate priority. The most commonly discussed proposal is a cap at two investment properties, where losses on properties beyond that could not be offset against salary income. But Labor's official position as of now is that they are not proposing changes to negative gearing. The May budget is expected to focus on CGT first.

For most of my landlords, who own one or two properties, a two-property cap would not directly affect them anyway. The landlords who genuinely need to think about this are those with larger portfolios where the tax treatment of negatively geared properties is central to the strategy.

3. No-grounds evictions: this one is actually fine

WA is expected to announce a ban on no-grounds rental terminations around the May 7 state budget. This would mean landlords need to provide a valid reason to end a tenancy, bringing WA into line with most other states.

Honestly, out of the three things being discussed right now, this is the one I am least worried about for my landlords.

The valid grounds that exist under these frameworks cover everything a responsible landlord would genuinely need. Not paying rent. Significant damage. Selling the property. Moving in. Major renovations. If you have a legitimate reason to end a tenancy, you have a ground. What you cannot do is end a tenancy with no explanation, which in practice often means ending it because a tenant complained about something or asked for repairs. That is not something good landlords need to do.

What it does mean is that documentation becomes more important. When you issue a termination notice, you need to state the reason clearly and have the paperwork to back it up. Getting that wrong means the notice is invalid and you are back to square one. That is an argument for having your records in order, and one of the reasons professional management reduces your risk as the compliance environment tightens.

My takeaway from the week

The mood among my landlords this week has been pretty calm. Curious about what is coming, but not alarmed. I think that is the right instinct. A lot of what is being reported is still speculation, and the people who tend to make costly mistakes in these situations are the ones who react to headlines rather than actual legislation.

My accountant was clear: "Wait and see. Know your numbers. Understand what a CGT change would actually mean for you in dollar terms if it applies to you. Have that conversation before the budget if you can. But do not restructure your portfolio, rush a sale, or make a big decision based on something that has not been confirmed yet." That stuck with me. It is good advice.

The Perth rental market itself remains strong. Perth vacancy rates are historically tight and among the lowest of any capital city in Australia. Rents across the Perth metropolitan area have held up well. Demand from tenants is not softening. And it is worth noting that Perth outpaced every other Australian capital city for price growth in the December 2025 quarter, according to REIWA's latest data. Whether you own an investment property in the northern suburbs, southern suburbs, or anywhere across greater Perth, those fundamentals matter more to the long-term performance of your investment than any of the policy noise this month.

If you have questions about how any of this affects your specific property, I am happy to talk it through. That is what I am here for.

Questions Perth landlords are asking us

Will the CGT changes affect my existing Perth investment property?

Based on current reporting, the most likely scenario is that existing properties are grandfathered under the current 50 per cent discount. A change would most likely apply only to properties purchased after a future commencement date. But this is not confirmed. Speak to your accountant before the May 12 budget to understand your specific position.

Should I sell my Perth investment property before the budget?

My accountant's advice is to wait and see what the legislation actually says before making any decisions. Making a major financial move based on speculation can create more risk than it removes. Know your numbers, understand your cost base, and make decisions from a position of information rather than anxiety.

Will WA's no-grounds eviction ban affect me as a Perth landlord?

If you are managing your property professionally and have good tenants, the practical impact on your day-to-day is minimal. The main change is that termination notices will need to state a valid reason and be supported by documentation. Valid grounds cover every situation a responsible landlord would genuinely encounter.

Is Perth still a good place to invest in property in 2026?

The fundamentals of the Perth rental market remain strong. Perth outpaced every other Australian capital city for price growth in the December 2025 quarter according to REIWA. Vacancy is historically tight, rents are holding up, and demand from tenants across the Perth metropolitan area is not softening. Policy uncertainty is uncomfortable but it does not change the underlying supply and demand picture for Perth property.