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 a reduction in the capital gains tax discount is being discussed ahead of the May 12 federal budget. The current discount has been at 50 per cent since 1999 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. One scenario being reported is a reduction to 33 per cent, which would mean paying 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. One scenario people are discussing is that existing properties would be grandfathered, meaning the current rules continue to apply to anything you already own. But until we see actual legislation, that is not confirmed." That was his read, not a guarantee.

That distinction matters a lot. If you bought your investment property years ago and are planning to hold it, a change that only applies to new purchases from a future date may not affect you at all. But nobody knows the detail yet, 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, if anything.

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: a manageable change, but an important one

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.

For the vast majority of my landlords with well-managed properties and good tenants, the practical impact day to day will be minimal. The valid grounds that exist under these frameworks cover the situations a responsible landlord would genuinely encounter: tenant not paying rent, significant damage, selling the property, moving in yourself, major renovations. If you have a legitimate reason to end a tenancy, you have a ground.

That said, it is a real shift in how terminations work and it is worth understanding. What it removes is the ability to end a tenancy without stating a reason. In practice, that mechanism has sometimes been used in situations where a tenant has complained about something or asked for repairs. That practice ends.

What this means practically is that documentation becomes more important. When you issue a termination notice, you need to state the reason clearly and have the paperwork to support it. Getting that wrong means the notice is invalid and the process starts again. Good records are not optional from here.

It feels like everything is happening at once

Honestly, that is the best way I can describe this moment. Global conflict, interest rate rises, changes in legislation. And it is all landing at the same time. Locally, I have been watching it build for a few months now. We are doing a few home opens before we find the right tenant where not long ago one was usually enough. REIWA just reported a 14 per cent spike in listings over four weeks. And we are now seeing real-time buyer hesitancy in the sales market too.

So when I talk about CGT and no-grounds evictions, that is the backdrop. It is not any one thing. It is all of it at once, and I think it is worth being honest about that rather than pretending conditions are the same as they were six months ago.

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. Have a conversation with your accountant before the budget so you know your specific numbers. Understand what a CGT change would actually mean for you in dollar terms, for your property, your cost base, your marginal rate. 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.

Questions Perth landlords are asking us

Will the CGT changes affect my existing Perth investment property?

One scenario being discussed is that existing properties would be grandfathered under the current 50 per cent discount, with changes applying only to properties purchased after a future commencement date. This is not confirmed no legislation has been introduced. Speak to your accountant before the May 12 budget to understand how different scenarios would affect your specific position. ATO: Capital Gains Tax

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.

It is also worth noting that one of the scenarios being discussed is that existing properties would be grandfathered under the current rules meaning the change would only apply to properties purchased after a future commencement date. If that is how it lands, the question of selling before the budget looks very different. Your accountant can help you think through what each scenario actually means for your specific property before May 12.

I did go down a bit of a rabbit hole on this one though. Because once you start pulling at it, you end up wondering if investing in property becomes less attractive, does that mean less rental supply? And if there is less supply in a market like Perth that is already tight, what happens to rents? What happens to people trying to find a place to live? I genuinely do not know. But I found myself thinking about it more than I expected to.

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

If you are managing your property well with good tenants and proper documentation, the practical impact is manageable. The main change is that termination notices will need to state a valid reason and be supported by paperwork. Valid grounds cover the situations a responsible landlord genuinely encounters. It is a real change worth understanding, not a reason to panic. WA Consumer Protection: Rent reforms

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.