From July 2027, only new builds can be negatively geared.

Nobody can answer that with certainty yet, and be careful of anyone who says otherwise. The Treasury Laws Amendment (Tax Reform No.1) Act 2026 limits negative gearing to new builds and keeps the 50% CGT discount available for new residential dwellings, but it does not define either term. The definition is to be published separately by legislative instrument rather than in the primary legislation, and it has not been released. Explanatory material points at dwellings that genuinely add to housing supply and has flagged knock-down rebuilds as falling outside. A newly built dwelling on a new lot is the clearest case; a demolition and rebuild on an existing lot is the one to be careful with. Take the specific package to a registered tax agent, and treat any confident qualification promise made before the instrument is published as an opinion.

Only if it is a new build, subject to the definition above. From 1 July 2027 negative gearing on residential investment property is limited to new builds. Established homes acquired after 7.30pm AEST on 12 May 2026 lose the ability to deduct net rental losses against salary and other income, with those losses instead quarantined to residential rental income and gains. They are not lost: they can be carried forward and applied against future residential rental income and future residential capital gains. Properties held before that announcement, including contracts already signed at the time, are grandfathered and continue under the existing rules until sold. Confirm your specific position with a registered tax agent.

Better than that: they get a choice. For new residential dwellings the existing 50% discount remains available, and the new indexation regime is available too, with individuals and trustees able to choose between them. For everything else the discount is replaced from 1 July 2027 with cost base indexation plus a 30% minimum tax on net capital gains. Which of the two options is better depends on how long you hold and what inflation does over that period, so it is a decision for your accountant in the year you sell rather than a calculation to do now.

Most lenders look for a 20% deposit on investment property, which on a $1.15m package is around $230,000, plus another $50,000 to $60,000 for stamp duty and acquisition costs. So roughly $285,000 cash in. Some investors fund this from savings; many fund it by releasing equity from an existing property that has grown in value, which means the cash does not have to come out of a bank account. Lenders Mortgage Insurance can allow a lower deposit but adds cost. Your specific borrowing capacity, useable equity and serviceability are conversations to have with a mortgage broker who understands investment lending. We can introduce you to one.

Yes, and this is how a significant share of Perth investors fund their second, third or fourth investment property. If your home or another investment has grown in value, your bank may let you borrow against that equity to fund the deposit and acquisition costs on the new build. The new build still carries its own loan. The right structure depends on your overall portfolio LVR, serviceability, cross collateralisation considerations and tax structuring, so a broker who specialises in investment lending is the right person to design it. This is not financial advice; it is how the option commonly works.

Generally yes. Several costs incurred across the 10 to 12 month build period are typically deductible in the year they are incurred, before the property earns rent. These include loan interest during construction, often $30,000 to $50,000 or more on a $1.15m package across the build, council and water rates on the land, land tax where applicable, and borrowing costs such as loan fees, valuation and LMI spread over five years. The ATO has specific rulings on what is deductible and when, and eligibility depends on a genuine intention to produce assessable rental income. Confirm specifics with a registered tax agent before lodging.

From watching Perth investors over the years, new builds work best for people with a stable income above around $120,000 who can use the deductions, investors with existing equity to release from another property, those with a 10 to 20 year holding view, and investors who can comfortably hold at a moderately negative pre-tax cashflow. They do not suit investors who need positive cashflow from day one, those funding the deposit from short term savings, or anyone whose serviceability would be stretched by a 1 to 2 percentage point rate rise. The right answer for you specifically is a conversation with a licensed financial adviser.

No to both. We are a residential property management agency. We do not sell property and we do not hold an Australian Financial Services Licence. What we do is manage Perth investment properties and, in the course of that, watch a lot of investors succeed and fail. We are happy to share what we observe about the Perth market, the new build product, achievable rents and the operational reality. Personal financial advice, meaning whether you should invest, how much, and in what structure, is the work of a licensed financial adviser. We will refer you to one if you do not have a relationship.

A standard new build single dwelling in an outer Perth growth corridor typically delivers 3 to 4 per cent gross and around 2 to 3 per cent net. A dual key new build on the same cost base, meaning two self contained dwellings on one title, typically delivers around 6.5 per cent gross and 4.8 per cent net, generating roughly $29,000 a year more net operating income from the same land. Net cashflow on an 80% interest only loan is meaningfully negative on the standard single dwelling and close to break even on the dual key, before depreciation. Get a free appraisal for the numbers on a specific package or block.

Two reasons. First, Western Australia has roughly $188 billion in major projects either under way or commencing across the 2026 to 2030 window: defence work at Henderson, the HMAS Stirling submarine program, Westport, METRONET, the Perth Airport runway, hospital builds, and the renewables and LNG pipeline. Each draws sustained labour into the state. Second, REIWA put Perth rental vacancy at 1.9% in August 2026, against 2.2% in July and 2.2% a year earlier. The market has stayed below the 2.5 to 3.5% REIWA considers balanced right through the year rather than easing back towards it. Strong demand and constrained supply support both rents and low vacancy.

On the same Perth block a dual key new build typically generates around $29,000 a year more net operating income than letting it as a single dwelling. The second self contained dwelling produces an independent income stream that more than offsets the marginally higher build cost, and vacancy risk falls because both sides being empty at once is unlikely. Structurally a dual key is one continuous build envelope divided by a fire rated centre wall, each side with its own front entry, garage and driveway. Both sides are leased as standard residential tenancies with no specialist compliance burden, and can be managed at standard residential rates.

Wherever we can secure suitable land. We work with a small number of trusted Perth builders who design and deliver dual key packages on land releases across the metro, particularly through the southern, eastern and northern growth corridors. Packages come and go as land releases progress, so the most reliable way to know what is available right now is to join the dual key list further up this page, or contact us with what you are looking for.

Yes. A new build contracted today retains full depreciation on both the building, as capital works at 2.5% a year over 40 years, and the plant and equipment, meaning fittings, appliances and fit out items. Established properties bought after May 2017 have significant restrictions on second hand plant and equipment claims, and from 2027 lose negative gearing access and the CGT discount on top. Order a tax depreciation schedule from a qualified quantity surveyor in your first year to capture the full benefit. We can refer you to a vetted partner.

Yes. The reforms were announced in the 2026-27 Federal Budget on 12 May 2026. The Treasury Laws Amendment (Tax Reform No.1) Bill 2026 was introduced to the House of Representatives on 28 May 2026 and passed the Senate on 25 June 2026 with the support of the Greens. The measures apply from 1 July 2027. Two things did not come with it. The definition of a new residential dwelling is to be published separately by legislative instrument and has not been released. And a proposed 30% minimum tax on discretionary trust distributions from 1 July 2028 was not included in the Bill; the government has said a separate regime for discretionary trusts will follow, with the details not yet released. Further guidance and explanatory material will continue to be published between now and 2027. Confirm your specific position with a registered tax agent.