What the Federal Election Means for Perth Property Investors

With the Federal Election just around the corner on 3 May, there’s been a lot of conversation about what it could mean for the Australian property market, particularly for investors. Both major political parties, Labor and Liberal, have confirmed they’ll keep the current negative gearing and capital gains tax (CGT) settings in place. This brings a sense of relief to those who have been uncertain about the future of investment properties.

Key Takeaways for Perth Property Investors:

No Changes to Tax Settings: Both Labor and the Liberal Party have ruled out changes to negative gearing and CGT, ensuring stability for investors in the coming years. This clarity helps those with existing investment properties and reassures those considering entering the market.

Certainty in an Uncertain Market: With many investors feeling uneasy about potential tax changes, these commitments from both parties offer much-needed stability. It’s clear that the current tax settings will remain, at least for the foreseeable future.

Potential Risks and Opportunities: While we can feel confident in the stability for now, it's important to note that if a minority government is formed, there could still be a chance these policies might come under review again. However, for now, the message is clear—investors can make decisions without the fear of sudden tax changes disrupting their long-term strategies.

This pre-election certainty is particularly important in WA, as the state continues to deal with a rental crisis. With investors already highly sensitive to legislative changes, the reassurance that the tax settings will remain the same could help keep them in the market or encourage new investments.

If you're a Perth property investor, this is a time to feel confident in the market’s direction. And, if you're considering making a move, whether buying or selling, these policy commitments could give you the stability you need to move forward.

Paulette Contessi 

Director / Licensee

CONTESSI PROPERTIES