Property investors may pay less capital gains tax under Labor’s reforms, analysis suggests
News Source
•Wed, 23 Sep 2026 15:00:53 GMT
📰 What Happened
Research from the e61 Institute suggests most property investors may pay less capital gains tax under Labor's budget reforms. It looked at nearly 921,000 homes sold between 2008 and 2025.
The analysis found 43% of investors would have paid less tax under the new system over that period. About 53% would have paid more.
Co-author Dr Nick Garvin said the effect on investors is 'not nearly as bad as what's being made out.' He said half of landlords would have faced higher costs from losing negative gearing.
🔍 The Backstory
New investor loan applications fell 28% in two months at the Commonwealth Bank after the May budget. Reserve Bank governor Michele Bullock said the reforms had 'very directly' impacted the market.
The paper found the median home earned an average yearly capital gain of 3.3% after sale costs. With inflation near 3%, only about a tenth of that gain would be taxed under the new rules, against half under the old flat discount.
A Treasury spokesperson said the old rules had overcompensated some investors while underpaying others. Treasurer Jim Chalmers did not directly comment on the paper.
🎯 Why It Matters
Housing costs and tax are hot political issues. The research challenges claims that the reforms will badly hurt investors and could change how voters see the policy.
Research from the e61 Institute suggests most property investors may pay less capital gains tax under Labor's budget reforms. It looked at nearly 921,000 homes sold between 2008 and 2025.
The analysis found 43% of investors would have paid less tax under the new system over that period. About 53% would have paid more.
Co-author Dr Nick Garvin said the effect on investors is 'not nearly as bad as what's being made out.' He said half of landlords would have faced higher costs from losing negative gearing.
New investor loan applications fell 28% in two months at the Commonwealth Bank after the May budget. Reserve Bank governor Michele Bullock said the reforms had 'very directly' impacted the market.
The paper found the median home earned an average yearly capital gain of 3.3% after sale costs. With inflation near 3%, only about a tenth of that gain would be taxed under the new rules, against half under the old flat discount.
A Treasury spokesperson said the old rules had overcompensated some investors while underpaying others. Treasurer Jim Chalmers did not directly comment on the paper.
Housing costs and tax are hot political issues. The research challenges claims that the reforms will badly hurt investors and could change how voters see the policy.