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The 2026 Federal Budget continued the Government's focus on housing supply, affordability and increasing new housing delivery across Australia.
For WA property investors, the key takeaway is clear: policy settings are increasingly favouring new housing stock.
Combined with Perth's population growth, tight rental market and comparatively accessible property prices, the latest changes may strengthen demand for well-located new apartments and house and land packages across Western Australia.
If the proposed reforms proceed, investors may increasingly look towards newly built properties that align with changing tax settings while offering strong tenant appeal and long-term growth potential.
What Was Announced in the Federal Budget?
Several housing and taxation measures announced in the Budget could affect investment property decisions over the coming years.
Proposed Changes to Negative Gearing
Under the proposed reforms, negative gearing benefits for residential property investments would be limited to newly built homes from 1 July 2027. Existing investment properties purchased before the changes would remain under current arrangements.
If implemented, this would increase the relative appeal of new build investment properties including apartments, townhouses and house and land packages.
The proposed reforms are not currently law and remain subject to parliamentary approval.
Proposed Changes to Capital Gains Tax (CGT)
The Budget also proposed changes to capital gains tax arrangements, including replacing the current 50% CGT discount model with a system based on real gains above inflation.
Importantly, investors who purchase newly built properties would retain access to the existing 50% capital gains tax discount option. Under the proposed framework, investors would be able to choose between the current 50% discount method and the new indexation method, allowing them to apply whichever approach delivers the more favourable tax outcome when they sell.
While the reforms remain subject to legislation, the proposed changes further reinforce the Government's focus on encouraging investment into new housing supply.
For investors, this could create an additional financial incentive to consider newly built homes and apartments compared to established properties purchased after the reforms take effect.
Why Perth Continues to Attract Property Investors
Perth remains one of Australia's more accessible capital city property markets.
Compared with Sydney and Brisbane, investors can still access relatively lower entry prices while benefiting from strong rental demand and population growth.
Western Australia's economy also continues to be supported by:
- interstate migration
- employment growth
- infrastructure investment
- expanding lifestyle and employment precincts
- financial returns and benefits
- lower maintenance requirements
- energy-efficient design
- modern layouts and inclusions
- appeal to tenants seeking newer homes
- access to depreciation benefits
- turnkey convenience
At the same time, Perth's rental market remains tight, with ongoing demand for quality homes in well-connected locations.
These conditions continue to support interest in investment property across both apartments and house and land communities.
Why New Build Properties Are Gaining Attention
New build properties are becoming an increasingly important part of the investment conversation.
For many investors, modern apartments and house and land packages offer practical advantages over older established properties.
These can include:
- financial returns and benefits
- lower maintenance requirements
- energy-efficient design
- modern layouts and inclusions
- appeal to tenants seeking newer homes
- access to depreciation benefits
- turnkey convenience
Location also remains critical.
Developments located close to transport, retail, schools and lifestyle infrastructure are often better positioned to attract long-term tenant demand.
This is particularly relevant in Perth growth corridors where new infrastructure and population growth continue to drive housing demand.
Cedar Woods Communities Positioned for Long-Term Demand
If the proposed Federal Budget reforms come into effect, investors may increasingly prioritise newly built properties that align with future tax settings while meeting the expectations of today's renters.
Across Western Australia, Cedar Woods offers a range of opportunities that may appeal to investors seeking new build property in established and emerging locations.
Eglinton Village
Located in Perth's northern coastal corridor, Eglinton Village offers house and land opportunities within a growing community supported by new transport infrastructure, schools, parks and everyday amenities.
With the METRONET rail extension now servicing the area and continued population growth throughout the northern corridor, Eglinton Village is well positioned for buyers seeking exposure to one of Perth's expanding residential regions.
For investors, Eglinton Village offers the opportunity to secure a newly built home in a growth area where infrastructure investment and population growth are helping to drive housing demand.
Millars Landing, Baldivis
Millars Landing provides house and land opportunities in one of Perth's established southern growth corridors.
The community benefits from proximity to schools, shopping centres, transport connections and employment hubs throughout the Rockingham and Kwinana regions.
For investors, the combination of established amenity, family appeal and access to a newly built property may provide a compelling opportunity should the proposed Federal Budget reforms proceed.
Incontro Apartments, Subiaco
For investors seeking an apartment opportunity closer to the CBD, Incontro Apartments in Subiaco offers a different proposition.
Located within one of Perth's most established inner-city suburbs, Incontro provides access to public transport, retail, dining, employment precincts and lifestyle amenity.
As demand for well-located apartment living continues to grow, new apartments in established urban locations may become increasingly attractive to both tenants and owner-occupiers seeking a low-maintenance lifestyle.
For investors looking to take advantage of the proposed preference for new housing supply while securing a property in a blue-chip location, Incontro represents a unique opportunity within the Perth market.
Final Thoughts
The 2026 Federal Budget reinforced the Government's focus on increasing housing supply and supporting new residential development across Australia.
If the proposed negative gearing and capital gains tax reforms proceed, new build properties may become an increasingly important consideration for investors seeking to maximise both financial outcomes and long-term demand.
For WA property investors, communities such as Eglinton Village, Millars Landing and Incontro Apartments provide opportunities to invest in newly built homes and apartments in locations supported by infrastructure, connectivity and future growth.
As always, investors should seek independent financial and taxation advice before making property investment decisions.
