Property update – May 2026 Jack Nevile
Interest rates marching higher again, a Straight that apparently opens every Monday morning (US market time) and closes 4pm Friday (US market time), and jitters about negative gearing and CGT changes. You can get better tea-reading from others on those topics, so I won’t cover them here.
From 1 July 2026, investors will pay double the existing ESVF fixed charge on their investment properties, in line with commercial properties. This will come to approx. $300 per property, depending on the Minister’s determination. Principle places of residence will only pay about $150 of the fixed charge. All properties, PPRs and investments alike, will pay the floating rate based on their market value. See the State Revenue Office’s website here to calculate yours. Or just wait until later this year when you receive your rates notice.
More people have approached me with mind-boggling tax assessments due to the Vacant Residential Land Tax – I recently saw a bill for $65,000. Please, if you have a vacant house, put a friend or family in there, or rent it out on the market. Don’t leave it too late. You need it occupied 6 months of the year, so if your property has been empty all year, rectify that ASAP before 30 June.
Renters have been given a win recently, with notice periods for rent increases and vacating extended to 90 days, and no-fault evictions abolished. Rental applications must now used the prescribed form, and rental application apps can no longer charge for their ‘services’. Further changes are in the pipeline, including making it more difficult to claim a bond, and increasing the minimum standards some more.
While good for renters, I predict the changes from the last few years will mean it’s rare to see rundown houses in desirable locations up for rent – houses in desirable suburbs will likely be sold as they age and become too expensive to bring up to standard. I expect the rental market will gradually shift to apartments, which tend to be modern and already compliant with the standards. The effects on the Australian house party scene remain to be seen.
That said, we are not providing financial or tax advice. However, if you need legal advice, we’re the right people for you.
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