2019 Federal Budget – Impacts on Property Investors

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With an imminent Federal Election, some of the new measures announced in the Federal Budget 3 weeks ago may never eventuate - depending on who wins Government.

Yet, we still wanted to briefly cover the 2019 Federal Budget impacts (or otherwise) on property investors.

The key change – or lack of change announced – is that the Coalition Government has left both negative gearing and capital gains tax deductions unchanged – excellent news for many property investors.  

And while personal tax cuts for middle income workers are always welcome by workers, the Government also announced ongoing, significant increases in infrastructure spending ($100 billion over the next 10 years).

This massive investment in infrastructure should help with congestion in capital cities – not to mention employment in many industries. Here in Queensland, there is also more funding for rail link projects for Brisbane and the Sunshine Coast and Gold Coast. Additional investment in regional areas will also continue to stimulate the building and property markets in these regions.

While some investors may be concerned about the impacts of Labor’s policy to limit negative gearing to newly constructed housing only, all investments made before their changes come into effect, will be fully grandfathered. This means investors who purchased existing properties before the commencement date will still be able to claim losses against wage income.

We will continue to keep you informed on any changes to negative gearing – and look out for some of our upcoming insights videos on this topic.

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