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Renting your next home should be a smooth and streamlined process.
At Raine & Horne we support you at every stage to find the rental property that suits your needs and your budget – no time wasting, no hassle, just all the help you need to settle into your rental home sooner.
As a fourth-generation 100% Australian-owned family business, Raine & Horne has a reputation for expertise and a commitment to excellence. With over 300 offices around the globe and over 72,000 properties under management, we take the time to understand your rental property needs and aspirations. No matter whether you’re renting for the first time, you’re new to an area, or you’re looking for a professional property manager with local knowledge, Raine & Horne’s rental service can help you enjoy a better rental experience.
Raine & Horne experts understand the real estate market, and we can answer all your questions about the rental process, market rents in your area, and what you can expect as a tenant.
Our professional rental service
Raine & Horne helps you find the perfect rental property solution for your needs backed by:
To enjoy a bigger choice of rental properties, and a better tenant experience, talk to Raine & Horne today – we can help you into your rental home sooner.
Maria Milillo, Head of Property Management, Raine & Horne
Along with the widely reported changes to negative gearing, the Federal Budget has introduced new capital gains tax (CGT) reforms for investment properties. While they are yet to pass through parliament, it’s worth knowing how you are likely to be affected.
The impact of the reforms will depend on when you purchased your rental property.
Property owned prior to 12 May 2026 (Budget night)
The 2.2 million Australians who owned a rental property prior to Budget night1 (12 May) can continue to claim a 50% discount on capital gains earned up to 1 July 2027.
Gains made after 1 July 2027 will need to be indexed from 1 July 2027 in line with inflation and have tax paid at the minimum 30% tax rate2. Yes, this could be complicated if you sell a property. That’s because the property’s value at 1 July 2027 acts as the cost base3, potentially calling for the support of a professional valuer.
Property purchased between 12 May 2026 and 1 July 2027
If you exchange on a property after 7:30pm on 12 May 2026 and before 1 July 2027, and the property is sold prior to 1 July 2027, the 50% CGT tax discount may apply if you have owned the asset for at least 12 months4. If that’s not the case, the total capital gain is added to your taxable income and taxed at your marginal tax rate5. Note, for tax purposes, the date you acquire the property is the date on the contract, not when you settle6.
For properties sold after 1 July 2027, capital gains earned up to 1 July 2027 can be reduced by 50%, though gains made after 1 July 2027 will need to be indexed for inflation and taxed at a minimum of 30%7.
Property purchased after 1 July 2027
For properties purchased after 1 July 2027, the 50% CGT discount will no longer be available. Instead, the cost base will be indexed for inflation, and a 30% minimum tax will apply.
It's a highly complex issue, and many accounting professionals appear reluctant to provide simple examples illustrating the potential impact of the proposed indexation method.
However, tax depreciation specialist duotax offers an online calculator (https://duotax.com.au/cgt-calculator/) that provides investors with an indication of how the changes could affect their capital gains tax liability if the proposed legislation passes Parliament.
Using duotax’s calculator, we’ve assumed the property was purchased for $1 million on 2 July 2027 and was sold for $1.5 million on 2 July 2030. Based on an average annual inflation rate of 2.78%, calculated by Duo Tax using the average CPI over the past 20 years, the results were significant.
Under the current 50% capital gains tax discount, a $500,000 capital gain would result in a taxable gain of $250,000.
However, under the proposed indexation method, the property's cost base would be adjusted for inflation over the three-year holding period. Using duotax's assumptions, this would result in a taxable capital gain of approximately $414,260 – or an extra taxable gain of $164,260.
While the outcome will first depend on whether the proposed changes pass Parliament, the impact on individual investors will then vary according to factors such as the property's purchase price, sale price, holding period (and market conditions during this holding period) and the rate of inflation during ownership. Nevertheless, this example highlights why the proposed changes have attracted significant attention from property investors and their advisers.
Exceptions to these changes
There are two key exceptions to the proposed CGT reforms8:
To know how the CGT reforms could impact you, speak with your tax professional.
Maria Milillo, Head of Property Management, Raine & Horne
This is a timely question, particularly given the ongoing debate about the Federal Government's proposed changes to negative gearing and its decision to drag capital gains tax back to the era of indexation in last month's Budget.
Quite rightly, there’s been no shortage of talk about the impact that the proposed changes will have on rental prices, supply, and, of course, vacancy rates. However, the proposed changes still need to pass through Parliament before their full impact on the rental market can be assessed.
In the meantime, winter 2026 could offer some practical advantages for renters.
Rental demand typically peaks during summer, when people relocate for new jobs, families settle before the school year begins, and students secure accommodation for university. This activity creates a more competitive environment, with higher enquiry levels and busier inspections.
By contrast, renter activity often slows during winter - moving properties is disruptive at the best of times, and the shorter days, rain and colder temperatures make it less appealing than the warmer months. But for those who have their hearts set on finding different rental digs, with fewer people actively searching, there's less competition at inspections, improving your chances of securing a property from June to September. On the flip side, there may be fewer properties available than in the peak summer months.
Whether it's January or June, preparation remains critical to find a suitable rental property. Have your paperwork ready, including recent pay slips, photo identification, rental history and references from previous landlords or property managers. Being organised allows you to act quickly when the right property becomes available.
Winter can also provide tenants with more scope to negotiate. In a quieter market, some landlords may want to discuss the prospect of you taking a longer lease, or perhaps they might throw in some inclusions such as furnishings, lawn mowing or garden maintenance.
Another advantage of inspecting properties during winter is that you'll get a better sense of how they perform in colder conditions. Look for signs of dampness, poor ventilation and mould, particularly in more established properties.
Although policy changes and economic conditions could shape the rental market in the long term, winter 2026 may offer renters an excellent opportunity to get ahead of the curve and secure a property before spring and greater competition.
For more tips on finding the right rental property this winter, contact your local Raine & Horne Property Manager.
This is a timely question, especially with vacancy rates extremely tight and concerns growing that proposed Federal Government changes to property taxation could further restrict the rental supply.
The Finance Brokers Association of Australia (FBAA) has warned that policy changes to property taxation, combined with broader economic pressures, could push thousands of households, including renters, to breaking point.
There are already signs the housing crisis is forcing more adults to rent together, including single parents teaming up with other single parents to secure accommodation, a trend increasingly being discussed in Facebook community groups.
As a result, more Australians appear to be considering entering “shared tenancy” arrangements similar to the share house model favoured by younger renters and university students. However, before signing on the dotted line, it’s important to understand the rules and risks involved.
The first step is understanding the difference between a “co-tenancy” and a shared tenancy.
In a co-tenancy arrangement, all adult occupants are named on the lease agreement. This setup generally works best when the tenants know each other well and are comfortable applying for and renting property together.
By contrast, a shared tenancy, often referred to as “subletting”, is more common when tenants do not know each other or are only loosely connected, such as through a Facebook community group. In this arrangement, one person acts as the “head tenant”, dealing directly with the landlord or property manager before subletting rooms to other occupants.
Naturally, shared tenancy arrangements come with greater risks, particularly for sub-tenants. However, for renters struggling with the cost-of-living crisis, they can provide a more affordable pathway into rental housing. Of course, living with strangers is not always easy - although even close friends can discover that sharing a rental property can test relationships.
Thankfully, all state governments have legislation designed to protect renters in shared accommodation arrangements. In Queensland, for example, these protections are specifically recognised through the inclusion of “Rooming Accommodation” in the Residential Tenancies and Rooming Accommodation Act 2008, which covers shared tenancies and common areas in boarding house-style accommodation.
That said, the head tenant in a shared tenancy arrangement generally has more control than tenants in a co-tenancy setup and will usually have the final say when selecting new sub-tenants.
In a co-tenancy arrangement, because all tenants are named on the lease, everyone shares legal responsibility for the property. If one tenant decides to leave before the lease expires, it is usually up to that person to help find a replacement tenant. Before moving in, the new tenant must typically be approved by the property manager or landlord, usually by completing a formal application process. This is important not only from a financial perspective, but also because landlords and agents need to know exactly who is living in the property for safety and occupancy reasons.
Importantly, if rent is unpaid or damage occurs to the property, all co-tenants can be held responsible for the costs.
In some shared tenancy arrangements, however, only the head tenant is legally responsible to the landlord for rental arrears or property damage, while the sub-tenants have a legal relationship only with the head tenant.
For sub-tenants, this can create additional risks. For example, if the head tenant leaves the property, is evicted, or breaches the lease agreement, the sub-tenant’s right to remain in the property may end immediately.
Likewise, if the bond is not properly lodged with the state rental bond authority for the head tenant, sub-tenants may struggle to recover their money. Because they have no direct legal relationship with the property owner, sub-tenants must also rely on the head tenant to organise repairs, maintenance and communication with the landlord.
For more tips on landing the right rental property as we head into the colder months of the year, contact your local Raine & Horne Property Manager.
After many years of insisting it wouldn’t happen, the Albanese Government’s decision to dismantle negative gearing and wind back capital gains tax concessions will do little to create so-called “generational equity” or address the underlying issue of housing supply.
With negative gearing only put on the tax reform agenda just weeks before the Budget[i], the Treasurer’s announcement offered little insight into how slashing negative gearing will materially help aspiring first homeowners or improve affordability.
Negative gearing for existing arrangements will remain unchanged. This is called grandfathering. It will apply to all properties held before Budget night on 12 May. Investors who buy new builds will still be able to deduct losses from other income.
The support for new builds seems misguided, as the Government has consistently missed housing targets under the National Housing Accord due to lack of tradies and rising material costs. More demand for new builds will only worsen capacity constraints and costs.
From 1 July 2027, losses related to existing residential investment properties purchased from 7:30 pm AEST 12 May 2026 will only be deductible against other income from residential properties, including capital gains[ii].
The budget also confirmed that the Government will replace the 50% CGT discount with an inflation-based discount and introduce a minimum 30% tax on gains from 1 July 2027.
Again, in combination, the Treasurer says these changes will only create a mere 7,500 new homeowners per annum over the next decade across Australia[iii].
Tax sting for retirees
A particularly galling aspect of the introduction of the minimum 30% tax is that it will reduce the benefit of taxpayers deferring capital gains realisations to years when their marginal tax rates are lower[iv]. This has long been a legitimate tax planning strategy for older landlords transitioning into retirement.
Moreover, this change increasingly resembles a “tax sting” for Australians who planned responsibly for retirement because it effectively subjects their real estate gains to a tax rate much closer to what they faced during their working lives[v].
Budget changes could leave landlords selling into a thinner market
It is a flawed theory that if there are fewer investors in the future, aspiring first-home buyers will immediately step in to fill the void. Besides, when the time comes to sell an investment property under the new rules introduced on Budget night, landlords will be selling into a smaller buyer pool – because by dismantling the existing investment property tax regime, there will inevitably be fewer investors in the market.
And of course, a smaller investor pool could ultimately weigh on future property values.
This is close to a perfect storm for the residential real estate market. The changes will further encourage first-home buyers, who are already supported by incentives such as 5% deposit schemes, while simultaneously disadvantaging property investors.
Finally, who says history doesn’t repeat? The last time Labor abolished negative gearing in 1985 - under arguably one of the party’s greatest PMs Bob Hawke – rents surged in several capital cities and the policy was reversed just two years later. There is little evidence to suggest history will be any kinder to Labor and that the rental outcome will be any different this time.
In the wake of the latest Federal Budget, landlords and property investors have plenty to consider. For guidance on how the changes to capital gains tax and negative gearing may impact your circumstances, speak with your accountant first, then your local Raine & Horne Property Manager.
[i] https://www.realestate.com.au/news/housing-crisis-to-worsen-experts-warn-over-cgt-negative-gearing/
[ii] https://budget.gov.au/content/factsheets/download/tax-explainers-negative-gearing-capital-gains-tax.pdf
[iii] https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/speeches/2026-27-budget-speech-parliament-house-canberra
[iv] https://budget.gov.au/content/factsheets/download/tax-explainers-negative-gearing-capital-gains-tax.pdf
[v] https://budget.gov.au/content/factsheets/download/tax-explainers-negative-gearing-capital-gains-tax.pdf
This is a great question, especially given the uncertainty created by recent statements from the Albanese Federal Government.
Property investors are already on red alert amid speculation that Treasurer Jim Chalmers will reduce the capital gains tax (CGT) discount as part of his May budget. Adding to this, in a recent speech at the National Press Club in early April, the Prime Minister flagged the need to address “intergenerational inequity”. This phrase usually means a politician wants to improve housing affordability for younger Australians –and is also language widely interpreted by the property sector as signalling potential changes to negative gearing.
The key point is that, as history has demonstrated many times, tightening property-based tax concessions only serves to deter Australians from investing in residential property, which would likely result in a reduction in the supply of rental properties. This would be financially disastrous for the more than one in four Australians who rent their home from a landlord.
It’s also important to remember that most investors aren’t large-scale operators. The majority own just one property and are everyday Australians such as nurses, teachers and tradies, building long-term financial security[i]. So, with this in mind, it’s worth taking a quick look at the benefits of both negatively gearing a property and the capital gains tax discount as they currently stand.
CGT discount
When you sell an asset, such as property, shares, cryptocurrency or a business, you may be able to reduce your capital gain by 50% under the capital gains tax (CGT) discount, provided you’ve owned it for at least 12 months and are an Australian resident for tax purposes[ii].
To calculate the capital gain, subtract the original purchase price of the investment property and any associated holding costs, such as renovations and improvements, from the final selling price. The amount remaining represents your capital gain. For example, if you purchased an investment property for $600,000, spent $50,000 on improvements, and later sold it for $900,000, your capital gain would be $250,000.
Using the CGT Discount as it stands, the taxable capital gain is reduced by half, from $250,000 to $125,000. So, instead of paying tax on the full gain, you only pay tax on $125,000, which is then added to your taxable income for the year and taxed at your marginal rate. Keep in mind you will still pay tax on the capital gain, and over the period you owned the rental property, you have put a roof over the head of other Australians.
Negative gearing
Negative gearing, in simple terms, occurs when you borrow money to invest in an asset—such as a property—but the income it generates is not enough to cover the ongoing costs of owning it.
These costs can include interest on the loan, maintenance and repairs, council and water rates, insurance, strata fees, and depreciation, which reflects the property's wear and tear. Investors can claim depreciation on both the building (capital works) and assets such as appliances, carpets and fittings over time. Legal and accounting fees related to managing the investment, including tax return preparation, are also typically deductible.
When these expenses exceed the rental income, the resulting loss can generally be offset against your other income, such as wages, reducing your overall tax bill at the end of the financial year.
We know that most landlords own just one rental property, while one in ten self-managed super funds also invest in residential property[iii]. Therefore, any changes to the way property is taxed are likely to impact the retirement aspirations of tens of thousands of Australians.
If you’re considering selling or buying a residential investment property, contact your local Raine & Horne office today.
[i] https://www.ato.gov.au/about-ato/research-and-statistics/in-detail/taxation-statistics/taxation-statistics-2022-23/statistics/individuals-statistics#Table8Individuals
[ii] https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/cgt-discount
[iii] https://data.gov.au/data/dataset/2fd970ec-984e-4593-bbad-2e69a5fa7a89/resource/7a50c5c8-5c0e-4a4b-a11e-feaad39f2bd0/download/smsf-annual-overview-2023-24.xlsx
Yes, April and May can be one of the best times of the year to secure a rental property.
Rental demand typically peaks over summer, particularly from January through to March, when workers relocate for new jobs, schools are starting or more students are looking for university digs – in other words people are looking to settle in for the year ahead. This level of movement creates a more competitive environment for tenants, with higher enquiry levels and fewer opportunities to negotiate a weekly rent with property managers.
In contrast, there may often be less renter movement in the run-up to winter. With fewer tenants actively searching, there’s generally less competition at weekend inspections, giving tenants a better chance of securing a property. Just be aware that, unlike summer, there are often fewer properties on the market in April, May and June.
That said, regardless of the time of year, preparation is critical for tenants. Make sure you have paperwork in place such as proof of income (recent payslips), photo identification, evidence of your rental history, and references from previous landlords or property managers.
Having your paperwork organised allows you to act immediately when the right property comes up and get an application to the property manager straight away – if possible, submit your application the same day. Renters who present well and act quickly consistently put themselves ahead of the pack.
You could even submit an application before viewing a property if you’re particularly keen, although some property managers may prefer applications after an inspection.
Also, keep your budget in mind and aim to secure a rental property within your means. In a quieter market, some landlords may be more open to negotiating lease terms, including rent, move-in dates, and minor inclusions such as furnishings, lawn mowing, or garden maintenance.
Remember that colder weather means less ventilation and more condensation (from showers, cooking, heaters and closed windows). That trapped moisture creates the perfect environment for mould to grow, especially in older rental properties. A quick, careful check during inspection can save you a lot of hassle later.
For more tips on landing the right rental property this autumn, contact your local Raine & Horne Property Manager.
