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June 2025 Newsletter

HEY NEIGHBOUR!

As we dive into winter, the weather isn’t the only thing sending a chill through the air—so are some of the latest developments in politics, property, and yes… football.

Firstly, Australia has made its choice. With the recent federal election now behind us, the Labor Government has secured another term in office. While election campaigns often come with promises of housing affordability and relief for everyday Australians, the reality is shaping up to be something quite different—particularly for property owners, investors, and retirees.

This year will see the introduction of the new superannuation tax for balances over $3 million. Despite the relatively small number of people affected, it’s a reform with big implications, particularly because of one detail: it includes unrealised capital gains. In other words, individuals may be taxed on paper profits that haven’t actually been realised as income—a shift that could set a worrying precedent for broader property and investment taxation in the future.

To add to the tax trifecta, many property owners continue to bear the brunt of exorbitant land taxes. The increases have been quietly climbing year after year, especially in Victoria, and now seem to be a major source of revenue for the state. Between stamp duty, land tax, the upcoming super tax and the controversial capital gains policies, it’s clear that the property sector has become a lucrative target for government revenue.

It's hard not to feel like the burden is being placed squarely on the shoulders of those who have contributed for years to building wealth through real estate. There’s growing frustration among our clients and peers alike—people who have worked hard, followed the rules, and are now being penalised under the guise of reform.

On a lighter note (sort of), winter has officially arrived. The shorter days and temperatures are making us all reach for the woollens and crank up the heating. It’s also the time of year when the property market naturally cools a little—although activity remains steady and we’re seeing continued demand for quality rental properties and investor-grade stock.

And for those of you who follow the footy (like we do at the office), it’s been a rough few rounds for Carlton. Hopes were high earlier this season, but unfortunately the Blues have struggled to deliver consistent form. There’s still time to turn things around, but right now… we’re feeling the pain.

As always, we’re here to help you navigate the changing landscape—be it tax reform, property strategy, or simply staying warm and optimistic this winter. If you have questions about how any of these government changes might affect your property portfolio, superannuation, or future plans, don’t hesitate to reach out. We’re always up for a chat (and a bit of a footy debrief too).

Stay warm and take care,

Carmela

MARKET INSIGHTS
We strive to stay up to date on the latest market trends. Here are a few articles we think are worth reading.

Super Tax Shake-Up: What You Need to Know About the New $3 Million Cap (afr.com)