Property investors rush to beat huge tax changes before 2027

Property investors are scrambling to lock in valuations a year ahead of schedule, as a looming tax shake-up is set to cost Australians $4.5bn.

As part of what the Albanese government has called a once-in-a-generation tax reform, every investment property will have to be valued.

Property valuation company Opteon says there has already been a 30 per cent spike in inquiries, as investors try to lock in a valuation ahead of the July 1, 2027 tax changes.

Opteon estimates about 2.5 million investment properties are potentially affected, based on

about 2.3 million residential properties and 250,000 commercial and agribusiness properties.

Opteon managing director Australia and New Zealand Scott Chapman told NewsWire investors should prepare themselves for the tax changes.

“The assessment itself can’t be done until after July 1, 2027, but we are getting a lot of inquires about people wanting to either book now so they can be first movers,” he said.

“We are also getting asked if they could do the inspection component now so they have it ready, and provided the condition of the property hasn’t changed in a year’s time, they can use that information for the valuation.

“It has been fascinating to watch consumers wanting to be well organised.”

Mr Chapman said while there were advantages to having a property valued as close to July 1, 2027 as possible, valuers could retrospectively value at property.

Australians will be asked to pay a whopping $4.5bn in additional tax obligations, as a critical change from the government passes through parliament.

The CGT and negative gearing reforms were introduced to parliament on the last sitting day in May.

This means assets including shares, property and personal collectables all have to be valued as part of the tax rules.

In a submission to the government on the capital gains tax and negative gearing tranche 2 exposure drafts, Wilson Asset Management warns Australians will pay up to $4.5bn to be tax compliant.