CGT Stays, Wealth Tax Ruled Out — Investor Tax Certainty Meets the Sharpest Housing Correction in Years

The federal government has confirmed it will retain the existing capital gains tax (CGT) framework and ruled out a wealth tax, drawing a clear line on its tax agenda. The clarity lands at a pivotal moment: Australia's housing markets are facing what analysts are calling their sharpest correction in years, with auction clearance rates recently slumping to their weakest levels since 2020.

What the tax certainty means

For property investors — many of them self-employed business owners — removing the threat of a wealth tax and preserving CGT settings reduces a major source of policy uncertainty. Investors can plan acquisitions, refinances and exits without bracing for a structural change to how gains are taxed.

A market under pressure

At the same time, the broader picture is challenging:

• Auction clearance rates have fallen to multi-year lows as vendors hesitate
• Earlier rate increases continue to feed through to repayments, squeezing serviceability
• Some major banks have flagged price falls and signalled more conservative lending

Risk and opportunity for borrowers

A correcting market cuts both ways. Falling prices can erode equity and tighten how much mainstream banks will lend — but they also create entry points for well-prepared buyers and investors. The challenge is access to finance when big banks are pulling back.

This is where flexible, non-bank lending matters:

• Alt Doc loans keep credit flowing to self-employed investors whose income is strong but non-standard
• Bridging finance helps buyers act on opportunities before an existing property sells in a slower market
• Commercial and private funding support investors repositioning portfolios while values move

The MPFG view

Policy certainty on tax is welcome, but it doesn't change the reality that bank credit is tightening just as opportunities emerge. Borrowers who can secure flexible finance are best placed to act. As always, investment and tax decisions should be made with licensed advisers.

This article is general information only and not financial, tax, or investment advice.

Source: Australian Broker (brokernews.com.au), 23 June 2026.