What the new tax reforms could mean for SJB buyers

Insights from Jacob Lay, Director, Giac Capital

The Federal Budget 2026/27 has announced significant changes to how investment property is taxed in Australia, drawing a clear line between new builds and established property. Seashells Jurien Bay sits on the new-build side of that line.

From 1 July 2027, two changes are set to take effect for residential property purchased after Budget night (12 May 2026). Negative gearing on established property would be quarantined — losses able to offset residential rental income or capital gains, but no longer salary or wages. The 50% CGT discount would be replaced with cost-base indexation plus a 30% minimum tax on real gains. New builds are explicitly carved out of both changes.

Because every Seashells villa is a new build, that carve-out puts SJB on the favourable side of the line. New builds retain access to negative gearing, and on eventual sale owners can choose between the existing 50% CGT discount and the new indexation method — a choice not available on established property bought after Budget night. The measures are designed to steer investment toward new housing supply, which over time could support demand for stock in SJB’s category.

How the rules apply in practice differs by villa type and ownership structure. The 4-bedroom Unrestricted Villas are held directly, while the 3- and 2-bedroom Villas are held within the Seashells rental pool, a managed investment scheme. All are new builds, but the precise treatment — along with the impact of borrowing structure, ownership entity and individual circumstances — should be confirmed with your own adviser. SMSF-held property sits outside these changes and continues under existing settings.

Takeaway: SJB is one of the few coastal WA developments completing inside the window where the tax system is being actively re-weighted in favour of new housing supply.

Disclaimer: This information is general in nature and does not constitute personal tax, financial or investment advice. The tax reforms referred to are announced measures and not yet legislated; commencement is scheduled for 1 July 2027. Purchasers should obtain their own advice from a registered tax agent or qualified tax adviser regarding their individual circumstances.