A Perth Property Investors’ Guide To The 2025 Federal Budget
Friday, 30th of May 2025
With the re-election of the Labor Government, property investors in Perth have been handed a welcome dose of certainty. This year’s Federal Budget delivered continuity over disruption, preserving key policies that support the property market and sending a strong signal to investors. We believe this outcome reinforces confidence in the WA investment landscape and strengthens the long-term outlook for our clients.
Here’s a closer look at the biggest takeaways from the budget and what they mean for property investors in Perth and across Western Australia.
Tax Policy Stability Driving Confidence for Perth property investors
One of the most significant wins for property investors is the federal government’s decision to leave negative gearing and capital gains tax (CGT) arrangements untouched. These are two of the most important tax mechanisms that help property owners generate solid returns, and keeping them intact provides much-needed predictability.
Historically, talk of changes to negative gearing or CGT has caused investor hesitation. But with Labor choosing not to introduce sweeping tax reforms, investors can move forward with confidence. This policy stability also helps underpin strong rental yields and long-term capital growth – both key priorities for anyone holding investment properties in Perth.
Adding to that certainty is the absence of any surprise tax changes across the board. For those planning their FY2025 strategy, this budget offers a clear path ahead. No curveballs, no last-minute legislation, just a consistent and transparent environment for building or expanding your portfolio.
National Housing Investment and Local Affordability Work in WA’s Favour
While the budget includes major investment in housing affordability, that doesn’t come at the cost of investor opportunity, if anything, it enhances it.
Billions have been committed to building new homes across Australia, including in WA. While the aim is to address housing shortages, this construction pipeline will help reduce the pressure on existing rental stock. For investors, this supports a more balanced and sustainable market, keeping tenant demand high while gradually improving housing availability.
At the same time, Perth remains one of Australia’s most affordable capital cities. In contrast to Sydney or Melbourne, where entry prices remain out of reach for many, Perth offers investors the chance to access high-performing suburbs with lower upfront investment. The combination of strong yields, affordability, and now a steady federal backdrop makes WA one of the country’s most attractive places to invest in property.
Population Growth and Regional Boosts Are Driving Rental Demand
One of the lesser-discussed but powerful factors in the budget is Labor’s continued support for skilled migration – a major growth engine for WA.
Perth in particular stands to benefit from this population influx. Migrants often rent before buying, which places immediate demand on local rental markets. As population growth continues across the metro area and into regional WA, we expect strong rental performance in both established and outer suburbs.
The budget also introduced support for large-scale residential projects and investment in regional growth. This is good news for investors eyeing fringe suburbs or markets like Mandurah and Bunbury. With more infrastructure and government backing, these locations could see a rise in liveability, tenant interest, and long-term capital growth potential.
Energy Efficiency Grants Offer Landlords a Smart Upgrade Path
A standout feature of this year’s budget is its strong focus on sustainability. Federal programs are currently available to support landlords with grants and rebates for energy-efficient upgrades to rental properties. On top of this, local initiatives are also making it easier to invest in greener solutions.
The City of Perth, for example, offers sustainability grants to eligible residential buildings, including rental homes and strata properties. These grants can assist with upgrades like solar panel installations, energy-efficient lighting, insulation improvements, and water-saving fixtures. This presents an excellent opportunity for Perth landlords to future-proof their properties while saving on long-term costs.
Energy-efficient upgrade benefits to Perth property investors:
- They help reduce long-term running costs, lowering energy bills and ongoing expenses for landlords.
- They make properties more attractive to tenants, especially younger or eco-conscious renters who actively seek out sustainable living options.
If you own an older investment property in an established Perth suburb, now could be the perfect time to explore these upgrade options. Combining local and federal support may allow you to complete improvements at a significantly reduced cost.
The WA Rental Market Remains Resilient
Despite economic shifts and global uncertainty, WA’s rental market continues to perform.
According to REIWA, the vacancy rate in Perth sat at 2.4% in April 2025 – A healthy increase from the ultra-tight 0.5% seen in April 2024.
This increase in availability may relieve some pressure for tenants, but it still signals a strong and balanced market for investors. With demand remaining high and population growth projected to continue, landlords are well-positioned to enjoy consistent income and long-term capital appreciation.
Our Perspective For Perth property investors: Stay the Course
At PPM, we believe this federal budget sends a strong message of reassurance to property investors. With key tax settings unchanged, increased investment in housing infrastructure, and new sustainability incentives, Perth property investors have every reason to stay the course.
We’ve worked with hundreds of investors across WA, and we know the value of a steady hand during times of change. Now is the time to hold your asset, make smart improvements, and take advantage of a market that still leans in your favour.
If you’re looking for guidance or would like to review your portfolio’s performance, our award-winning property managers are here to help. We invite you to browse our awards and recognitions for a look at our past successes, or if you’d like to know the current value of your investment property, we encourage you to get in touch with us today to request a free appraisal.
