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New LVR limits and a possible capital gains tax

Property rules in review

Kelvin Davidson
Last updated: 5 November 2025 | 3 min read
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AI summary

Two potential property rule changes are under review, according to Cotality economist Kelvin Davidson. The Reserve Bank has proposed easing LVR "speed limits," which would likely benefit investors by increasing the allowance for low-deposit lending.

A more uncertain proposal is a 28% Capital Gains Tax (CGT) for investors, which depends on the election outcome. While the LVR change seems probable, the CGT will remain a significant political issue, potentially signaling lower future returns for property investment.

The LVR 'speed limit' change

The capital gains tax proposal

The final takeaway

Author

Kelvin Davidson Kelvin Davidson
Chief Property Economist, Cotality