🚨 Big Shifts Ahead for Trusts & Property Investment in Australia

The Landscape Is Changing

Australia’s property market is facing a double tightening:

• ATO crackdown on trust income-splitting by 2027 – signalling the end of certain tax strategies investors have relied on.

• Major banks like Macquarie and CBA pulling back on trust lending – making it harder for everyday investors to access finance through company or trust structures.

Add APRA’s upcoming debt-to-income lending caps in 2026, and it’s clear: the doors are narrowing for leveraged investors.

What This Means for Investors

• Financing friction: Trust borrowers face longer approvals, stricter guarantor requirements, and in some cases, outright refusals.

• Reduced investor demand: Those who relied on trusts for flexibility may slow or pause acquisitions.

• Rental market pressure: Fewer investor purchases could mean tighter rental supply, pushing rents higher.

• Segment-specific impacts: Investor-heavy pockets (inner-city apartments, dual-occupancy plays, holiday lets) are most exposed. Lifestyle-led regions like the Sunshine Coast remain more resilient thanks to strong owner-occupier demand.

The Bigger Picture

While these changes will reshape investor behaviour, they won’t collapse the market. Prices will still be driven by:

• Interest rates

• Migration flows

• Supply constraints

But the composition of buyers will shift. Expect more owner-occupiers and fewer trust-structured investors.

Practical Takeaways

• Audit your structures early: Don’t wait until 2027. Seek tax advice now.

• Stress-test borrowing capacity: Model scenarios with and without trust structures.

• Diversify finance channels: Build relationships with lenders still open to trust lending.

• Choose assets with broad appeal: Properties that attract both investors and owner-occupiers will hold value best.

My Perspective

As a buyers agent, I see this as both a challenge and an opportunity. Investors will need to be smarter, more strategic, and more resilient. Owner-occupiers may find less competition in certain segments. And for those who adapt early, there’s room to thrive.

💡 Call to Action:
If you’re considering your next move, now is the time to review your structures and borrowing strategy.