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What 1 July means for your property market
With the introduction of sweeping property reforms in recent months, investors have had to adapt to a vastly different set of rules. Here is everything you need to know in the post-1 July market.
The property market has undergone significant change in recent months, with changes to negative gearing and the capital gains tax discount foremost in investors’ minds.
In addition, property purchasers across the country will need to have their identities verified under the recently implemented anti-money laundering and counter-terrorism financing (AML/CTF) laws.
The real estate industry was just one of the professions included in the Tranche 2 reforms, alongside lawyers, accountants and conveyancers, which came into effect as of 1 July.
Under the new laws, purchasers will be required to have their identity verified with a licence or passport and to answer standard questions, such as the reason for the transaction.
But beyond national changes, property investors also have to consider those closer to home.
From first home buyer exemptions to crackdowns on underquoting and everything in between, here are the latest property reforms in effect on 1 July 2026:
NSW
The NSW government has cracked down on underquoting amongst real estate agents, introducing harsher financial penalties for those engaging in the tactic.
Following the introduction of the new legislation, agents who are caught underquoting on a listing will face a fine of $110,000 or three times their commission, whichever is greater.
Additionally, businesses will face fines ranging from $55,000 to $110,000 for engaging in dummy bidding at auction.
To enhance clarity throughout the industry, the legislation mandates that a price or price guide be published on all advertising, while agents will be prohibited from advertising a selling price below a previously unsuccessful bid.
“These laws mean that honesty and transparency are now the standard for property sales,” said Minister for Better Regulation and Fair Trading Anoulack Chanthivong.
Victoria
The government will guarantee a departing resident’s bond while they move between dwellings, under the state’s new Portable Rental Bond Scheme.
Under the scheme, tenants will avoid paying a double bond by transferring their current bond to their new property for just a $25 fee.
The government will then be responsible for paying any bond return claimed by the first landlord in the meantime.
Any unpaid amount then becomes a bond repayment owed to the state, due eight weeks after the claim.
As insurance for the scheme, renters with money owed on a previous rental transfer become ineligible to use it.
Additionally, the state introduced new safeguards for homeowners in the event of dodgy tradie work, including the new Home Warranty Insurance.
The measure will allow property owners to make claims sooner for incomplete, faulty, or defective work.
The protections will apply to contracts worth more than $20,000 and cover homes of up to three storeys.
ACT
From 1 July 2026, first home buyers in the ACT will receive a full stamp duty exemption, after the tax was abolished in a bid to strengthen ownership prospects for Canberrans.
In addition to first home buyers, the exemption will also be extended to pensioners, eligible National Disability Insurance Scheme (NDIS) participants, and owner-occupiers purchasing new unit-titled properties to support housing supply.
ACT Chief Minister Andrew Barr said the change to the tax setting would enable more first home buyers to enter the property market.
“We are the first jurisdiction in Australia to abolish stamp duty permanently for first home buyers. It’s a milestone that removes one of the biggest barriers to home ownership,” Barr said.
Additionally, as part of the government’s Missing Middle Housing Reforms, a wider range of multi-occupancy housing, such as townhouses, terraces and low-rise apartments, is to be built on suburban RZ1-zoned land.
Northern Territory
In Darwin, the price cap for the government’s 5 per cent Deposit Scheme was raised from 1 July, giving first home buyers access to a wider range of properties.
The price cap was increased from $600,000 to $750,000, bringing the scheme more in line with the city’s median house price, which is $766,350 according to the latest Cotality data.
When the changes were initially announced in February, Minister for Housing, Claire O’Neil, said it would allow hundreds of Australians to achieve homeownership sooner, while saving tens of thousands on lenders’ mortgage insurance.
“We’re backing in support for first home buyers by tackling our housing challenge at the source – by building more homes for Territorians,” O’Neil said.
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