The WA commercial property market could be heading toward a major transition period for long-held assets.
For decades, commercial properties acquired before 20 September 1985 have effectively carried “golden status” under Australia’s tax system as pre-CGT assets.
However, under the Federal Budget’s proposed CGT reforms, that status may materially change from 1 July 2027.
Importantly, the proposal does not appear to retrospectively tax historic gains. Instead, the current understanding is that unrealised gains accrued up to 30 June 2027 would effectively be locked in, while future growth from that point onward may fall into the CGT regime.
For many long-term owners, that changes the psychology around holding tightly held legacy assets indefinitely.
Across Western Australia, there are many family-owned industrial sites, retail properties, service stations and commercial assets that have not traded in 30 to 40-plus years. As a result, the proposed reforms are already beginning to generate increased discussion throughout the market.
While legislation and technical detail are still to come, the implications being discussed across the market could include:
- Increased valuation and succession planning activity
- More restructuring discussions
- Increased off-market transactions
- Greater asset recycling
- Investors targeting tightly held stock ahead of transition dates
The proposed reforms may ultimately influence how owners think about timing, succession planning, intergenerational wealth transfer and long-term asset retention strategies.
For some owners, the discussion is no longer simply about holding indefinitely, but whether there may be advantages in reviewing structures or market positioning ahead of July 2027.
Importantly, this remains proposed reform only, with legislation and technical clarification still to come. However, conversations surrounding legacy commercial assets are already accelerating across WA’s commercial property sector.
If you own a pre-CGT commercial property acquired before 20 September 1985, are you holding, restructuring, or selling before July 2027?
For a confidential discussion around current market conditions, buyer demand and your options ahead of July 2027, contact:
Brodie Keay
0403 552 809
bkeay@brwa.com.au
David Sierakowski
0429 050 944
davids@brwa.com.au
