‘Year of cuts’ underway as RBA chops rates to lowest since 2023!
Today (20 May 2025) the Reserve Bank of Australia delivered the widely expected 25 basis point cut, lowering the cash-rate target from 4.10% to 3.85%. Markets had already priced in the move after March quarter data showed trimmed mean inflation back inside the 2–3 % band at 2.9 %. With upside inflation risks now “more balanced”, the Board pivoted towards supporting demand.
Why this matters for property investors
- Higher borrowing power – A 25 bp cut typically boosts serviceability by ~ 4 – 5 %, giving buyers more fire power – especially in the sub-$1 million bracket.
- Renewed buyer pressure – Cheaper finance lures first-home buyers and upgraders back, intensifying competition for well priced stock.
- Lower holding costs – On a $750k loan, today’s reduction trims repayments by about $114 a week.
Window of opportunity – Listings remain tight and sentiment is turning; the asset that was out of reach last quarter may now be within budget.
Next: Watch how quickly lenders pass the cut through to variable rates, track auction clearance rates, and monitor fresh listing volumes. Rate relief rarely arrives alone, momentum usually builds up fast.
Buying Across Borders: Why Differences Between Australian States Matter More Than You Think
Australia’s property market does not play by a single rulebook. Investors often assume they can replicate a winning deal across borders. That is a mistake. Every state operates its own legal, procedural, and regulatory system. What works in Brisbane may not in Perth. What is standard in Melbourne can be illegal in Sydney. This week, we dissect the core differences in how property is bought and sold across all states. If you are considering buying interstate, this is essential knowledge.
What Changes from State to State
| QLD | WA | SA | VIC | NSW | |
|---|---|---|---|---|---|
| Contract Format | REIQ standard | REIWA Offer & Acceptance | Form 1 disclosure | LIV/REIV standard | Contract for Sale of Land |
| Cooling-Off Period | 5 business days | None | 2 business days | 3 business days | 5 business days |
| Building & Pest Clause | Buyer can terminate | Seller can rectify | Depends on contract | Optional clause | Optional clause |
| Deposit Process | Two-stage structure | Negotiable | Standard 10% | Standard 10% | Standard 10% |
| Conveyancing Professional | Solicitor or conveyancer | Licensed settlement agent | Solicitor or conveyancer | Solicitor or conveyancer | Solicitor or conveyancer |
| Condition Periods | 14 days typical | 21 days typical | Negotiable | Negotiable | Negotiable |
| Vendor Disclosure | Minimal | Minimal | Mandatory (Form 1) | Mandatory (Section 32) | Full statutory disclosure |
These updated limits significantly increase purchase power for eligible first home buyers and alter market access across major and regional centres.
Comparison: Labor’s Scheme vs All Current Grants & Incentives (May 2025)
| Scheme | Deposit Required | Government Support | LMI Waived? | Income Cap | Relationship Rules | Coverage |
| Labor’s 5% Deposit Guarantee | 5% | LMI waived (no cash) | Yes | None | None | Nationwide, uncapped |
| First Home Owner Grant (NSW) | 5%+ | $10,000 (new homes only) | No | None | None | NSW only |
| Stamp Duty Exemption (VIC) | 5%+ | Full exemption < $600k; concession < $750k | No | Yes | No | VIC only |
| Help to Buy (Federal Shared Equity) | 2%+ | Up to 40% equity contribution | Yes | $90k (single), $120k (couple) | Yes | 10,000 place cap |
| First Home Super Saver Scheme | 5%+ | Withdraw up to $50,000 from super | No | None | None | Nationwide |
| QLD First Home Concession | 5%+ | Up to ~$15,925 stamp duty exemption | No | None | None | QLD only |
| SA First Home Owner Grant | 5%+ | $15,000 (new homes only) | No | None | None | SA only |
| WA First Home Owner Grant | 5%+ | $10,000 + stamp duty discounts | No | None | None | WA only |
South Australia: Form 1 provides a clear legal framework. The system is transparent and logical for conventional buyers. Risks are still present, but manageable for informed individuals.
Victoria: Strong disclosure rules and structured processes help reduce uncertainty. However, regulatory change and tax volatility mean investors still need precision in execution.
New South Wales: Robust disclosure requirements assist due diligence, but timeframes are tight and competition is intense. Sydney in particular is no place for inexperience.
Queensland: Buyer protections are lighter than they appear. Critical steps like building and pest conditions and finance clauses demand strict timing. Errors are expensive.
Western Australia: No cooling-off. Different contract forms. Seller-friendly defect clauses. Uses licensed settlement agents rather than solicitors. This is a technical market that punishes inexperience.
The Bottom Line
Buying property in Australia means navigating a complex and fragmented legal landscape. One overlooked regulation can unravel an entire deal. These state-by-state differences aren’t just academic, they directly affect your speed, risk exposure, and negotiating power. For individual buyers, not understanding the legal nuances of each state isn’t just a disadvantage – it’s a serious liability.
Division 296: The Tax That Could Reshape SMSF Property Investment
The Australian Parliament is expected to approve Division 296 in the coming weeks. This new tax will target superannuation balances above three million dollars, applying an additional 15 percent tax on all earnings above that threshold. But here is the critical part. The definition of “earnings” includes unrealised capital gains. This means SMSFs that hold property, particularly those in high growth corridors like beach suburbs, or commercial assets, could face enormous tax bills on assets that have not even been sold.
This is not a theory, it is real, proposed, and expected to take effect from 1 July 2025, pending parliamentary approval. The three million dollar threshold is not indexed, meaning more investors will be caught each year as asset values rise.
For SMSFs holding illiquid property assets, especially rural, NDIS, or specialised commercial sites, the pressure to generate cash to pay tax on paper gains is going to force some sales. It is a risk for investors with long term strategy and capital preservation.
Next Step: Speak With a Strategic Property Advisor
At Rising Returns we specialise in helping investors navigate market cycles with precision.
Whether you are planning your next portfolio move, assessing property purchases, or reviewing your buyer’s agency agreement, our team can help you make the right decisions in a fast shifting market.
📞 Call us now or book a strategy session online to take advantage of this new policy landscape before competition intensifies.
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