5000 property investors flee market after landlord tax change

The Albanese government’s May budget is being linked to an almost 5000 investor decline in lending activity across Australia. Australia has already recorded an almost 5000 investor wipeout in the aftermath of the federal budget’s May budget changes to landlord tax benefits. June quarter lending data released by the Australian Bureau of Statistics shows there was a 5.4 per cent decline in loans, accounting for a 7711 drop from the first three months of 2026 — in what could be a huge problem for state governments now facing the prospect of monster budget blackholes in lost stamp duty. A shocking 4966 of the loan reduction was investor borrowers, with that category recording an 8.6 per cent reduction from the previous three months — and a more than $4bn reduction in the value of loans being issued to them. RELATED: Record number of homeowners face loan default ‘Already eaten’: Parents’ brutal cost-of-living lie Cheap Aus home spots brace for home price boom The ABS data also revealed a 2746 loan reduction from owner occupiers, marking a wholescale reduction in lending, despite loan numbers typically being heavily tapered by festive season holidays and limited property market activity ...