InvestorAid founder and property investor Rohit Gehlot is concerned about the Australian government’s tax reforms, and it’s even making him that he should move overseas.
A prolific property investor and buyer’s agency founder is considering a move overseas due to the Australian government’s upcoming tax reforms, including to the Capital Gains Tax.
In 2017, following a decade-long IT career in India, Rohit Gehlot moved to Australia with just $7000 to his name and no job lined up.
After gaining employment at the Commonwealth Bank, he spent years building a 13-property portfolio that’s now worth nearly $15m.
RELATED: From penniless to property mogul: Rate cuts fuel migrant’s success
Vic landlords flee as government reforms, rising costs bite
Shock move by tenant who tried to get Melbourne landlords evicted
His investment properties are located in Victoria, NSW, Queensland and Western Australia.
In 2022, Mr Gehlot established InvestorAid, an independent buyer’s agency which helps Australians build wealth through property investment, that’s based in Bella Vista, Sydney.
Mr Gehlot said that although some items in the Anthony Albanese-led government’s 2026 federal budget will benefit him as an investor, he does not believe the CGT changes will help young Australians wanting to buy a home.
CGT is a tax which must be paid on the profits made when an Australian sells or otherwise disposes of an asset, such as a home.
Rohit Gehlot has built a portfolio of 13 investment properties since 2019.
Under current tax settings, losses from a rental property can be used to reduce other forms of taxable income such as salary and wages.
Presently, someone can reduce their capital gain by 50 per cent if they have owned an asset for at least 12 months and are an Australian resident for tax purposes.
The government’s reforms are set to replace the current 50 per cent CGT discount with inflation-adjusted indexation to restore the taxation of real gains.
The big switches will be grandfathered for existing investments, and new builds will keep the option to use the 50 per cent discount to help boost housing supply.
Mr Gehlot said that while some of the government’s tax reforms will benefit investors, he’s worried about their negative impacts as well.
The reforms will also broadly apply to all standard CGT assets held by individuals, trusts, and partnerships that are subject to CGT outside of superannuation, such as shares and cryptocurrency.
However, Mr Gehlot said that saving a home deposit was not an easy task and many people – especially younger Aussies – invested in other types of assets first, with smaller capital, so that the resulting financial growth could later help them buy a residence.
“Taxing all these gains in the interim at a higher tax rate will just push their dream of owning the home much further away – this is not helping young Australians,” Mr Gehlot added.
Prime Minister Anthony Albanese says the tax reforms will help more young Australians get into the housing market. Picture: NewsWire/Martin Ollman
The investor said he was now thinking about whether remaining in Australia, where he lives with his wife and children, was “the right financial decision”.
New Zealand or another smaller nation, where he would not be taxed so harshly, is looking more appealing at the moment – even if it means he would earn less money day-to-day.
Mr Gehlot said it was likely that many other hardworking professionals and aspirational business people in Australia would come to a similar conclusion.
“Even if someone stays here, they will lose the desire to work hard,” he said.
“The economy, with this, takes a bigger hit and instead of growing, we may see our GDP (Gross Domestic Product) eventually go backwards.”
Mr Gehlot has two investment properties in Victoria, four in NSW, four in Queensland and three in Western Australia. Picture: NewsWire/David Crosling.
He added that the government should focus on improving Australia’s housing supply rather than implementing a more stringent tax regime.
The government’s tax reforms are also set to restrict negative gearing for residential property to new builds from July 1, 2027.
After that, rental losses on existing residential investment properties bought after budget night on May 12, 2026, can only be offset against other residential property income.
“Anyone who plans to sell their investment, their property will more likely be purchased by an owner-occupier now as there are incentives for owner-occupier purchases and many lower deposit schemes, whereas the investor will be disincentivised as they can’t claim negative gearing,” Mr Gehlot said.
“This is will essentially reduce rental stock in the market, creating an upward pressure on rents.”
Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.
MORE: Melbourne investors rethink plans after negative gearing changes
Landlord’s warning over renter renovation of his home
Melbourne suburbs where homeowners are being priced out of an upgrade
English (US) · 