The new-build tax bill reaches Parliament, and what Melbourne rooms are advertised for

Auctions: 556 scheduled for 11 to 17 October 2026, 418 reported and 214 sold, a 51% preliminary clearance rate by Domain's count, against 69% at the same time last year.3

Asking rents (SQM, week ending 20 October): $692 a week across all dwellings, up 6.1% over 12 months; $831 for houses and $590 for units.1

Vacancy (September 2026): 1.89% in Melbourne, up from 1.78% in August, against 1.39% nationally.1

Interest rates: the cash rate target is 4.60%, after a 0.25 percentage point rise at the 29 September 2026 meeting. The next decision is due at 2.30pm on 3 November 2026.14

Now in effect since 13 October 2026 (Consumer Affairs Victoria): rental providers must notify the renter in advance of a bond claim and provide evidence to support it; keep records showing the property met the rental minimum standards; arrange gas and electrical safety checks every two years for all rental properties; arrange a gas safety check within the six months before any draughtproofing work; and must not charge fees for rental applications or rent payments.9

Rooming house operators, from 13 October 2026: keep records sufficient to show the property meets the rooming house minimum standards, and follow the new bond lodgement and bond claim rules, including notifying the resident at least 3 business days before lodging a bond claim with the Residential Tenancies Bond Authority, with evidence such as invoices, receipts, quotes or photographs.9

Coming from 1 March 2027: new minimum energy efficiency standards begin phasing in.9

Coming from 1 June 2027: a rental provider cannot refuse to enter a rental agreement with a renter who wants to pay their bond directly to the Residential Tenancies Bond Authority, plus changes covering keys and fobs, a cap on lease break fees, and family violence protections.9

Already in effect: from 9 September 2026, renters can pay their bond directly to the Residential Tenancies Bond Authority.9

Sample rooms with their own bathroom, advertised across Melbourne this week, one per suburb. Rents are advertised weekly prices per room, not achieved rents. Where two prices show, the first is the shorter lease and the second the longer lease.12

Some of what we observed on the market this week. Figures are as stated by each advertiser; where the ad gives no price, we use its price guide. The last column is Enable arithmetic: advertised income divided by the number of rooms, shown per room per week.12

One source for every row: SQM Research asking rents and prices, with gross yield worked out by Enable (weekly rent x 52 divided by asking price). Population growth is by state, from the ABS.12

What the numbers show: Melbourne's asking price is about 30% below Sydney's and its asking rent about 25% below. It is also lower than Brisbane and Perth. It is not the lowest: Adelaide, Canberra, Hobart and Darwin are cheaper by asking price. Melbourne's vacancy rate rose from 1.78% in August to 1.89% in September, now second only to Canberra among the eight, which is worth weighing alongside its yield.1

Households of one person, from the 2021 Census, the latest available. Melbourne has the largest number of the eight capitals.13

New this week: from 30 November 2026, land tax assessments will no longer be delivered through BPAY View. Owners who do not register for My Land Tax by 30 November 2026 will receive future assessments by post. Payment options are not changing.10

Residential fixed charge: the emergency services and volunteers fund charge is $139 for residential property from 1 July 2026 (was $136).10

Vacant residential land tax: there is an exemption for land with a residence that was under construction or renovation, or uninhabitable, in the previous year.10

Rooming houses: the State Revenue Office exempts rooming houses that meet its conditions, including registration under the Public Health and Wellbeing Act 2008, use primarily for low-cost accommodation by people with low incomes, at least one room always available for four or more residents, at least 80% occupancy by long-term residents in the previous year, and weekly tariffs below a maximum. For 2026 that maximum is $412.55 a week for single accommodation with lodging only.10

SDA: an exemption applies to SDA enrolled dwellings provided by an SDA provider, and it extends to land where the facility is being built until the earlier of completion or two land tax years from the start of construction.10

Eligibility turns on the detail of each property. The State Revenue Office pages set out the evidence it asks for.

Negative gearing and CGT, second stage: the Treasury Laws Amendment (Tax Reform No. 3) Bill 2026 was introduced on 14 October 2026 and is before Parliament. It legislates the definition of a new residential dwelling and exemptions from the negative gearing limits, and clarifies how the CGT changes apply in more complex cases, including trusts. The Senate Economics Legislation Committee is inquiring into it: submissions close on 29 October 2026, hearings are listed for 5 and 6 November 2026, and it reports by 13 November 2026.7

Negative gearing and CGT, first stage, already law: from 1 July 2027, negative gearing is limited to new builds, and the 50% CGT discount is replaced by cost base indexation and a 30% minimum tax rate on capital gains accruing on and after 1 July 2027. For negative gearing, properties held before 7:30pm AEST on 12 May 2026 are exempt.7

Contribution caps, 2026-27: concessional cap $32,500 (was $30,000). Non-concessional cap $130,000 (was $120,000). Carry-forward of unused concessional cap needs a total super balance under $500,000 on 30 June of the previous financial year.4

Division 296: in effect from the 2026-27 year. An additional 15% tax on the proportion of earnings relating to a total super balance above $3 million, and a further 10% above $10 million. The ATO will begin issuing assessments later in 2027-28.5

SMSF borrowing (LRBA): for arrangements entered into on or after 10 August 2026, limited recourse borrowing can only be used to acquire real property if it is business real property. Existing arrangements, their refinancing and binding contracts exchanged before 10 August 2026 are not affected.6

Age Pension assets test, from 20 September 2026: the full pension limit for a single homeowner is $333,000 ($600,000 non-homeowner), and for a homeowner couple combined $499,000 ($766,000 non-homeowner). Part pension stops at $745,750 for a single homeowner ($1,012,750 non-homeowner) and $1,121,000 for a homeowner couple combined ($1,388,000 non-homeowner).15

Retirement living standards: ASFA's June quarter 2026 figures for ages 65 to 84: a single person needs about $56,166 a year for a comfortable lifestyle and $36,548 for a modest one. A couple needs about $78,998 comfortable and $52,690 modest.8

Land tax: see the SDA exemption above, which can matter to holding costs for an SDA house, including while it is being built.10

Research: market reading like this edition, so decisions start from evidence. Enable Group is a builder that works in this market every day.

Introductions: to finance brokers and property managers. Enable has no financial or commercial alignment with them.

Feasibility assessments: a look at a site to see what could be built on it, and whether the numbers are worth pursuing.

Building: building your own co-living home is another way into the market. What we have observed is that clients building with Enable have paid a lower cost than clients buying on the open market.