19/05/2026
After the Budget night, there are changes on Capital Gains Tax.
The 2026 Federal Budget overhauled Australia's Capital Gains Tax (CGT) rules, replacing the flat 50% CGT discount with an inflation-adjusted cost base (indexation) and introducing a minimum 30% tax on net capital gains. These changes take effect from July 1, 2027
Key Changes Coming in 2027
• Inflation Indexation: Instead of a flat 50% discount, the purchase cost of an asset held for more than 12 months will be adjusted for inflation, ensuring only "real" gains are taxed.
• 30% Minimum Tax: Net capital gains will be taxed at your marginal tax rate, but with a minimum effective tax rate of 30%.
• Pre-1985 Assets: The permanent CGT exemption on assets acquired before September 20, 1985, will be removed for future gains.
Transitional Arrangements
• Grandfathering Existing Gains: The new rules only apply to capital gains arising after July 1, 2027. Gains accrued prior to this date will retain the 50% discount.
• New Residential Builds: Investors who buy or build new residential properties will be allowed to choose between the old 50% CGT discount and the new inflation indexation method
