Capital Gains Tax Changes from 1 July 2027

From 1 July 2027, significant changes will apply to Australia’s Capital Gains Tax rules.

For affected capital gains accruing from that date, the existing 50% CGT discount will be replaced by an inflation-based cost-base adjustment. A minimum tax rate of 30% will also apply to certain real capital gains.

The reforms may affect property, shares, managed investments, cryptocurrency, business interests and other CGT assets held by individuals, trusts and partnerships.

Existing investments receive transitional protection. Growth accrued before 1 July 2027 may continue to qualify for the existing 50% discount, while affected growth from that date will generally come under the new rules.

Separate negative-gearing changes will also commence on 1 July 2027. Established residential properties held before the Government’s announcement are generally protected, while different restrictions may apply to established properties acquired after that time.

What should investors do now?

• Review their investment and CGT asset records
• Reconstruct missing purchase and improvement costs
• Identify assets that may require a 1 July 2027 valuation
• Confirm carried-forward capital losses
• Compare the consequences of selling before or after the changes
• Obtain advice before transferring assets or changing ownership structures

There is no universal answer that everyone should sell before 1 July 2027. Any decision should consider the expected tax outcome, investment performance, transaction costs, available concessions and the owner’s broader financial objectives.

Download our complete guide for more information about the reforms and practical strategies that may help minimise future capital gains tax.