Policy Updates

Changes to Capital Gains Tax for Property Investors

Recent adjustments to capital gains tax rules are set to impact property investors across Australia.

By NomadicTax Research Team • 5 min read • October 25, 2025

The Australian government has announced changes to the capital gains tax (CGT) framework that will affect property investors starting in 2025. Under the new rules, the discount for CGT on properties held for more than 12 months will be reduced from 50% to 40%. This change aims to address housing affordability issues by discouraging speculative investment in the property market. The government believes that this adjustment will help stabilize housing prices and make home ownership more accessible for first-time buyers. Property investors are advised to reassess their strategies in light of these changes, as the potential tax burden may increase significantly for those holding properties for the long term.