Compliance
Compliance Essentials Under Australia’s New CGT & Trust Regime
As Australia redefines capital gains tax and trust-tax rules from 2027-28, compliance demands will spike — here’s what businesses, tax agents & individuals must do to avoid surprises.
By NomadicTax Research Team • 5-8 min read • June 17, 2026
## Key Compliance Changes to Anticipate
- From **1 July 2027**, the 50% discount for CGT assets held over 12 months ends; replaced with cost base inflation indexing, and a **30% minimum tax rate** for real gains. ([treasury.gov.au](https://treasury.gov.au/policy-topics/taxation/budget2026-27?utm_source=openai))
- **Negative gearing** of residential property becomes restricted: only **new builds** acquired after Budget night (12 May 2026, 7:30 pm AEST) will qualify for full deductions against non-property income. Losses from established property will be ring-fenced. ([treasury.gov.au](https://treasury.gov.au/policy-topics/taxation/budget2026-27?utm_source=openai))
- From **1 July 2028**, **discretionary trusts** will face a minimum tax rate of 30%, with exceptions (fixed trusts, super funds, certain special trusts). Preparation time is essential. ([treasury.gov.au](https://treasury.gov.au/policy-topics/taxation/budget2026-27?utm_source=openai))
## What Individuals & Tax Agents Should Do Now
- Review client portfolios with CGT exposure. Assets with large paper gains might be worth disposing or assessing valuation as of 30 June 2027.
- Document current cost bases, improvements, holding costs, and ensure records are in good order for indexing calculations.
- Check whether clients are income support recipients (Age Pension, Job Seeker etc.) — these individuals are **exempt** from the 30% minimum on CGT gains. Ensure eligibility criteria are met. ([budget.gov.au](https://budget.gov.au/content/bp1/download/bp1_2026-27.pdf?utm_source=openai))
## Trusts & Entity Structure Compliance
- Trust deeds and entity structure may need review if reclassifying or migrating from discretionary trust to other form by 1 July 2028 to avoid minimum tax. Consider rollover relief opportunities offered between 1 July 2027 to 30 June 2030. ([treasury.gov.au](https://treasury.gov.au/policy-topics/taxation/budget2026-27?utm_source=openai))
- Financial reporting for trusts will need enhanced disclosures, especially when dealing with capital gains, to ensure actual vs minimum tax rates are tracked.
## Reporting & Lodgment & Potential Penalties
- Watch for draft bills passing through Senate; once passed, becomes law — late recognition or misunderstanding could lead to incorrect lodgments. Bills are expected to report by 19 June 2026. ([kpmg.com](https://kpmg.com/us/en/taxnewsflash/news/2026/06/australia-capital-gains-tax-reform.html?utm_source=openai))
- PAYG withholding tables also updated for 2026-27 to reflect tax cuts; ensure payroll and software systems are updated with new rates from 1 July 2026. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/2026-pay-you-go-payg-withholding-tax-tables-0?utm_source=openai))
## Examples to Guide Proper Compliance
- **Sally** buys shares in 2023, still holds them into 2028. On sale, she must split gain into pre-1 July 2027 (old 50%) and post--July 2027 (inflation indexed and possibly subject to minimum 30%) portions.
- **Tom**, an Age Pension earner, realizes a capital gain. Even if nominally taxed under new rules, the **minimum tax does not apply** because he receives means-tested income support in the year.
## Tools & Resources
- Use ATO calculators and fact sheets: Treasury’s CGT explainer, negative gearing guidelines, and trust changes.
- Software updates: ensure accounting or tax prep tools handle valuation at boundary date and split livestock gains accordingly.
- Seek ongoing education: attend webinars, track ATO updates and legislation progress during Senate review.
Compliance under these reforms will require early planning and accurate record-keeping. Acting now helps avoid rushed decisions when new laws come into force.