Tax Planning
Preparing for Australia’s New Capital Gains Tax Landscape From 1 July 2027
The 2026 Budget introduces sweeping changes to how capital gains will be taxed for assets held from 1 July 2027—understanding these reforms now can help you protect existing investments and plan future ones.
By NomadicTax Research Team • 5-8 min read • June 11, 2026
## What’s changing?
The Federal Budget 2026-27 proposes several reforms to **Capital Gains Tax (CGT)**, set to take effect **1 July 2027**. The key changes include:
- A **minimum tax rate of 30%** will apply to *real capital gains* accruing from that date. ([community.ato.gov.au](https://community.ato.gov.au/s/question/a0JMo0000057pEH/p-00420353?utm_source=openai))
- Assets held before 1 July 2027 will be split: gains accrued before that date taxed under current rules (including 50% CGT discount), and gains accruing after treated under the new regime. ([community.ato.gov.au](https://community.ato.gov.au/s/question/a0JMo0000057pEH/p-00420353?utm_source=openai))
- Proposed inclusion of **indexation**: cost base adjusted by inflation up to 1 July 2027. The 50% discount remains, but only for gains accrued before that date. ([community.ato.gov.au](https://community.ato.gov.au/s/question/a0JMo0000051pYfMAI/p00419654?utm_source=openai))
## What to do now: Practical steps
These reforms are not law yet. But you can take action today to position yourself:
- **Review your investment timeline.** For property or shares you currently hold, gains prior to 1 July 2027 are treated under old rules. If you expect a major gain, consider whether realising it before that date makes sense.
- **Keep excellent records.** You’ll need accurate cost bases and valuation as of 1 July 2027. Obtain independent valuation if needed for real estate or high-value assets.
- **Assess whether a structure change helps.** For instance, holding via trust or company may affect how gains are shared among beneficiaries or shareholders, though tax changes affect individuals the same.
## Examples
- **Sarah bought shares in 2019** for $50,000. By 1 July 2027 their value is $80,000. She sells in 2028 for $100,000. Gains split: $30,000 (accrued pre-1 July 2027) taxed under old rules—with 50% discount for individuals; $20,000 (accrued after) taxed with minimum 30% rate and maybe no discount, depending on status.
- **John owns rental property** acquired in 2015. If he sells after 1 July 2027, part of the gain (pre-30 June 2027 portion) would retain current CGT discount; remainder subject to new minimum taxation.
## Risks and caveats
- These reforms are **proposals** and haven’t passed Parliament. Details may change—check final legislation. ATO guidance may refine how “real gains”, discount application, and indexation work.
- Complex valuation for assets with mixed use (e.g. partial business use, renovation). Seek advice.
## Summary
If you hold assets expected to yield capital gains—shares, real estate, etc.—these reforms could significantly impact your tax liabilities from July 2027. By planning ahead now, retaining valuation documentation, and considering timing of disposals, you can manage exposure and optimise tax outcomes.
**Action items:**
- Identify assets likely to produce high gains.
- Estimate gains under current vs proposed rules.
- Consult a tax professional to model scenarios given your personal or business structure.