Detailed advice and guidance on the implications of a Capital Gain event can be provided with calculation on your specific Capital Gains including property, shares, collectables, business assets, business sales, CGT roll – over as well as including the application of the small business Capital Gains Tax Concessions.
Significant changes to Australia’s Capital Gains Tax (CGT) rules will apply from 1 July 2027.
Under the new rules, the current 50% CGT discount for individuals, trusts and partnerships will be replaced with a system that adjusts an asset’s cost base for inflation (known as cost-base indexation). A minimum 30% tax rate will also apply to capital gains that accrue from this date.
Importantly, these changes do not affect capital gains that have accrued before 1 July 2027. Any gain that has built up before this date will continue to qualify for the existing 50% CGT discount (where eligible). Only the increase in value from 1 July 2027 onwards will be calculated under the new rules.
What does this mean?
If you sell an asset such as an investment property, shares or units after 1 July 2027:
- The portion of the capital gain that accrued before 1 July 2027 will generally continue to receive the existing 50% CGT discount (if eligible).
- The portion of the gain that accrues from 1 July 2027 onwards will be adjusted for inflation using the Consumer Price Index (CPI), so that only the real increase in value (after allowing for inflation) is subject to tax.