Counting down to 1 July 2027
Sell before July 2027?
On 1 July 2027 Australia’s capital gains tax rules change.Some owners will pay more, some less, and the only honest answer is arithmetic.Run yours.
For investment properties and other taxable sales. The home you live in (your main residence) is exempt from CGT under both the old and the new rules.
On these numbers, the reform barely moves it.
The difference between the old and new rules on a 2030 sale is under $600 on these numbers.
Sell by 30 June 2027
Current rules: 50% CGT discount
- Estimated sale price
- $1,155,000
- Taxable gain
- $202,500
- CGT payable
- $88,525
- Profit you keep
- $316,475
Sell in 2030
New rules: split gain, indexation + 30% minimum
- Estimated sale price
- $1,337,057
- Taxable gain
- $294,526
- CGT payable
- $131,777
- Profit you keep
- $455,280
Difference in CGT between the two sale dates: $43,252 more if you wait (of which $469 is the reform; the rest is growth in the gain itself).
Your gain in each year: what you keep vs tax
Evergreen: profit you keep. Clay: CGT. Each bar is your whole gain if you sold that year. The two solid bars are the years compared above; pick a different sale year to move the highlight.
General information only, not tax, legal or financial advice. Estimates use the announced rules, legislated resident tax rates and your assumptions; your circumstances, cost base items and timing will change the numbers. Talk to your accountant about the tax and your lawyer about the sale.
Donna Research
Last updated July 3
What actually changes
The 50% discount ends
From 1 July 2027 the CGT discount is replaced by CPI indexation: only your real, above-inflation gain is taxed.
A 30% minimum arrives
Real gains accruing after 1 July 2027 are taxed at no less than 30%, whatever your marginal rate. Income support recipients are exempt.
Old gains are protected
Growth up to 1 July 2027 keeps the 50% discount forever, measured against your property’s value on that date.
Negative gearing narrows
Established rentals bought after 12 May 2026 can no longer offset losses against salary from 1 July 2027. New builds keep full negative gearing.
Sources
- 1.Budget 2026-27 fact sheet: Negative Gearing and Capital Gains Tax Reform Australian Government, May 2026
- 2.Tax reform: Boosting home ownership, reforming negative gearing and capital gains tax Australian Taxation Office, 2026
- 3.Tax reform overview Budget 2026-27, May 2026
- 4.Statement on Monetary Policy: inflation outlook (basis for the 2.5% CPI default) Reserve Bank of Australia, May 2026
- 5.
Donna Research · figures validated against the Treasury fact sheet’s worked examples · updated July 3