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Real Estate Insight

Capital gains tax

Capital gains tax changes from 1 July 2027, explained

From 1 July 2027 the 50% CGT discount is replaced by inflation indexation for new growth, with a 30% minimum tax. Here's what that means for property and shares you already own, and for what you buy next.

By the Real Estate Insight team · Last reviewed 4 October 2026 · How we check our numbers

Before 1 July 2027

Growth to 30 June 2027

50% discount if held 12 months. Kept even if you sell years later.

From 1 July 2027

Growth after 30 June 2027

Taxed in full above inflation (CPI-indexed cost), with a 30% minimum tax.

Always

New homes, your own home

New homes can keep the 50% discount on the whole gain. Your main residence stays exempt.

Calculate the CGT on your property

The split on 30 June 2027

Every asset you own on 30 June 2027 is treated as sold just before 1 July 2027 and bought back straight away, at its value on that date. Two things follow:

  • The gain to 30 June 2027 is "deferred". It's worked out under the old rules, keeps the 50% discount if you'd held the asset 12 months, and is taxed only when you actually sell.
  • The value on 30 June 2027 becomes your new cost. Growth from there is taxed the new way.

For property, that value can come from a valuation (done at any time, looking back to the date) or from Treasury's draft apportioning formula. A higher value isn't automatically better: if the property grows more slowly than inflation afterwards, a lower value can mean less tax. The CGT calculator compares the two.

Indexation instead of the discount

For growth after 1 July 2027, your cost is indexed by CPI and the gain above it is taxed in full. Whether that beats the old 50% discount depends on how fast the asset grows compared with inflation. Treasury's own examples, for a $500,000 asset bought in July 2027 and held 10 years with 2.5% inflation:

Annual returnTaxable gain, indexationTaxable gain, 50% discount
2.5% (Ben)$0$70,021
5% (David)$174,405$157,224
7.5% (Kate)$390,474$265,258

Roughly, the two systems tax the same when growth is about twice inflation. Grow slower and you pay less than before; grow faster and you pay more.

The 30% minimum tax

Gains made after 1 July 2027 carry a minimum tax of 30% (check whether you'd pay a top-up). It's a top-up, not a flat rate: if your ordinary tax on that part of the gain already comes to 30% or more, nothing extra is due. Treasury's example: Jack earns $25,000 and makes a $10,000 gain. His ordinary tax on it is $1,400, so he pays a $1,600 top-up. It mostly affects people with low incomes in the year they sell, such as early retirees. Anyone on an income support payment that year is exempt, and the deferred gain from before July 2027 is never subject to it.

New homes

A new residential dwelling can use the 50% discount on its whole gain instead of indexation and the minimum tax, whichever leaves you better off. A later buyer of the same dwelling doesn't get that choice. The same definition of "new" applies as for negative gearing, and it isn't final yet.

Checked against Treasury

Our calculators reproduce Treasury's worked examples: Jane's $228,252 tax bill (ours is $228,469, because the Act rounds the indexation factor to three decimals), Jack's $1,600 top-up, and the apportioning formula's $993,429.55 to the cent. The full list is on our methodology page.

Questions people ask

Is the 50% CGT discount being abolished?
For gains made from 1 July 2027 by individuals and trusts, yes: it's replaced by indexing your cost for inflation. Gains made before that date keep the discount, even if you sell much later. New residential dwellings can keep using the discount.
Are the CGT changes retrospective?
No. Growth up to 30 June 2027 is taxed under the old rules. Only growth after that date is taxed the new way.
Do the changes apply to assets I already own?
Yes, to their growth after 30 June 2027. Everything you own is treated as sold and bought back on that date, at its value then. The gain to that point waits until you sell and keeps the discount.
Will I have to pay tax on 1 July 2027?
No. The deemed sale on 30 June 2027 doesn't create a tax bill. You pay when you actually sell.
What is the 30% minimum tax?
A floor on the tax on gains made after 1 July 2027. If your ordinary tax on that part of a gain is less than 30%, you pay a top-up to 30%. It doesn't apply to gains made before July 2027, and people receiving an income support payment in the year of the sale are exempt. See the CGT calculator for your numbers.
How does indexation work?
Your cost (from 1 July 2027, or from when you buy if later) is increased by the change in CPI between the quarter you bought or the start date and the quarter you sell. Only the gain above that indexed cost is taxed. The factor is worked out to three decimal places.
How do I work out the value on 30 June 2027?
With a market valuation, which can be done after the date, or for real property with Treasury's apportioning formula, which grows the purchase price at one steady daily rate from purchase to sale. Listed shares use their market price. You don't need to do anything on the day.
Do the changes affect my home?
No. The main residence exemption is unchanged, so there's no CGT on a home you've lived in for the whole time you've owned it.
What about shares, ETFs and crypto?
They're covered too. Their 30 June 2027 value is the market value: Treasury's formula is only for real property and assets without a readily ascertainable value.
What about assets bought before September 1985?
Pre-CGT assets stop being exempt for growth after 1 July 2027. Growth up to then stays tax-free.
Do companies and super funds pay more?
No. Companies never had the discount, and super funds keep their existing treatment. The indexation regime applies to individuals, trusts and partnerships. Foreign residents get no discount and no indexation.

Sources