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The 50% capital gains tax (CGT) discount ends on 30 June 2027 for most assets, and a cost base reset applies from 1 July 2027. If you hold assets with a potential capital gain, you have about 12 months to review your position.
This article explains what is changing, the transitional rule that most coverage misses, and how to weigh whether to sell or hold. For the wider picture, see how the 2026 Budget could affect your wealth planning.
If you have a specific question, jump to the FAQs.
Most of the changes received Royal Assent on 26 June 2026, so they are law, not a proposal. Here is the timeline that matters.
| Date | What happens | What it means for you |
|---|---|---|
| 26 June 2026 | CGT changes received Royal Assent and became law | The rules are set, so you can plan with certainty |
| 30 June 2027 | The 50% CGT discount ends and CGT indexation begins | Gains up to this date are worked out under the current rules |
| 1 July 2027 | Assets are treated as effectively reacquired at market value (cost base reset); negative gearing is restricted | Only the real gain after this date is taxed using indexation |
| 1 July 2028 (not yet legislated) | A 30% minimum tax on discretionary trusts begins | If you use a family trust, you will need to prepare for what this means |
Today, if you are an individual or a trust and you hold an asset for at least 12 months, you generally pay tax on only half the capital gain. Complying super funds currently get a one-third discount. That discount has shaped how investors think about property, shares and business assets.
This is the part most coverage misses. From 1 July 2027, your CGT assets are effectively treated as sold and immediately reacquired at their market value on that date. It is a reset on paper, not an actual sale, so it does not trigger a tax bill by itself.
The reset draws a clean line. The gain built up to 30 June 2027 is worked out under the current rules. Only the real gain after 1 July 2027 is taxed under indexation, which operates to increase the purchase cost base in line with inflation rather than halving the gain.
| Feature | Up to 30 June 2027 | From 1 July 2027 |
|---|---|---|
| Discount for individuals and trusts | 50% on assets held 12+ months | No discount; indexation applies to gains after 1 July 2027 |
| Complying super funds | One-third discount | No change |
| Assets bought before 20 September 1985 | Outside the CGT net | Brought in via the deemed acquisition from 1 July 2027 |
| Cost base | Original cost base | Reset to market value on 1 July 2027 |
One point catches long-term owners off guard. Assets bought before 20 September 1985, which have sat outside CGT until now, are drawn into the new deemed acquisition and cost base rules from 1 July 2027. If you hold a genuinely old asset, it is worth reviewing the value and your plans for the asset before the change rather than after.
If you hold assets in a discretionary trust, the discount change is only part of the picture. From 1 July 2028, discretionary trusts also face a separate 30% minimum tax, and a restructure rollover window opens on 1 July 2027. The mechanics of this change remain under consultation. A restructure may also carry state duty and land tax costs, so a sell-or-hold question in a trust often sits alongside a restructure question.
Self-managed super funds are treated differently. Complying super funds keep their existing one-third CGT discount, and the new 30% minimum tax on discretionary trusts doesn't apply to super funds either. In practice, neither headline change creates a new sell-or-hold decision for your SMSF.
The decision comes down to your position, not the calendar. Weigh these factors with advice:
The size of your unrealised gain, and how much of it built up before 30 June 2027.
Your marginal tax rate now versus your expected rate in future years.
Whether the asset still fits your strategy, aside from tax.
Transaction costs, and the risk of selling a good asset to beat a deadline.
How the change interacts with negative gearing if the asset is a rental property.
For discretionary trusts, how the discount removal and 30% minimum tax flow through your structure, and whether a restructure before the 2027 window is part of the plan.
For SMSFs, your fund's discount and tax treatment are likely unchanged. It is still a good idea to review your setup for fit with your retirement strategy.
If you run a business, the small business CGT concessions may also affect your position, so factor them in. The final CGT changes did include an expansion of the active asset reduction so there may be some additional relief for eligible taxpayers.
Priya is retiring in 2027 and will sell her commercial premises as part of her exit. She bought them for $700,000 and they are now worth $1.5 million, a gain of $800,000. She is on the top marginal rate this year.
Because she is selling anyway, selling before 30 June 2027 locks in the 50% discount on the full $800,000 gain, so $400,000 is taxable. Holding past the reset gives her no extra benefit and adds uncertainty about how the pre-2027 gain is treated later. It would appear for Priya, acting before 30 June 2027 is the better move.
Tom owns an investment property he plans to keep for another 10 years. He bought it for $500,000 and it is now worth $900,000, a gain of $400,000. He is a few years from retirement, when his income and tax rate will drop.
If Tom rushes to sell before 30 June 2027 just to use the discount, he triggers CGT now at a high rate, pays agent and legal costs, and loses a decade of growth on an asset he wanted to keep. If he holds, the $400,000 gain to 30 June 2027 is locked in at the transition point and only later growth is indexed, and he can sell in retirement on a lower rate. Based on this information for Tom, holding seems the better option, and selling early would leave him worse off.
| Factor | Priya | Tom |
|---|---|---|
| Selling anyway? | Yes, retiring in 2027 | No, holding for 10 years |
| Tax rate outlook | Top rate now | Lower in retirement |
| Gain to 30 June 2027 | $800,000 | $400,000 (only paid when the asset is actually sold) |
| Better move | Sell before 30 June 2027 | Hold |
Same rule, opposite answers. The figures are illustrative, to show how the decision can go either way, not advice or a projection. On eventual sale, Tom's CGT will be the final sale price less the indexed $900k cost base, plus $200k ($400k x 50% discount).
The biggest risk is rushing. Selling a well-performing asset just to lock in the current discount could cost more than it saves once you count transaction costs, lost future returns and your actual tax position. The opposite mistake is assuming 12 months is plenty and leaving the review until it feels urgent. Neither is a plan.
Yes – for most assets apart from new residential dwellings. The 50% CGT discount ends on 30 June 2027 and is replaced by CGT indexation from 1 July 2027. The change is law, following Royal Assent on 26 June 2026.
It ends on 30 June 2027. Because your assets are effectively treated as effectively reacquired at market value on 1 July 2027, gains built up to 30 June 2027 are worked out under the current rules, and gains after that date fall under indexation. For new residential dwellings there is a choice to retain he 50% discount or use the indexation method
CGT indexation. Instead of halving the gain, indexation lifts your asset's cost base in line with inflation between the 1 July 2027 reset date and the date you sell, so tax applies only to the real (inflation-adjusted) growth from that point. This applies to the post-2027 portion of your gain only. Any gain locked in up to 30 June 2027 keeps the 50% discount and is added back in separately when you actually sell, rather than being indexed itself
There is no blanket grandfathering. The cost base reset at 1 July 2027 means the gain up to 30 June 2027 is treated under the current rules, and the gain after that date is indexed.
There is no blanket answer. It depends on your gain, your tax rate, the property's role in your plan, transaction costs and the negative gearing change. Model it with your advisor rather than acting on the deadline alone.
Yes. Assets acquired before 20 September 1985 come under the new deemed acquisition and cost base rules from 1 July 2027, so long-held assets that were previously outside CGT should be reviewed.
The discount change flows through the trust, and from 1 July 2028 discretionary trusts also face a separate 30% minimum tax. If you are weighing a sell-or-hold decision in a trust, factor in the 1 July 2027 restructure rollover window as well.
If you hold assets with a potential capital gain, the next 12 months are the window to review your position with clear numbers, not guesswork. A Findex tax advisor can model your sell-or-hold options across tax, cash flow and your longer-term plan.
While all reasonable care is taken in the preparation of the material in this document, to the extent allowed by legislation Findex (Aust) Pty Ltd accept no liability whatsoever for reliance on it. All opinions, conclusions, forecasts or recommendations are reasonably held at the time of compilation but are subject to change without notice. Findex (Aust) Pty Ltd assumes no obligation to update this material after it has been issued. You should seek professional advice before acting on any material.
This document contains general information and does not constitute legal or taxation advice. If you need legal or taxation advice, we recommend you speak to a qualified adviser.
The title 'Partner' conveys that the person is a senior member within their respective division and is among the group of persons who hold an equity interest (shareholder) in its parent entity, Findex Group Limited. The only professional service offering which is conducted by a partnership is external audit, conducted via the Crowe Australasia external audit division and Unison SMSF Audit. All other professional services offered by Findex Group Limited are conducted by a privately- owned organisation and/or its subsidiaries.
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