Status: Announced · effective 2027-07-01
CGT 1 July 2027 reform — full breakdown
Last reviewed:
The current 50% capital gains discount (Division 115 ITAA 1997) for individuals holding assets more than 12 months is proposed to be repealed for disposals on or after 1 July 2027. In its place:
• Cost base would be indexed for inflation (broadly restoring the pre-1999 indexation mechanic).
• A minimum 30% tax rate would apply to net capital gains for high-income taxpayers.
• Small business CGT concessions (Division 152) are not in scope of the announced change.
• Superannuation funds, including SMSFs, are unaffected (already at a 10% effective rate on assets held >12 months).
Decision relevance: disposals planned for late FY 2026-27 vs early FY 2027-28 carry materially different tax outcomes. This is a timing question worth running past a registered tax agent before transacting in the months either side of 30 June 2027.
Citation. Source: [verify Bill name + Act reference once Royal Assent confirmed]. Track ATO updates at ato.gov.au and Treasury consultation papers at treasury.gov.au.
Not tax advice. This is an editorial summary of an announced reform whose precise mechanics, transitional provisions, and effective dates may shift before commencement. Do not rely on this page to plan a transaction — consult a registered tax agent.