Capital gains tax
Until 30 June 2027
- Individuals, trusts and partnerships that hold a property for more than 12 months pay tax on half the gain (the 50% discount).
From 1 July 2027
- The 50% discount is replaced by indexation: your cost base rises with inflation (CPI), so only the gain above inflation is taxed. This applies to Australian residents holding for 12 months or more.
- A 30% minimum tax applies to net capital gains. People on certain income support payments are exempt.
- Companies, super funds and foreign residents do not get indexation.
If you own a property on 30 June 2027: it is treated as sold and bought back at its market value on that date. The gain up to that value keeps the 50% discount and is taxed when you actually sell. Keeping evidence of that market value, such as a valuation, will matter.
New homes and affordable housing: owners may choose to keep the 50% discount, or use indexation instead. If they keep the discount, the 30% minimum does not apply.
Your main residence exemption does not change.
Estimate your CGT →Negative gearing
- Affected: established residential dwellings acquired after 7:30pm (AEST) on 12 May 2026, the night of the Federal Budget.
- From 1 July 2027: net rental losses on those dwellings can only be deducted against income from residential dwellings — not against salary or other income.
- Not affected: dwellings acquired before the cut-off, and new residential dwellings.
What to watch
- ATO guidance on how the 30 June 2027 market value should be worked out and evidenced.
- Which CPI figures are used for indexation.
- Exactly how “acquired” and “new residential dwelling” apply to your situation.
- Separately announced measures that are not in this Act, such as a 30% minimum tax on discretionary trust distributions from 1 July 2028.
This page is general information, not tax or financial advice. Speak to a registered tax agent about your situation.