Oct 13, 2026 Joel Hernandez

Capital Gains Tax changes: Practical steps for investors

The Australian tax system is entering a period of important change, with new Capital Gains Tax (CGT) rules due to apply from 1 July 2027. The proposed 2026/27 Federal Budget changes are now law, so investors, business owners and families should start considering how future asset sales and succession plans may be affected.

Under the new rules, the current 50% CGT discount for individuals, Trusts and Partnerships will be replaced with an approach that combines cost-base indexation for inflation and a minimum 30% tax on capital gains. The changes will apply to a wide range of commonly held assets, including residential and commercial investment properties, listed and unlisted shares, managed fund investments, goodwill and other business assets.  While the family home will not be impacted, a holiday house with be caught by these changes.

The new measures do not apply to superannuation, with the concessional rate of tax on capital gains in super (essentially 10% tax) remaining unchanged.

The new measures will, however, apply to assets purchased before the introduction of CGT (20^th September 1985) resulting in existing “pre-CGT” assets, which were previously tax free on sale, losing that status from 1^st July 2027.

Transitional rules apply to protect gains derived before 1 July 2027 (including for pre-CGT assets) so investors will generally need to determine the value and cost base of relevant assets at that date, and understand how the new rules will apply going forward.

Although there is no need for immediate decisions, undertaking early analysis will ensure that potential tax impacts are clear before initiating major transactions.

Practical steps to consider now:

• Review your investment and business assets to identify where unrealised gains may exist.
• Plan how you might determine an accurate valuation of impacted assets at 1 July 2027
• Check your cost base records are complete, including purchase contracts, stamp duty, legal fees, improvement costs and sale costs.
• Consider how any planned asset sales or family trust distributions may be affected.
• For privately owned business owners, review how the CGT changes could affect any future sale, succession plan or restructure. Early modelling can help you understand the likely tax outcome and which small business CGT concessions may be available.

Your RDL advisor can help you work through these changes and outline practical next steps before 1 July 2027 including reviewing your current structures, reconstructing share portfolio cost bases, estimating potential gains, considering timing options and evaluating your business and succession strategies.