Calculator / Enacted law from 1 July 2027

Property CGT reform.

From 1 July 2027 the 50% CGT discount is replaced by cost-base indexation, with a 30% minimum tax on the real gain. A property you already hold gets split in two: the gain up to that date is deferred and keeps the discount, and the gain after it is indexed. This compares the former method with the enacted treatment.

Enacted law · Act No. 49, 2026 Basic income tax only Your figures stay in your browser

The sale

The reform calculation only starts once the contract date is on or after 1 July 2027. For an earlier sale, current CGT rules apply in full.

Contract date of sale Income year for rates No rates are legislated past 2027-28, so a later sale uses that scale unchanged. Gross capital proceeds Contract price before selling costs. Costs of sale Agent commission, marketing, legal. Reduces the gain under both methods. Other taxable income in the year of sale Excludes this gain and any other capital gain or loss.

What you paid

Purchase contract date Purchase price Incidental acquisition costs Stamp duty, conveyancing, inspections. Capital improvements before 1 July 2027 Capital works only. Not annual rental deductions.

The 1 July 2027 reset

The Act treats the property as sold just before 1 July 2027 and bought back at its market value that day. You can use a valuation or the prescribed apportionment method, and you do not have to decide until you lodge for the year you actually sell.

Market value immediately before 1 July 2027 Your entered assumption. A valuation or the prescribed apportionment method may be used under the legislation.

Indexation

Indexation lifts your post-2027 cost base by inflation, so you are taxed on the real gain. Future CPI is not knowable, so this calculator will not invent it — pick an assumption you are comfortable defending, or enter official index numbers if you have them.

Basis

Assumed inflation rate Official CPI index numbers

Assumed annual inflation Percent per year. 2.5% is the midpoint of the RBA's target band — an assumption, not a forecast.

Costs after 1 July 2027

Capital improvements and other indexable cost-base items incurred after the reset. Third-element ownership costs — rates, interest, insurance — are never indexed and belong in the separate field below.

Description Amount Date incurred

Non-indexable third-element ownership costs Only if confirmed eligible for the cost base and not already deducted.

Anything else true?

Tick anything that applies. Each one changes the statutory order the gain is worked out in, so the calculator will stop and say so rather than approximate.

It is a confirmed qualifying new residential dwelling — this keeps the 50% discount and shows both routes It is owned through a trust, partnership, company or SMSF I own less than 100% of it It has had any main-residence or mixed use I have other capital gains, or current or carried-forward capital losses A small-business CGT concession or the affordable-housing discount applies I am a foreign, temporary or part-year resident

Your estimate

This educational estimate uses the inputs and assumptions shown. It does not include every tax rule or personal circumstance. Confirm a consequential decision with a registered tax agent.

What this means if you are buying

New builds keep the discount.

A qualifying new residential dwelling keeps the 50% CGT discount and sits outside the 30% minimum tax entirely. You can still choose indexation if it works out better — but you cannot have both, and the choice is made at sale, not now.

What counts as "new" is not settled. It is delegated to a ministerial legislative instrument that has not been made. Treasury's exposure draft proposes a property acquired within 24 months of a certificate of occupancy being issued, so the direction is clear, but the detail can still move. Get eligibility confirmed in writing rather than inferred from a brochure.

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Where every figure comes from

Sources, and what is still being settled.

The reform is law. Some of the detail underneath it is not finished yet. Anything marked detail pending below can still change, so treat it as a planning assumption rather than a settled rule.

Enacted law Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (No. 49, 2026)
Assented 26 June 2026. Schedule 1 replaces the 50% CGT discount with cost-base indexation and adds a 30% minimum rate of tax on capital gains. Schedule 2 limits negative gearing for residential property to new builds.
Enacted law Second reading speech — Treasurer
Confirms the 50% discount applies to gains accruing up to 1 July 2027, indexation applies after, and a 30% minimum rate applies to real gains accruing from 1 July 2027.
Enacted law ATO — Tax reform: negative gearing and capital gains tax
The ATO's administrative guidance on both measures, including the transition and grandfathering rules.
Detail pending Treasury — CGT and negative gearing: Tranche 2 consultation
The detailed definition of a qualifying new residential dwelling, and several transition mechanics, are still being consulted on. Do not treat new-build eligibility as settled.
Enacted law ATO — Tax rates for Australian residents
The resident marginal rate scale used for every tax figure on this page.
Enacted law Legislated tax cuts to the $18,201–$45,000 bracket
The rate on the second bracket falls to 15% from 1 July 2026 and 14% from 1 July 2027.
Detail pending RBA — Inflation target
The 2–3% target band is the basis for the default inflation assumption. It is an assumption, not a forecast, and not a source of official CPI figures.

Tax configuration version 2026-08-13 · Rates and thresholds as legislated at that date

Common questions

What people ask about the changes.

When do Australia's property CGT changes apply?

The changes apply to CGT events happening on or after 1 July 2027. They were enacted by the Treasury Laws Amendment (Tax Reform No. 1) Act 2026, which received assent on 26 June 2026. If you sell before 1 July 2027, the current rules — including the 50% CGT discount — apply in full.

Does the 50% CGT discount apply after 1 July 2027?

Not to the gain that accrues after that date. For gains accruing from 1 July 2027 the 50% discount is replaced by cost-base indexation, so you are taxed on the real gain rather than half the nominal gain. Two exceptions keep the 50% discount: qualifying new residential dwellings and qualifying affordable housing. The discount also still applies to the portion of your gain that accrued before 1 July 2027.

How is a property owned before 1 July 2027 treated?

The property is treated as if you sold it just before 1 July 2027 and immediately bought it back at its market value on that day. The gain up to that point is deferred — you do not pay tax on it then — and it keeps the 50% discount when you actually sell. The gain after that point is worked out separately using cost-base indexation, and it is that later slice the 30% minimum tax applies to. You can also choose a prescribed apportionment method instead of a valuation, and you do not have to make that choice until you lodge the return for the year you actually sell.

Do new residential dwellings have a different CGT option?

Yes. A qualifying new residential dwelling keeps the 50% CGT discount by default, and the 30% minimum tax does not apply to that gain. You can choose cost-base indexation instead if it produces a better result, but you cannot use both. The detailed test for what counts as a new residential dwelling is set by a ministerial legislative instrument that has not been made yet — Treasury's exposure draft proposes a property acquired within 24 months of a certificate of occupancy being issued, but that is a draft, not law.

What is the 30% minimum tax on capital gains?

It is a floor, not a flat rate. If the ordinary tax attributable to your post-1 July 2027 real gain works out at less than 30% of that gain, a top-up brings it up to 30%. If your marginal rate already puts you above 30% on that slice, the top-up is zero and it changes nothing. It applies only to the gain accruing after 1 July 2027 — not to your deferred pre-reform gain, and not to a new residential dwelling or affordable housing gain.

Does this calculator include the Medicare levy or tax offsets?

No. It estimates basic income tax only. It excludes the Medicare levy and surcharge, the Working Australians tax offset, the standard work-related-expense deduction, low-income and other offsets, HELP debt repayments, PAYG credits and all state taxes including land tax and stamp duty. Because it reports the difference between two methods rather than a tax bill, those exclusions affect the comparison far less than they would affect a total.

This is an estimate, not advice.

These calculators are general information. They do not take your circumstances into account, they are not a tax return, and they are not a substitute for a registered tax agent. Before you act on a number here — buying, selling, or restructuring — get it checked by someone who can see your whole position.

What stays on your device

Every calculation runs in your browser. Your figures are never sent anywhere automatically — close the tab and they are gone. The only exception is if you fill in the enquiry form and tick the box asking us to include them, which sends exactly the text the "Copy calculation" button shows you.