03 Aug 2026

SHOULD YOU SELL BEFORE 1 JULY 2027?

From 1 July 2027, the way capital gains are taxed for
individuals, trusts and partnerships is set to change.
The 50% CGT discount will be replaced by cost base
indexation and a new 30% minimum tax on real
gains.
Many people assume they must sell before the
deadline to keep the discount, but this is not the case.

Your gains so far are protected
The new legislation treats assets you hold on 30 June 2027 as sold at
market value on that date and bought back the next day. You do not
pay any tax then. Instead, the gain built up to 1 July 2027 is locked in
and keeps the 50% discount whenever you actually sell. Only the
growth after that date falls under the new indexation and minimum
tax rules.
In short, holding past the deadline does not cost you the discount you
have already earned. This is why a number of advisers describe
rushing to sell purely to beat the deadline as one of the more
expensive mistakes investors make during tax reform.

Reasons to be cautious
Some assets are not affected at all. New builds can still choose the
discount, and qualifying affordable housing keeps its existing discount
of up to 60%. The small business CGT concessions remain. Income
support recipients are exempt from the 30% minimum tax.
Also note that super is unaffected, meaning super funds continue to
receive the one-third CGT discount on capital gains.

The bottom line
For most people, there is no need to sell simply because the rules are
changing. The gain you have made up to 1 July 2027 stays on the old
rules. The decision to sell should rest on your own plans, your asset,
your income and your timeframe, not on the calendar.
This article is general information only. It does not take account of your
objectives, financial situation or needs, and it is not personal financial
or taxation advice.