From 1 July 2027, the 50% CGT discount is proposed to be replaced by CPI cost base indexation for assets held for more than 12 months, with a 30% minimum tax on net capital gains. 

These changes apply to all CGT assets (including pre-CGT assets, properties, shares and goodwill) held by individuals, partnerships and trusts for at least 12 months.

There will be an exemption for investors who buy eligible ‘new build’ residential properties, under which they will have the choice of either using the 50% CGT discount, or indexation and the 30% minimum tax when the property is sold. 

Importantly, assets sold prior to 1 July 2027 will continue to be subject to the existing rules. 

The following table outlines how the new rules (including the transitional rules) will broadly apply, based on the Federal Budget announcement.

Please contact us directly if you need any help with this.

(Source: Information extract from The NTAA Express)