Australian Federal Budget Update Capital gains tax #tax

Definitely the most talked about reform that was proposed from last night’s federal budget is the change to the capital gains tax rules. At the moment we operate under the 50% CGT discount which applies to assets that we hold for more than 12 months. Moving forward and from the 1st of July 2027 they’re going to go back to an old method that was used pre-1999 which is the inflation-based indexation method.

So we will be indexing the cost base up of the asset that we’ve purchased in line with inflation and then the gain on top of that will be taxed at marginal tax rates with a minimum 30% tax to be applied. So this is really going to stop people that are targeting which years to sell down assets when their income tax might be lower because that 30% blanket rule will apply anyway. It does also apply to all assets that current CGT rules apply to, so property, shares, any asset that can have a taxable gain.

Amy Lehmann is an Authorised Representative (No. 1292710) of Consortium Private Wealth Pty Ltd (AFS Licence 495401).

#FederalBudget2026 #capitalgainstax #CGTReform #investingaustralia #wealthbuilding