Australia’s capital gains tax rules for property investors are undergoing one of the biggest changes in over two decades. From 1 July 2027, the long-standing 50% CGT discount will be replaced by an inflation-indexed cost base, with a 30% minimum tax rate applying to real gains accruing from that date.

So what does this mean for your tax bill? It depends on when you buy. If you own a property before 1 July 2027, the current discount can still apply to gains accrued up to that date, while later gains fall under the new rules. In high-inflation periods, indexation may even match or beat the old discount, but with low inflation and strong growth, some investors could pay more tax. Eligible new builds can keep the 50% discount, and main residences remain exempt. Before the changeover, it pays to review your 50% CGT discount changes, check your contract dates, and plan a valuation as at 1 July 2027.

Every investor’s situation is different, and this is general information only, not personal tax advice. Book a call now with our mortgage brokers and tax accountants to see how the new rules apply to your portfolio and loan structure.