CGT · Tax · Urgent — updated May 2026
The CGT deadline you can't miss: what to do before 30 June 2027
Australia's 50% CGT discount ends on 1 July 2027. Here's who is affected, the difference it makes in dollars, and the decision framework for your holdings.
Important
What is changing and why
Since 1999, Australian investors who held an asset for more than 12 months could discount the taxable capital gain by 50%. This has been one of the most significant tax concessions for retail investors — meaning someone on a 37% marginal rate effectively pays just 18.5% CGT on long-held investments.
The 2026 Federal Budget announced that from 1 July 2027, this discount is replaced for assets acquired on or after 1 July 2025 with a new system: investors can choose between indexing their cost base to CPI (taxed on the real gain) or a flat 30% discount. The 50% discount is gone for new acquisitions.
Who is affected
Assets acquired before 1 July 2025
Grandfathered — old 50% discount applies when sold, regardless of sale date.
Assets acquired 1 Jul 2025 – 30 Jun 2027, sold before 1 Jul 2027
Old 50% discount applies. Selling before the deadline locks this in.
Assets acquired 1 Jul 2025 – 30 Jun 2027, sold after 1 Jul 2027
New rules apply: 30% discount or CPI indexation. The 50% discount is lost.
Assets acquired on or after 1 July 2027
Always under new rules: 30% discount or indexation only.
Worked example: $100,000 gain
An investor on a 37% marginal rate sells shares acquired in October 2025 with a capital gain of $100,000. Here's the difference in CGT between the two scenarios:
Sold before 1 July 2027 (old 50% discount)
Taxable gain
$50,000
CGT payable
$18,500
Effective rate
18.5% effective
Sold after 1 July 2027 (new 30% discount)
Taxable gain
$70,000
CGT payable
$25,900
Effective rate
25.9% effective
The difference is $7,400 in CGT on a $100,000 gain — for a 37% rate taxpayer. At the top 45% rate, the difference is $9,000 on the same gain.
Tip
The case for selling before the deadline
Selling before 30 June 2027 locks in the 50% discount on gains for assets acquired from 1 July 2025. The key reasons to consider this:
The case for staying invested
Selling to lock in a tax discount crystallises a tax liability today and interrupts compounding. The risks:
Note
What to do now
Review your acquisition dates
Identify which holdings were acquired on or after 1 July 2025. These are the ones exposed to the rule change.
Calculate your unrealised gains
For each affected holding, calculate the gain (current price minus cost base). Your broker's portfolio view or contract notes will have this.
Model the CGT under both scenarios
Use the CGT 2027 calculator to compare your tax bill if you sell before vs after 1 July 2027.
Consider your investment timeline
If you were planning to hold for 10+ years, the compounding cost of selling may exceed the tax saving. If you were planning to sell soon, bring it forward.
Check your capital losses
Existing capital losses offset capital gains dollar for dollar. Harvest any unrealised losses before the end of the financial year to reduce your CGT bill.
Frequently asked questions
What exactly changes on 1 July 2027?
The 50% CGT discount for assets held more than 12 months is replaced by a new system for assets acquired on or after 1 July 2025. Under the new rules, you can choose between: (1) indexing the cost base to CPI and paying tax on the real gain, or (2) a flat 30% discount on the nominal gain — whichever is more favourable. For assets acquired before 1 July 2025, the old 50% discount rules continue to apply regardless of when you sell.
I bought shares before 1 July 2025 — am I grandfathered?
Yes. Assets acquired before 1 July 2025 continue to use the current 50% discount rules when sold — even if you sell after 1 July 2027. The change only applies to assets acquired on or after 1 July 2025. However, if you sell those pre-2025 assets after 1 July 2027, you are still subject to the new rules for any post-2025 acquisitions in the same year.
Who does the 2027 change affect most?
The change most affects investors holding assets acquired between 1 July 2025 and 30 June 2027 with large unrealised gains. For these assets, selling before 30 June 2027 locks in the 50% discount; selling after applies the new rules. For assets acquired before July 2025, the grandfathering means the old discount applies forever.
Will the new rules always be worse than the old 50% discount?
Not always. Indexation (adjusting the cost base for CPI) can be more favourable than the 30% flat discount in high-inflation environments or for assets held for very long periods where inflation has eroded the real gain significantly. For most investors selling within 10–15 years, the 30% flat discount will be less generous than the old 50% discount.
Should I sell my ETFs before 30 June 2027?
Only if the tax saving from using the 50% discount justifies exiting a position you'd otherwise hold. The risk: you sell, pay CGT, and then re-buy at a higher price — crystallising a tax liability and potentially missing further growth. Model the after-tax numbers before deciding. The CGT 2027 calculator can estimate your liability under both scenarios.
What about assets inside superannuation?
Superannuation funds pay CGT at 10% for assets held more than 12 months (15% for shorter periods). The 2026 budget changes do not affect CGT inside super — the concessional 10% rate remains. This is one reason why holding growth assets inside super is tax-advantaged for long-term investors.