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1 July 2027

257 days until 1 July 2027

The 1 July 2027 CGT change, explained simply

See the 5 common mistakes
Dramatic Australian property and civic skyline for 1 July 2027 CGT deadline awareness

The change in one paragraph
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From 1 July 2027, the 50% CGT discount stops applying to gains made after that date by individuals and trusts. Those later gains get CPI indexation of the cost base instead, and an Australian-resident individual pays at least 30% tax on them. Gains made up to 30 June 2027 keep the 50% discount, whenever you sell. To separate the two periods, an asset you hold on 30 June 2027 is treated as sold and bought back at its market value that day (the cost base reset). Your home generally stays exempt. Super funds, including SMSFs, keep their existing CGT rules, except on assets bought before 20 September 1985. Source: Treasury Laws Amendment (Tax Reform No. 1) Act 2026, Act No. 49 of 2026. General information, not tax advice.

Much of what is going around about it is wrong. Start with the five most common mistakes, then see what it means for you.

The 5 things people most often get wrong

We ranked these by how often they appear in forums, news coverage, accountants’ “myths” posts and the searches that bring people to this site.

Myth 1

"Sell before 1 July 2027, or you lose the 50% discount."

Actually: the growth up to 30 June 2027 keeps the 50% discount whenever you sell. It is locked in by the reset, not lost. Treasury says the change gives no reason to sell early. And if you sell a rental and buy another established home, the new one does not inherit the old one's grandfathered negative gearing.

When the 50% discount really ends →

Myth 2

"Negative gearing ends in 2026."

Actually: the limit starts in the 2027–28 income year, and only for established homes bought after 7:30pm (ACT time) on 12 May 2026. A home you owned or had contracted before then can still be negatively geared for as long as you keep it. New builds are not affected, and a loss that cannot be deducted is carried forward, not lost.

What the negative gearing change covers →

Myth 3

"I must get a valuation by 30 June 2027."

Actually: a valuation is not compulsory, and there is no lodgement deadline on 30 June 2027. You choose between the market value at that date and Treasury's apportioning formula when you lodge the return for the year you sell. The formula is still only a draft. A valuation can be prepared later, as at 30 June 2027, but the evidence is easiest to gather close to the date.

What the 30 June 2027 date really means →

Myth 4

"Capital gains tax becomes a flat 30%."

Actually: 30% is a minimum, not a flat rate. It applies to Australian-resident individuals, and only to gains made after 1 July 2027. If your usual tax rate is higher, you pay that. It does not apply in a year you receive a payment such as the Age Pension.

How the 30% minimum works →

Myth 5

"Pre-1985 property will be taxed on 40 years of growth."

Actually: growth up to 30 June 2027 stays tax-free for assets bought before 20 September 1985. Their value on that date becomes the cost base, and only growth after it is taxed. That makes the 30 June 2027 value the most important number these owners will ever record.

Pre-1985 property and the reset →

What it means for you
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I live in my home

Your main residence generally stays exempt. It matters if you later rent it out, run a business from it, or it passes to someone else.

I own an investment property

This is who the change mostly affects. See whether your ownership structure is caught, and what to keep before 30 June 2027.

My property is in an SMSF

Super funds keep their existing CGT settings, except on assets bought before 20 September 1985, which get the reset too.

I have property from before 1985

The exemption ends for later growth, so the 30 June 2027 value becomes your cost base.

Get the details as they are settled

Several parts are still being decided: the final apportioning formula, the ATO’s tools, and how inheritance and divorce are treated. We send a short email when something changes, and nothing else.

Decided you want a valuation? This site only explains the change. Our valuation service, Valuation Ready, prepares CGT valuations as at 30 June 2027. See what each level costs →

Want the full detail? Browse every topic or read all common questions.

An accountant or tax agent? Our partner programme handles valuations across a client book, at partner rates. See how it works →

Other common questions
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Who is affected by the 1 July 2027 CGT change?
Mainly owners of residential investment or income-producing property held as individuals, trusts or partnerships. Owner-occupiers can be affected later if the property is rented, transferred, inherited or changes use. General information, not tax advice.
What does the cost-base "reset" mean?
For Australian-resident individuals and trusts, and for any pre-CGT asset, property held on 30 June 2027 is treated as sold just before 1 July 2027 — at its market value at the end of 30 June 2027, or at the amount the Treasurer’s apportioning method gives if you choose it — and reacquired on 1 July 2027 for that amount, which becomes the new cost base for gains after that date. Gains up to then keep the old rules.
When is the valuation delivered?
The reset value (market value at the end of 30 June 2027) can only be finalised once the date has passed, so valuation providers generally deliver signed reports from around July 2027. Some services allow earlier reservation — check timing with the provider you choose.
Does the 1 July 2027 CGT change affect my family home?
An owner-occupied main residence generally keeps its exemption. The change matters if the home is later rented, used to produce income, transferred or inherited - the property can then face CGT with the reset value (market value at the end of 30 June 2027) as a key valuation point. Check your position with a registered tax professional and see who is affected.
Is the change only about property, or other assets too?
The discount-to-indexation change applies to CGT assets held by individuals, trusts and partnerships generally — property is where most people feel it, and it is this site’s focus. The negative-gearing change is specifically about residential property. For shares and other assets, ask a registered tax professional.

All common questions →

Important
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This site provides general education only. It is not tax, financial, legal or valuation advice. Whether the reform affects you depends on your ownership structure, use of the property, future plans and personal tax position.

Speak with a registered tax professional before acting.