Last reviewed: 31 August 2026. This page tracks official guidance as it lands, in plain English. General information only — not tax advice.
The reform is law, but not every practical detail is published yet. This page separates what is settled from what is still being developed, so you know what you can rely on today and what to watch for.
Settled — you can rely on this now#
| Item | Status |
|---|---|
| The reform is law | Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (Act No. 49 of 2026), royal assent 26 June 2026 |
| What changes | 50% CGT discount (individuals, trusts, partnerships) replaced by CPI indexation from 1 July 2027, plus a 30% minimum tax rate on net capital gains that reaches Australian-resident individuals (new Division 119) — a trust or partnership gain meets the floor once attributed to an individual — for most gains. Concessional treatment is retained for new residential dwellings (50%, s 115-102) and affordable housing (up to 60%, s 115-125) |
| The reset mechanism | 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 — and reacquired on 1 July 2027 for that amount, which becomes the new cost base |
| The baseline is a choice | You may obtain a market valuation as at the end of 30 June 2027, or use the apportioning method the Treasurer sets by legislative instrument (a formula estimating the 1 July 2027 value by assuming one steady growth rate across your whole ownership period) |
| The apportioning method is published in draft | Treasury has released the Income Tax Assessment (Method for Apportioning Capital Gains and Capital Losses) Determination 2026 as an exposure draft — consultation ran to 21 August 2026. It is not yet final and may change before it is made |
| Negative gearing | Limited to new builds for residential property; holdings at the announcement are exempt — see negative gearing changes |
| Outside the new regime | Companies and super funds (including SMSFs) sit outside the new individual/trust settings for property acquired on or after 20 September 1985. Pre-CGT property is deemed sold whoever holds it (s 112-175, written by asset type rather than owner). Foreign and temporary residents are a different case: they are excluded from the deemed sale (s 112-155(1)(d)) so get no cost-base reset, and are denied the replacement indexation (s 114-25) — missing the relief, not escaping the tax |
Primary sources: the ATO’s new-legislation page for the reform and the Act on the Federal Register of Legislation. The ATO’s general market-valuation guidance (objective, supportable evidence) also already exists.
In development — watch this space#
| Item | Why it matters |
|---|---|
| ATO apportionment tools | Treasury says the ATO will provide tools for the formula alternative. Not yet released — the draft method can be worked through by hand in the meantime, but the instrument is not final, so any figure can still move. |
| Evidentiary standards for the 1 July 2027 value | How the ATO will treat desktop reports, agent appraisals and automated estimates vs valuer-signed reports for the reset specifically. Today’s general guidance points to objective, supportable evidence from a qualified, independent source. |
| Transitional edge cases | Part-year use changes, pre-1985 property specifics, deceased estates around the reset date and similar scenarios await detailed guidance. |
| Indexation mechanics | Exactly how CPI indexation and the minimum rate interact with marginal rates in assessments — the scenario scaffold awaiting these numbers is on the new CGT calculation. |
What to do while guidance develops#
- Don’t wait to organise records. Cost-base records and property condition evidence get harder to reconstruct later — see CGT Cost Base for what counts.
- Understand your fork in the road — free formula vs professional valuation — before demand peaks: see the comparison on our homepage FAQ and valuation pathways.
- Ask your registered tax professional which approach suits your property and position; this page is education, not advice.
Get notified when guidance lands#
We track ATO releases on the reform and summarise them in plain English (and in Chinese). Subscribe to the education newsletter to get updates as they happen — no spam, unsubscribe anytime.
Common questions#
Has the ATO released the apportionment tools yet?
Not as at our last review (10 July 2026). Treasury’s material commits the ATO to providing tools for the formula approach; we will update this page and the newsletter when they land.
Can I rely on the ATO's general valuation guidance in the meantime?
The ATO’s long-standing market-valuation guidance — objective, supportable evidence, clear methodology, a qualified and independent valuer — is the best current indicator of what strong evidence looks like. Reset-specific standards may add detail; a conservative approach is to meet the existing bar.
When will remaining guidance be published?
No published timetable as at our last review. Major reforms typically see guidance arrive in waves before commencement — another reason the 12 months before 1 July 2027 will be busy.