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1 July 2027

Who may be affected by the 1 July 2027 CGT reform?

The reform is most obvious for people who own investment property, but the practical education need is wider than that.

A current home owner may not have an investment property today, but their CGT position can become more complicated if the property is later rented, partly used to earn income, transferred, inherited, sold after a change in use, or held through a trust or partnership.

This page explains who should pay attention and what questions to raise with a registered tax professional.

Attention map

High

Long-held investors

Large gains and older records can make evidence more important.

High

Future rental risk

Owner-occupiers who may later rent, transfer or subdivide should pay attention.

Med

Trusts and partnerships

Ownership structure can increase adviser review and record needs.

Watch

Recent buyers

Lower history, but keeping clean records still matters.

The simple answer
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Clearly relevant

Residential property investors, trusts and partnerships that hold property and expect future taxable capital gains.

Possibly relevant

Owner-occupiers who may later rent the property, use part of it for income, transfer it, subdivide it or change ownership structure.

Professional education need

Tax return accountants and real estate agents whose clients may ask whether property records should be prepared before 1 July 2027.

Check separately

SMSFs and companies may have different rules or valuation needs. Do not assume the same reform treatment applies.

Property investors
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Property investors are the core audience. If a residential property is already used to produce rental income, the 1 July 2027 value may become a key record for future CGT calculations under the reform design.

Investor questions to ask:

  • What property records should I keep before 1 July 2027?
  • Does the reform affect my ownership structure?
  • Should I document market value at the transition date?
  • How will improvements, holding costs and cost-base records be treated?
  • What should I ask my accountant before the deadline?

Home owners without investment property
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Many owner-occupiers assume CGT reform is only an investor issue. That may be true for some people, but it is not a safe assumption for everyone.

You may need to understand the reform if:

  • you may rent out your current home later;
  • you may move out and keep the property as an investment;
  • you use part of the property to earn income;
  • you plan to subdivide, transfer or restructure ownership;
  • you expect inheritance, estate, separation or family transfer issues;
  • your accountant asks for better historical property records.

The practical point is not that every home owner needs a valuation. The point is that many home owners will not know today whether their property will later have an investment or taxable-use period.

Tax return accountants
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Tax return accountants should prepare clear client education before the reform window becomes urgent.

Client-book review ideas:

  • segment clients who own residential property;
  • flag investment, former-home, mixed-use and trust/partnership ownership;
  • prepare client questions for the 2026 and 2027 tax seasons;
  • collect property acquisition, improvement and use-history records;
  • avoid promising a tax outcome before reviewing each client’s facts.

Real estate agents
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Real estate agents and property managers are often the first professionals to hear that a client may sell, rent out, transfer or restructure a property.

Agents should not provide tax advice, but they can help clients recognise when to ask their accountant:

  • landlord onboarding;
  • owner considering renting a former home;
  • investor preparing for sale;
  • property transfer or estate discussion;
  • client asking about CGT, land tax or record keeping.

What to do now
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  1. Identify how the property is owned.
  2. Record whether it is used as a home, investment, mixed-use property or through an entity.
  3. Collect acquisition, improvement, rental and use-history documents.
  4. Ask a registered tax professional how the reform may apply.
  5. Keep records organised before 1 July 2027.

Important
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This page is general education only. It is not tax, financial, legal or valuation advice. The right answer depends on your facts and professional advice.