Capital gains tax changes from 1 July 2027

• Until 30 June 2027: hold shares for at least 12 months and only half the gain is taxed.
• From 1 July 2027: instead of halving the gain, the cost base is increased by inflation, so only the real gain is taxed. A minimum tax then works as a top-up: tax on the real gain won't fall below 30%.
• New homes: individuals can keep the 50% discount for new residential dwellings and affordable housing, and the minimum tax doesn't apply to those.
• Shares you already own: the gain is split at 1 July 2027. The part before keeps the 50% discount. The part after follows the new rules.

Individuals, trusts and partnerships, on shares, ETFs, crypto and other investments. Companies never had the discount, so they are not affected. Assets bought before 20 September 1985 become taxable on growth after 1 July 2027.

Your home is still exempt, and complying super funds are excluded and keep the one-third discount. People on income support, including pensioners, don't pay the minimum tax.

Individuals can keep the 50% discount for new residential dwellings and affordable housing. The minimum tax doesn't apply to those.

Indexation raises your cost base by how much prices in general went up while you held the shares, measured by the consumer price index (CPI). If your shares only kept pace with inflation, there is no real gain and nothing to tax.

Indexation only applies to assets held for at least 12 months. It applies to individuals and trusts. Companies, super funds, and foreign and temporary residents are excluded.

This isn't new. Australia used indexation before the discount came in, in 1999.

You don't pay anything on 1 July 2027, and you don't have to sell. The law treats the shares as sold just before 1 July 2027 and bought back straight away, but the tax on the part before only falls due when you really sell.

The deemed sale is at market value just before 1 July 2027, or under an apportionment method that is still to be set (method to be determined). For shares listed on the ASX, the market value comes from their share price at that time.

Keep your purchase records. You still need the date and cost of every purchase to work out the part before 1 July 2027.

Made-up figures, ignoring brokerage, for someone who isn't on income support:

• You buy 100 shares for $4,000 in July 2020.
• Just before 1 July 2027 they are worth $6,000.
• You sell them for $7,000 in July 2029.

Before 1 July 2027: a gain of $2,000. You held them for more than 12 months, so half of it, $1,000, is taxed.

After 1 July 2027: a gain of $1,000 on the $6,000 value. If prices rose 3% a year over those two years, indexation raises the $6,000 to about $6,365, leaving a real gain of about $635. That $635 is taxed at your marginal rate, or at least 30% overall: if your marginal rate is lower, the minimum tax tops the tax on it up to 30%.

The 3% is only for the example. The real figure comes from the consumer price index over the time you held the shares.

Portfoli.au keeps the date and cost of every purchase and works out the gain on each sale for every financial year, with every step shown. Sales up to 30 June 2027 use the current rules.

For a single sale, try the free capital gains calculator. For all your sales across your platforms, start free.

• ATO, Reforming negative gearing and capital gains tax (updated 29 June 2026)
• Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (Act No. 49 of 2026)
• Treasurer, Tax reform for workers, businesses and future generations (12 May 2026)

Some details, such as how the apportionment method is worked out (method to be determined), are still being settled in ATO guidance. Check with a registered tax agent before you act.

• Capital gains tax on shares in Australia: When you pay tax on selling shares or ETFs, how the gain is worked out, and what to do with a loss.
• The 50% CGT discount and the 12-month rule: Who gets the discount, how to count the 12 months, and why losses come off first.
• Cost base of shares: brokerage and what to include: What goes into the cost of your shares, brokerage included, and which shares count as sold.
• Crypto tax in Australia: Which crypto transactions are taxed, staking rewards, airdrops and the 12-month discount.
• Tax-loss selling before 30 June, and wash sales: Selling at a loss before 30 June, what the loss is worth, and the buy-back the ATO refuses.
• How ETFs are taxed in Australia: Distributions, the annual tax statement, cost base changes, and selling units.
• How to track your share portfolio in Australia: The records to keep, a spreadsheet or a tracker, and the figures worth watching.
• All guides, and help with using Portfoli.au.
• Capital gains calculator: work out the gain on one sale, free.
• Dividend calculator: estimate dividend income with franking credits, free.