Capital Gains Tax Changes for Property Investors

The 2026-27 Federal Budget announced capital gains tax changes that matter for Australian property investors, but they are not current calculator logic on this site. The Budget page says the CGT changes are announced to start from 1 July 2027, and that the reforms will only apply to gains arising after 1 July 2027. (Budget 2026-27 - Tax reform)

This guide separates three things: what the Budget announced, what has not changed in the current-law calculators, and which sale-planning questions property investors should take to a registered tax agent.

Quick answer

The announced CGT change would replace the current 50% CGT discount with an inflation-based discount and a minimum 30% tax on gains from 1 July 2027. The Budget page also says investors in new builds will be able to choose the 50% CGT discount or the new arrangements. (Budget 2026-27 - Tax reform)

Property Tax Tools has not added a 2027 CGT mode. Use the capital gains tax calculator for current-law 2025-26 estimates only. If you are modelling a sale after 1 July 2027, keep the Budget-sensitive assumptions separate until enacted rules and transition details are ready to model.

What the Budget announced for CGT

That last column is important. A content page can explain the announcement, but a tax calculator needs enacted rules before it should branch into future-law modelling.

What has not changed yet

The current CGT calculator still estimates the sale-year tax effect under the settings built into the site. It does not model:

• an inflation-based discount;
• a minimum 30% tax on gains;
• a new-build CGT election;
• transition apportionment for gains arising before and after 1 July 2027;
• future legislation that has not been implemented in the calculator.

Under current CGT settings, capital gains are generally included in assessable income and taxed through the income tax system rather than through a separate CGT rate. Australian resident individuals who satisfy the holding-period requirement may be eligible for the 50% discount. (ATO — Capital gains tax overview)(ATO — CGT discount)

How property investors should use the current calculator

Use the calculator for the part it can still do well: current-law scenario work.

The property investment spreadsheet can help you keep sale, holding-cost, negative-gearing, depreciation, and land-tax assumptions in one place. Treat it as a current-law model unless the product page explicitly says a future Budget mode has shipped.

Sale-planning questions raised by the Budget

The Budget announcement creates practical questions, but those questions should not be answered by guessing inside a calculator.

For property investors, the adviser checklist is:

1. What is the likely sale contract date?
2. What is the expected ownership period before and after 1 July 2027?
3. Does the property qualify as a new build under the enacted wording?
4. How will any future gain be identified or apportioned?
5. Is the asset held by an individual, trust, company, SMSF, or another entity?
6. Are there capital losses, main-residence periods, or foreign-residency periods to consider?
7. Would waiting create higher holding costs, lower price certainty, or finance risk?

The current calculator can help with the numbers, but not the legal conclusion. Use it to organise a current-law estimate before asking a registered tax agent about Budget-sensitive timing.

Should you sell before the announced start date?

There is no universal answer. A lower tax outcome is only one part of a sale decision, and it can be outweighed by market movement, rental cash flow, finance pressure, repairs, vacancy risk, or personal circumstances.

A better way to frame the question is:

• What is the current-law CGT estimate if you sell in the next available sale window?
• What after-tax proceeds would you need for selling to make sense?
• What does the property cost to hold each week after tax?
• What future sale price would compensate you for that holding cost?
• Which Budget assumptions are still unresolved until enacted law is available?

Run the current-law CGT estimate, then compare holding costs with the negative gearing calculator or the property investment spreadsheet. Keep future Budget assumptions clearly labelled so they are not confused with current calculator output.

Where this fits in the Budget content cluster

Use the Budget 2026 CGT and negative gearing explainer for the official-source summary across both tax topics.

Use this page when your main question is CGT: discount changes, the announced 1 July 2027 start date, new-build choice language, and how to keep current-law estimates separate from future-law planning.

Use the capital gains tax guide for the current CGT mechanics: cost base, holding period, the current 50% discount, main residence rules, capital losses, and worked examples.