Reviewed 24 October 2026.
- 30 June 2027
- The last day before the CGT changes start: assets held then are generally treated as sold just before 1 July 2027 and bought back. Valuation Day is our name for the date, not an official one.
- 30% minimum tax on capital gains
- A minimum 30% tax on certain capital gains of Australian resident individuals, on the part of a gain that builds up from 1 July 2027 (Division 119). Companies, gains on new residential dwellings and affordable housing, and people receiving certain government payments are outside it.
- 50% active asset reduction
- One of the four small business CGT concessions, which halves a capital gain on an active asset when the basic conditions are met. From the income year that includes 1 July 2027 it uses a $10 million aggregated turnover test instead of $2 million.
- 50% CGT discount
- The discount that halves an eligible capital gain of an individual or trust on an asset held for at least 12 months. From 1 July 2027 it no longer applies to the part of a gain that builds up from that date, but the part up to 30 June 2027 can keep it.
- Affordable housing (CGT)
- A dwelling used to provide affordable housing, as the tax law defines it, for at least 1,095 days (three years) on or after 1 January 2018. Gains on it keep a discount of at least 50% after 1 July 2027 (s 115-125).
- Apportioning method
- A method the Minister may make by legislative instrument as an alternative to market value for the deemed sale (s 112-185); the ATO calls it the apportionment method. It had not been made at 24 October 2026.
- Arm’s length
- Dealing between parties who each act in their own interests, with no relationship that could push the price up or down. Market value assumes a sale at arm’s length.
- Beneficiary
- A person or entity who can receive income or capital from a trust. For the deemed sale of a trust’s assets, one of the conditions is about the trust’s beneficiaries and the CGT discount.
- Bill
- A proposed law before Parliament. It becomes an Act, and law, only after both Houses pass it and it receives Royal Assent.
- Business valuer
- A professional who values businesses, shares and trust units. The ATO’s guide notes there is no formal admissions board in Australia for business valuers.
- Capital gain
- The amount by which what you receive for an asset (the capital proceeds) is more than its cost base. Selling an asset for more than it cost generally makes a capital gain.
- Capital gains tax (CGT)
- The part of income tax that applies to capital gains, such as the gain on selling an investment property, a business or shares. Your net capital gain for the year is included in your assessable income (s 102-5).
- Capital loss
- The amount by which what you receive for an asset is less than its reduced cost base. A loss from the deemed sale on 30 June 2027 is deferred, just like a gain.
- Capital proceeds
- What you receive, or are treated as receiving, from a CGT event, such as the sale price. For the deemed sale, they are the market value just before 1 July 2027, unless the apportioning method is chosen.
- CGT asset
- Any kind of property, or a legal or equitable right that is not property (s 108-5). Examples include land and buildings, shares in a company, units in a unit trust and goodwill.
- CGT event
- An event that can give rise to a capital gain or loss, such as selling an asset (CGT event A1). For a sale under a contract, the event generally happens when the contract is made, not at settlement.
- Consumer price index (CPI)
- The measure of inflation that cost base indexation uses. The ATO says indexation adjusts an asset’s purchase price for inflation using the CPI before the gain is worked out.
- Cost base
- The figure a capital gain is measured from: broadly what an asset cost you, plus certain other costs, in five elements (s 110-25). For an asset held on 30 June 2027, its value then becomes the starting cost base for the part of the gain from 1 July 2027.
- Deemed sale
- A sale the law treats as happening even though nothing changes hands. Assets held on 30 June 2027 are generally treated as sold just before 1 July 2027 and bought back for the same amount (ss 112-155, 112-165 and 112-175).
- Deferred gain
- The gain or loss from the deemed sale on 30 June 2027, which is put off until the income year in which the asset is later sold or another CGT event happens. No tax is payable on the day itself.
- Desktop valuation
- A valuation prepared from records and market evidence without an inspection. Whether one suits a particular asset and purpose is for the valuer and your accountant to consider.
- Discount capital gain
- A capital gain that can be reduced by the CGT discount: generally one made by an individual, trust or complying super fund on an asset held for at least 12 months, without indexation (ss 115-5 to 115-25).
- Family trust
- Usually a discretionary trust set up for a family, where the trustee decides which beneficiaries receive income or capital. If it holds an asset on 30 June 2027, the trust deemed sale generally applies, subject to its conditions.
- Indexation
- Increasing the cost base for inflation, which reduces the taxable gain. From 1 July 2027 it applies to gains of individuals and trusts on assets held for at least 12 months, and for an asset held on 30 June 2027 it runs from 1 July 2027.
- Legislative instrument
- A law made under the authority of an Act, such as a determination by a Minister, and published on the Federal Register of Legislation. The apportioning method would be made this way.
- Main residence exemption
- The rule that generally exempts the gain on a home that has been your main residence for the whole time you have owned it (s 118-110). The ATO says it is not changing.
- Market value
- Broadly, the price a willing but not anxious buyer and seller, both fully informed and dealing at arm’s length, would agree on at a given date. The ATO describes it as an asset’s estimated monetary worth on the open market at a particular time, based on its most valuable use.
- New residential dwelling
- A dwelling that meets the requirements the Minister sets by legislative instrument (s 26-160); gains on one keep a 50% discount after 1 July 2027. No such instrument was on the Federal Register at 24 October 2026, and a Bill would put the definition in the Act.
- Planning valuation
- The name used in the CGT 2027 Valuation Package for a valuation at a current date, to plan around before 30 June 2027. It is not a 30 June 2027 valuation, which is prepared after that date.
- Pre-CGT asset
- An asset last acquired before 20 September 1985, whose capital gains have generally been disregarded. If still held, it has its own deemed sale just before 1 July 2027 at market value, so gains from then are taxed.
- Property valuer
- A professional who values land and buildings. Through Valuation Day, each property is valued and signed by a property valuer, never Oliver Group.
- Realisation event
- For a CGT asset, any CGT event other than CGT events E4, E10 and G1 (s 977-5), such as a sale. The gain or loss from the deemed sale is brought to account in the year a realisation event happens.
- Retrospective valuation
- A valuation as at a past date, prepared later. It reflects the market at that date, using information known or reasonably foreseeable then, and a valuation as at 30 June 2027 is one of these.
- Royal Assent
- The Governor-General’s assent to a Bill passed by both Houses of Parliament, which makes it an Act. The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 received Royal Assent on 26 June 2026.
- Small business CGT concessions
- Four concessions in Division 152 that can reduce or disregard a small business’s capital gain: the 15-year exemption, the 50% active asset reduction, the retirement exemption and the roll-over. They remain after 1 July 2027.
- State valuer laws
- Some states have laws on who may value land: Queensland requires valuers to be registered, Western Australia requires land valuers to be licensed, and South Australia and Tasmania set qualification rules. New South Wales ended its registration scheme on 1 March 2016.
- Trustee
- The person or company that holds and manages a trust’s assets. A company acting as trustee is treated as a different entity from the same company acting for itself (s 960-100).
- Unit trust
- A trust whose interests are divided into units held by unitholders. Units are CGT assets, so units held by an individual or trust on 30 June 2027 are generally covered by the deemed sale.
- Valuation date
- The date a valuation states the value at. For the deemed sale it is just before 1 July 2027, that is, the end of 30 June 2027.
