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From 1 July 2027, the 50% CGT discount for individuals and trusts no longer applies to the part of a gain that builds up from that date, which uses cost base indexation instead.

The Act now gives the 50% rate only for CGT events before 1 July 2027, apart from new residential dwellings and affordable housing, and the deemed sale on 30 June 2027 lets the part of a gain up to then keep it. The ATO describes the change as covering resident individuals, trusts and partnerships.

Income Tax Assessment Act 1997, compilation No. 268 (1 October 2026), s 115-100(a), (aa) and (ab); ATO, Capital gains tax reform (published 13 October 2026, QC 108170). Reviewed 24 October 2026. Fact discount-replaced.

For CGT events from 1 July 2027, the cost base of an asset an individual or trust has held for at least 12 months includes indexation.

Indexation lifts the cost base for inflation using the consumer price index, which reduces the taxable gain, and for an asset held on 30 June 2027 it runs only from 1 July 2027. Different rules apply to foreign and temporary residents.

Income Tax Assessment Act 1997, compilation No. 268 (1 October 2026), s 110-36(1A) and note 4, s 114-10, s 114-25; ATO, Capital gains tax reform (published 13 October 2026, QC 108170). Reviewed 24 October 2026. Fact indexation.

From 1 July 2027, a minimum 30% tax applies to certain capital gains of Australian resident individuals, on the part of a gain that builds up from that date.

It applies to individuals, including gains that reach them through a trust, but not to companies. Gains on new residential dwellings and affordable housing are left out, as are people who receive certain payments, such as the age pension, during the year.

Income Tax Assessment Act 1997, compilation No. 268 (1 October 2026), Division 119 (ss 119-1, 119-5, 119-10, 119-15); ATO, Capital gains tax reform (published 13 October 2026, QC 108170). Reviewed 24 October 2026. Fact minimum-tax.

Gains on new residential dwellings that meet the law’s tests, and on dwellings used for affordable housing, keep a discount of at least 50% after 1 July 2027.

For a new residential dwelling, an individual (including through a trust or partnership) can choose indexation instead. These assets sit outside the main deemed sale, and these gains sit outside the 30% minimum tax.

Income Tax Assessment Act 1997, compilation No. 268 (1 October 2026), s 115-1, s 115-102, s 115-125, s 112-155(1)(e), s 112-165(1)(e), s 119-5(2); ATO, Capital gains tax reform (published 13 October 2026, QC 108170). Reviewed 24 October 2026. Fact new-dwellings-discount.

Under current law, the tests for a new residential dwelling are requirements the Minister sets by legislative instrument, and no such instrument was on the Federal Register of Legislation at 24 October 2026.

Schedule 5 of a Bill introduced on 14 October 2026 would write the definition into the Act instead, including that an occupancy certificate was first issued at or after 7.30 pm (AEST) on 12 May 2026. The Bill is not law.

Income Tax Assessment Act 1997, compilation No. 268 (1 October 2026), s 26-160(3) and (4); Federal Register of Legislation, search for "new residential dwelling" on 24 October 2026 (Acts and older regulations only; no instrument under section 26-160); Parliamentary Library, Bills Digest No. 24, 2026-27, Treasury Laws Amendment (Tax Reform No. 3) Bill 2026 and related Bill (22 October 2026). Reviewed 24 October 2026. Fact new-dwelling-definition.

An Australian resident individual who holds a CGT asset on 30 June 2027 is treated as selling it just before 1 July 2027 and buying it back straight away for the same amount.

Nothing is actually sold: the rule splits a later gain into the part up to 30 June 2027 and the part from 1 July 2027. It is worked out when the asset is later sold or another CGT event happens.

Income Tax Assessment Act 1997, compilation No. 268 (1 October 2026), s 112-155; ATO, Capital gains tax reform (published 13 October 2026, QC 108170). Reviewed 24 October 2026. Fact deemed-sale-individuals.

A trust that holds a CGT asset on 30 June 2027 is generally treated the same way, with the trustee taken to sell it just before 1 July 2027 and buy it back.

This can include family (discretionary) trusts and unit trusts. Conditions apply, including one about the trust’s beneficiaries and the CGT discount (s 112-165(1)(d)).

Income Tax Assessment Act 1997, compilation No. 268 (1 October 2026), s 112-165; ATO, Capital gains tax reform (published 13 October 2026, QC 108170). Reviewed 24 October 2026. Fact deemed-sale-trusts.

The deemed sale covers an asset acquired before 1 July 2027 and still held until it is sold, or another CGT event happens, on or after that date.

Assets bought and sold before 1 July 2027 are not affected, and assets bought from 1 July 2027 fall wholly under the new rules. For a sale under a contract, the CGT event generally happens when the contract is made, not at settlement.

Income Tax Assessment Act 1997, compilation No. 268 (1 October 2026), s 112-155(1)(b) and (c), s 112-165(1)(b) and (c), s 104-10(3); ATO, Capital gains tax reform (published 13 October 2026, QC 108170). Reviewed 24 October 2026. Fact still-held.

The main deemed sale leaves out pre-CGT assets (which have their own deemed sale), new residential dwellings that meet the law’s tests, affordable housing, and assets to which the foreign or temporary resident discount rules apply.

A company’s own assets are also outside it, because it is written for individuals and trusts. A Bill introduced on 14 October 2026 would extend it to some people who were Australian residents for only part of the time they owned an asset, but the Bill is not law.

Income Tax Assessment Act 1997, compilation No. 268 (1 October 2026), s 112-155(1)(a), (d) and (e), s 112-165(1)(a), (d) and (e); Parliamentary Library, Bills Digest No. 24, 2026-27, Treasury Laws Amendment (Tax Reform No. 3) Bill 2026 and related Bill (22 October 2026). Reviewed 24 October 2026. Fact deemed-sale-exclusions.

An asset acquired before 20 September 1985 (a pre-CGT asset) and still held has its own deemed sale: it is treated as sold just before 1 July 2027 and bought back, at market value unless the apportioning method is chosen.

The gain up to then stays exempt and the asset stops being a pre-CGT asset, with its 30 June 2027 value as the new cost base, so gains from 1 July 2027 are taxed. This rule is not limited to individuals and trusts, so it can apply to companies too.

Income Tax Assessment Act 1997, compilation No. 268 (1 October 2026), s 112-175, s 104-10(5), s 149-10 (note 2), s 4-5; ATO, Capital gains tax reform (published 13 October 2026, QC 108170). Reviewed 24 October 2026. Fact pre-1985-assets.

The amount used for the deemed sale is the asset’s market value just before 1 July 2027, that is, at the end of 30 June 2027, unless the owner chooses an apportioning method.

That one figure is both the sale price for the part of the gain up to 30 June 2027 and the starting cost base for the part from 1 July 2027.

Income Tax Assessment Act 1997, compilation No. 268 (1 October 2026), s 112-155(2) and (3) and note 1, s 112-160(1) (note), s 112-165(2) and (3); ATO, CGT reform: guidance and market valuations, tax professionals newsroom (published 19 October 2026, QC 108200). Reviewed 24 October 2026. Fact market-value-just-before.

The ATO says that, for most CGT assets including real estate, the market value just before 1 July 2027 will need to be established when the asset is later sold or another CGT event happens.

The law also lets the owner choose an apportioning method instead, once the Minister makes one, and none had been made at 24 October 2026.

ATO, Capital gains tax reform (published 13 October 2026, QC 108170); Income Tax Assessment Act 1997, compilation No. 268 (1 October 2026), s 112-155(3), s 112-185; Federal Register of Legislation, search for "apportioning capital gains" on 24 October 2026 (only the Act and the amending Act; no instrument). Reviewed 24 October 2026. Fact ato-market-value-at-sale.

When the asset is later sold, the part of the gain up to 30 June 2027 can still get the 50% discount, and the part from 1 July 2027 is generally worked out with indexation.

Both parts go into the tax return for the year of the later sale. The earlier part still has to meet the usual discount rules, tested as at the date of that sale.

Income Tax Assessment Act 1997, compilation No. 268 (1 October 2026), s 112-160(3) and note 3, s 112-170(3) and note 3; ATO, Capital gains tax reform (published 13 October 2026, QC 108170). Reviewed 24 October 2026. Fact gain-split.

An asset bought less than 12 months before 1 July 2027 can still get the discount on the part of the gain up to 30 June 2027, if it has been held for at least 12 months when it is sold.

The law tests the 12-month rule for that earlier part as if the deemed sale happened on the day of the later sale. The ATO’s guidance says the same.

Income Tax Assessment Act 1997, compilation No. 268 (1 October 2026), s 112-160(3)(c) and note 2, s 112-170(3)(c); ATO, Capital gains tax reform (published 13 October 2026, QC 108170). Reviewed 24 October 2026. Fact twelve-month-rule.

No tax is payable on 30 June 2027 because of the deemed sale: any gain or loss from it is deferred to the income year in which the asset is later sold or another CGT event happens.

The ATO says the deferred gain or loss only has to be reported then, and nothing about it goes in a 2026-27 or 2027-28 return unless the asset is sold, or another CGT event happens, in one of those years.

Income Tax Assessment Act 1997, compilation No. 268 (1 October 2026), s 112-160(2) to (4), s 112-170(2) to (4); ATO, Capital gains tax reform (published 13 October 2026, QC 108170); ATO, CGT reform: guidance and market valuations, tax professionals newsroom (published 19 October 2026, QC 108200). Reviewed 24 October 2026. Fact no-tax-on-the-day.

The ATO says that, generally, you don’t need to know the market value just before 1 July 2027 to complete your 2026-27 tax return.

For most individuals and trustees, the earliest return that could include the deferred gain is the 2027-28 return, lodged from 1 July 2028, and only if the asset is sold or another CGT event happens that year.

ATO, Capital gains tax reform (published 13 October 2026, QC 108170). Reviewed 24 October 2026. Fact earliest-return.

The choice between market value and an apportioning method is made by the day you lodge your tax return for the income year of the later sale or other CGT event, or later if the ATO allows.

There is no choice to make on 30 June 2027 itself. The way the return is prepared is enough evidence of the choice.

Income Tax Assessment Act 1997, compilation No. 268 (1 October 2026), s 112-155(4) and note 2, s 112-165(4), s 112-175(4), s 103-25(1) and (2). Reviewed 24 October 2026. Fact choice-timing.

Instead of market value, the law lets an owner choose an apportioning method, which the Minister may make by legislative instrument under section 112-185.

The method has to take account of the deemed buy-back and of later spending in the cost base, including indexation, and has to work out the deemed sale price and the new cost base. The ATO calls it the apportionment method.

Income Tax Assessment Act 1997, compilation No. 268 (1 October 2026), s 112-185, s 112-155(3)(b); ATO, Capital gains tax reform (published 13 October 2026, QC 108170). Reviewed 24 October 2026. Fact apportioning-power.

The apportioning method had not been made at 24 October 2026: no instrument setting it out was on the Federal Register of Legislation.

The ATO says the Government is developing the method and that it will give guidance once the method has been enacted.

Federal Register of Legislation, search for "apportioning capital gains" on 24 October 2026 (only the Act and the amending Act; no instrument); ATO, Capital gains tax reform (published 13 October 2026, QC 108170); ATO, CGT reform: guidance and market valuations, tax professionals newsroom (published 19 October 2026, QC 108200). Reviewed 24 October 2026. Fact apportioning-not-made.

Treasury’s draft apportioning method, released for consultation from 4 to 21 August 2026, would estimate the 30 June 2027 value from the asset’s purchase cost and its later sale price, assuming steady compounding growth over the whole time it was held.

As drafted (section 5(2)), it would cover only real property and assets without a readily ascertainable market value, so listed shares would not be covered. A draft is not law and may change.

Treasury, exposure draft Income Tax Assessment (Method for Apportioning Capital Gains and Capital Losses) Determination 2026, section 5; Treasury, draft explanatory statement for the apportioning method determination (August 2026); Treasury, Capital Gains Tax and Negative Gearing: Tranche 2 Legislation (consultation c2026-792170, 4 to 21 August 2026); Treasurer, Consultation on next tranche of tax reform legislation (media release, 4 August 2026). Reviewed 24 October 2026. Fact apportioning-draft.

The ATO said on 19 October 2026 that a valuation does not have to be in place on 30 June 2027 and should not be obtained before that date, because a valuation can’t be forward-looking.

A valuation as at 30 June 2027 is therefore prepared after that date.

ATO, CGT reform: guidance and market valuations, tax professionals newsroom (published 19 October 2026, QC 108200). Reviewed 24 October 2026. Fact ato-no-valuation-before-date.

A valuation as at 30 June 2027 reflects the market on that date, using information known or reasonably foreseeable at that date, as the ATO’s valuation guide expects.

The guide says a valuation should be based on the most relevant and reliable information known, or that could reasonably be foreseen, at the valuation date. Records kept from around 30 June 2027 can help show what was known then.

ATO, Market valuation for tax purposes (guide, current at February 2025); ATO, Market valuation of assets (last updated 22 June 2026). Reviewed 24 October 2026. Fact value-at-date.

The ATO says it will issue guidance on working out the market value of certain types of assets, the types of professionals to consider for a valuation, and the records to keep.

Its 13 October 2026 page says this will come before the start date. Its existing guide, Market valuation for tax purposes, already sets out its expectations and the evidence it looks for.

ATO, CGT reform: guidance and market valuations, tax professionals newsroom (published 19 October 2026, QC 108200); ATO, Capital gains tax reform (published 13 October 2026, QC 108170); ATO, Market valuation for tax purposes (guide, current at February 2025). Reviewed 24 October 2026. Fact ato-guidance-coming.

The ATO says the existing record-keeping rules continue for assets held before 1 July 2027, including when you acquired the asset, its value then, what you paid and any changes in its character or ownership.

It also says there is no change to when a CGT event goes in your tax return.

ATO, Capital gains tax reform (published 13 October 2026, QC 108170). Reviewed 24 October 2026. Fact ato-records.

The ATO’s guide says that, for tax purposes, a valuation’s acceptability usually depends on the process followed rather than who did it, with some exceptions.

It says a report by a suitably qualified professional following accepted standards is considered more reliable, and that the taxpayer stays responsible for a replicable and defensible valuation. It also notes there is no formal admissions board in Australia for business valuers.

ATO, Market valuation for tax purposes (guide, current at February 2025). Reviewed 24 October 2026. Fact ato-process-over-person.

Companies never had the 50% CGT discount, and the new indexation, the 30% minimum tax and the main deemed sale do not apply to a company’s own assets.

The exception is a company’s pre-CGT assets, which have their own deemed sale. Shares in the company held by individuals or trusts are covered in the usual way.

Income Tax Assessment Act 1997, compilation No. 268 (1 October 2026), s 115-10, s 110-36(1A), s 119-10(1), s 112-155, s 112-165, s 112-175. Reviewed 24 October 2026. Fact companies.

Shares in a company and units in a unit trust are CGT assets, so the deemed sale generally applies to shares and units an individual or trust holds on 30 June 2027.

That includes shares in a private company held by you or your family trust, even though the company’s own assets are outside the rule.

Income Tax Assessment Act 1997, compilation No. 268 (1 October 2026), s 108-5 (note 1), s 112-155, s 112-165. Reviewed 24 October 2026. Fact shares-and-units.

A company acting as trustee is treated as a different entity from the same company acting for itself, and a provision about companies does not cover a company acting as trustee.

So assets a corporate trustee holds for a family trust generally fall under the trust rules, not the company rules. An accountant can confirm this for a particular structure.

Income Tax Assessment Act 1997, compilation No. 268 (1 October 2026), s 960-100(3) and (4). Reviewed 24 October 2026. Fact trustee-capacity.

A home that has been your main residence for the whole time you have owned it is generally exempt from CGT, and the ATO says the main residence exemption is not changing.

A home that was your main residence for only part of that time, or was used to earn income, can be partly taxable. The ATO also says the meaning of a CGT asset and the framework of CGT events are not changing.

Income Tax Assessment Act 1997, compilation No. 268 (1 October 2026), s 118-110 (and note 1), s 118-185; ATO, Capital gains tax reform (published 13 October 2026, QC 108170). Reviewed 24 October 2026. Fact main-residence.

The four small business CGT concessions remain, and from the income year that includes 1 July 2027 the 50% active asset reduction uses a $10 million aggregated turnover test instead of $2 million.

The 15-year exemption, the retirement exemption and the roll-over keep the $2 million turnover test, and the $6 million net asset test remains an alternative. For the part of a gain up to 30 June 2027, eligibility is tested as at the date of the later sale.

Income Tax Assessment Act 1997, compilation No. 268 (1 October 2026), s 152-1, s 152-10(1AA), s 152-205(2), s 112-160(3)(d); Treasury Laws Amendment (Tax Reform No. 1) Act 2026, as made, Schedule 1, items 77B, 78A, 79A and 82; Parliamentary Library, Bills Digest No. 24, 2026-27, Treasury Laws Amendment (Tax Reform No. 3) Bill 2026 and related Bill (22 October 2026). Reviewed 24 October 2026. Fact small-business-concessions.

State rules on who may value land differ: Queensland requires valuers to be registered, Western Australia requires land valuers to be licensed, and South Australia and Tasmania set qualification rules for land valuers.

New South Wales ended its registration scheme for valuers on 1 March 2016. The ATO’s guide says a valuation’s acceptability for tax usually depends on the process rather than who did it.

ATO, Market valuation for tax purposes (guide, current at February 2025); Land Valuers Act 1994 (SA), s 5; Land Valuers Act 2001 (Tas), s 4; Revenue NSW, ruling FHOG 003: Valuation of property, suitably qualified person (effective 1 March 2016). Reviewed 24 October 2026. Fact state-valuer-rules.

The change is law: announced in the 2026-27 Budget on 12 May 2026, it was made by the Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (Act No. 49 of 2026), which received Royal Assent on 26 June 2026.

The ATO says the changes apply from 1 July 2027, do not apply to the 2025-26 tax return, and could first affect the 2027-28 return. The first stage also includes the Income Tax Rates Amendment (Tax Reform No. 1) Act 2026 (Act No. 50 of 2026).

Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (Act No. 49 of 2026, assented to 26 June 2026), Federal Register of Legislation; ATO, Capital gains tax reform (published 13 October 2026, QC 108170); ATO, Tax reform: boosting home ownership, reforming negative gearing and capital gains tax (last updated 29 June 2026, QC 107304); Income Tax Rates Amendment (Tax Reform No. 1) Act 2026 (Act No. 50 of 2026, assented to 26 June 2026), Federal Register of Legislation; Parliamentary Library, Bills Digest No. 24, 2026-27, Treasury Laws Amendment (Tax Reform No. 3) Bill 2026 and related Bill (22 October 2026). Reviewed 24 October 2026. Fact law-act-49.

The Treasury Laws Amendment (Tax Reform No. 3) Bill 2026, introduced on 14 October 2026, would adjust how the CGT changes apply in some cases and define a new residential dwelling in the Act, but it is not law.

Its schedules include the 2028 minimum tax on discretionary trusts (Schedule 1), adjustments to the CGT changes for trusts, deceased estates and foreign and temporary residents (Schedule 4) and the new residential dwelling definition (Schedule 5). It is before the House of Representatives, and the Senate Economics Legislation Committee is due to report on it by 13 November 2026.

Parliament of Australia, Treasury Laws Amendment (Tax Reform No. 3) Bill 2026; Parliamentary Library, Bills Digest No. 24, 2026-27, Treasury Laws Amendment (Tax Reform No. 3) Bill 2026 and related Bill (22 October 2026). Reviewed 24 October 2026. Fact tr3-bill.

A separate proposal for a 30% minimum tax on the net income of certain discretionary trusts from 1 July 2028, in Bills introduced on 14 October 2026, is not law and is not part of the 30 June 2027 change.

The Income Tax Rates Amendment (Minimum Tax on Discretionary Trusts) Bill 2026 would impose the tax, and Schedule 1 of the Tax Reform No. 3 Bill would set up the regime. Both Bills are before the House of Representatives.

Parliament of Australia, Income Tax Rates Amendment (Minimum Tax on Discretionary Trusts) Bill 2026; Parliament of Australia, Treasury Laws Amendment (Tax Reform No. 3) Bill 2026; Parliamentary Library, Bills Digest No. 24, 2026-27, Treasury Laws Amendment (Tax Reform No. 3) Bill 2026 and related Bill (22 October 2026). Reviewed 24 October 2026. Fact trust-minimum-tax-bill.

Valuation Day is an education platform by Valuo, and Valuo’s name for 30 June 2027; it is not an official government name.

It explains the CGT change in plain English for business owners, property investors, family trusts, shareholders and accountants. Valuations are by Oliver Group, part of Valuo. It is general information, not tax advice.

Valuation Day, About. Reviewed 24 October 2026. Fact campaign-name.

The CGT 2027 Valuation Package is $1,995 + GST for an established business with annual turnover under $2 million: a signed planning valuation now, with the update to 30 June 2027 included in the fee.

It covers a business, shares or trust units. The planning valuation is at a current date, and the update to 30 June 2027 is prepared after that date.

Valuation Day, Packages. Reviewed 24 October 2026. Fact offer-business-package.

For a business with annual turnover under $2 million, one valuation date only is $1,495 + GST; for turnover of $2 million or more, the fixed fee is confirmed in writing on the first call.

The fee is fixed in writing before any work starts.

Valuation Day, Packages. Reviewed 24 October 2026. Fact offer-one-date.

Property valuations through Valuation Day cover investment, holiday and commercial property in New South Wales, Victoria, the ACT and the Northern Territory, and each property is valued and signed by a property valuer, never Oliver Group, with the fee quoted in writing before any work begins.

Oliver Group arranges your property valuation with a property valuer, who prepares and signs it. Property can be valued as at today, and as at 30 June 2027 once that date has passed. Oliver Group values businesses, shares and trust units.

Valuation Day, Property. Reviewed 24 October 2026. Fact offer-property.

Valuation Day offers $300 off the Oliver Group business fee when a property is added.

The property fee itself is quoted in writing before any work begins.

Valuation Day, Packages. Reviewed 24 October 2026. Fact offer-package-discount.

Oliver Group provides valuation services only and does not give tax advice, so tax questions go to your accountant or tax adviser.

Whether a valuation may be useful for you, and which option suits you, are questions for your accountant.

Valuation Day, About. Reviewed 24 October 2026. Fact no-tax-advice.