CGT Reform 2027: What Investors Need to Know

If you own investment property, shares or business assets, the proposed capital gains tax changes announced in the 2026 Federal Budget are worth understanding.

Not to panic about. To plan around.

What’s proposed

From 1 July 2027, the Government proposes replacing the familiar 50% CGT discount with two new mechanisms:

• Cost base indexation (adjusting the cost base for inflation)
• A 30% minimum effective tax rate on post-commencement gains

Existing assets held before 1 July 2027 are expected to receive transitional treatment.

That means any gain on a long-held asset may need to be split — the portion earned before the transition date, and the portion earned after.

The valuation question

Here’s where it gets practical.

If gains need to be split at the transition date, the dividing line is value.

What was the asset worth on or around 1 July 2027?

Current proposals contemplate formal valuations or approved apportionment methods. But whatever methodology ultimately applies, having solid evidence of market value around the transition period is likely to matter.

Investors and business owners with significant assets should keep a close eye on the proposed CGT reforms. Depending on the final legislation, obtaining a valuation before any transition date may become an important tax planning opportunity.

This is not yet law

We want to be clear: these reforms are proposals, not legislation.

Much can change before any of this becomes law. Some measures may be amended, delayed or never proceed at all.

What we don’t recommend is making rushed decisions based on Budget headlines.

What we do recommend is staying informed, reviewing your long-term strategy, and being positioned to act if and when legislation arrives.

That’s what thoughtful planning looks like.

Want to talk through what this means for your situation? We’re always only one call away.

Book a conversation with the Lighthouse team → hello@lha.au · 02 9055 1330