What has replaced the 50% CGT Discount?
Below is your complete guide to the 2026 CGT reforms - what’s changing, when the new rules apply,
and what they could mean for property investors. f
All your CGT Questions.
Answered.
How does cost-base indexation work?
Indexation adjusts the asset’s cost base for inflation across the holding period, so capital gains tax applies to the real gain rather than the nominal gain. Where the old 50% discount halved the assessable gain regardless of how long it was held, indexation ties the relief to actual inflation over the time the asset was owned.
What is the 30% minimum tax on net capital gains?
The reform introduces a 30% minimum tax on net capital gains for individuals, trusts and partnerships. It sets a floor on the effective rate applied to those gains from 1 July 2027, alongside the move to indexation. Together the two mechanisms replace the single flat 50% discount that applied before.
Does this apply to property I already own?
The change applies to gains arising on or after 1 July 2027, not to the ownership of the asset itself. A gain realised before that date is assessed under the existing 50% discount. A disposal on or after 1 July 2027 is assessed under indexation and the 30% minimum tax, whenever the asset was acquired.
How does this interact with the negative gearing changes?
Both take effect on 1 July 2027. An affected established property can face quarantined rental losses and the new CGT method at the same time, which changes both the holding economics and the disposal economics. That is why the two changes are best assessed together for a specific portfolio rather than in isolation.
What replaced the 50% CGT discount?
From 1 July 2027, the 50% capital gains tax discount is replaced by cost-base indexation plus a 30% minimum tax on net capital gains for individuals, trusts and partnerships. It applies to gains arising on or after 1 July 2027; earlier gains keep the existing discount.
What should I model before selling?
Run the disposal under both methods: the existing 50% discount if realised before 1 July 2027, and indexation plus the 30% minimum tax if
realised on or after. The gap depends on the holding period, the inflation over it, and the entity holding the asset. The Ramsey Portfolio
Stress Tester and a review work this through for a specific portfolio.
Investor Hub Contributors
The Ramsey Property Investor Hub brings together economic research, property market intelligence and practical
portfolio experience to help investors understand how changes to legislation, taxation and the broader property environment may affect
their investment decisions.
Dr Prabath Morawakage, PhD
Head of Property Economics and Intelligence, Ramsey Property Wealth
PhD-qualified property economist with experience in property economics, real estate finance, econometrics and
academic research. Prabath brings the evidence and economic lens to help investors understand how policy and market changes may affect
property investment outcomes.
Ewan Ramsey
Investor, Founder & CEO, Ramsey Property Wealth
A highly- qualified, experienced property investor and portfolio wealth strategist with 18+ years across
property finance, pirvtae lending, property development and investment strategy. Ewan brings the practical investor lens,
translating market, tax and lending changes into what they may mean for building and managing a compounding property portfolio.
Professional advice. Intelligent decisions.
Long-term wealth.
A complimentary 30-minute Discovery Session with a senior adviser. We assess your current position, clarify what the 2026 changes mean for
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