What replaced the 50% CGT discount?
Indexation and the 30% minimum tax replacing the 50% discount from 1 July 2027.
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 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.
General advice only. This content does not take into account your personal objectives, financial situation or needs. Ramsey Property Wealth Pty Ltd is a Credit Representative under Australian Credit Licence 389087. Legislative measures are drawn from the Treasury Laws Amendment (Tax Reform No. 1) Act 2026. Seek personalised advice before acting.