What if I sell in June 2027 versus July 2027?

Under the proposed rules, the new CGT treatment applies to gains that accrue from 1 July 2027. Gains that built up before that date keep the existing 50% discount regardless of when you sell. So the date the gain accrued matters more than the exact day you sell — but selling before the start date locks in the old 50% discount on the whole gain. This is exactly the kind of timing question to confirm with a registered tax agent, because the transitional rules are detailed.

Does the CGT reform affect my main home?

No. The main residence exemption — which generally makes the family home you live in CGT-free — is not changed by the 2026-27 Budget. The CGT reform targets investment assets, not the home you live in.

What if I have capital losses?

Capital losses still offset capital gains, both under the current rules and the proposed ones, and unused losses carry forward to future years. If you are sitting on losses, they can reduce or remove the gain you would otherwise be taxed on, which changes the maths of selling now versus later. Bring them into any calculation you do with a tax agent.

Does this apply to shares and crypto, not just property?

Yes. The proposed replacement of the 50% CGT discount with cost base indexation and a 30% minimum tax applies to capital assets held by individuals generally — including shares and crypto — not only property. The negative gearing change is property-specific, but the CGT change is broader. The same 'how much of the gain accrued before vs after 1 July 2027' question applies to all of them.

Should I Sell My Investment Property Before June 2027?

The 2026-27 Budget proposed replacing the 50% CGT discount from 1 July 2027. If you own an investment property, that naturally raises the question of whether to sell before then. This page is a decision framework to help you think it through — it is general information, not advice about your situation.

Read this first

This is general information only — not personal tax or financial advice. Selling an investment property is a major decision with capital gains tax, cash-flow and personal consequences, and the CGT reform is still subject to legislation. Always speak to a registered tax agent (and, where relevant, a licensed financial adviser) about your own circumstances before acting.

Quick answer

There is no universal answer. Gains that accrue before 1 July 2027 keep the 50% discount even if you sell later — so the real question is how much of your gain has already accrued versus how much is still to come, alongside your income, hold period and any losses. For most people this needs a registered tax agent to model properly.

1. What is actually changing on 1 July 2027

Under the proposed reform, the 50% CGT discount is replaced — but only for the part of a gain that accrues from 1 July 2027 onward. The gain that built up before that date still gets the 50% discount. After it, the new treatment applies: cost base indexation plus a 30% minimum tax on the taxable gain.

So selling is not simply “before good, after bad”. The question is how much of your total gain sits on each side of 1 July 2027. An asset that has already done most of its growing is in a very different position from one that is expected to keep climbing. Source: ATO — reforming negative gearing and CGT and budget.gov.au — tax reform. For how CGT works today, see our capital gains tax guide, and for the full budget picture, the 2026 Budget tax changes explainer.

2. The variables that actually drive the decision

Whether selling early helps depends on the interaction of several things — change one and the answer can flip:

How long you have held it. A long-held property has a large gain already accrued under the 50% discount; a recent purchase has little.
Your taxable income. This sets your marginal rate, which is what the gain is taxed at. Selling in a high-income year is more expensive than in a low-income year.
Your estimated total gain. The bigger the gain, the more the discount mechanism matters.
Bought before or after Budget night (12 May 2026)? This affects negative gearing, not CGT — but it is part of the overall hold-cost picture for a recent purchase.
Other capital losses. Losses offset gains and carry forward, and can materially reduce the tax either way.

3. Three illustrative scenarios

These are simplified illustrations to show how the variables pull in different directions — not predictions about your property. The “likely direction” is a starting point for a conversation with a tax agent, nothing more.

Investor	Situation	Likely direction
Long-term holder	Bought 2010, large gain mostly already accrued, high income	Most of the gain already qualifies for the 50% discount, so the reform touches only future growth — often less urgent to sell purely for tax. Worth modelling.
Recent buyer	Bought 2024, smaller gain so far, middle income	Little gain accrued yet, so more of the future gain falls under the new rules — but a small current gain means selling now saves little. Genuinely neutral / complex; depends on growth expectations.
Post-Budget-night buyer	Bought an established rental after 12 May 2026	Faces both the negative gearing quarantine (from 1 Jul 2027) and the CGT change on future gains. Get professional advice — the interaction is the whole point.

Notice none of these is a clean “yes, sell”. That is the honest answer: the reform changes the maths at the margin, but rarely makes the decision for you.

4. What “cost base indexation” means as the alternative

The replacement for the 50% discount is cost base indexation. In plain English: your original purchase cost (the cost base) is increased in line with inflation over the time you held the asset, and only the gain above that inflated cost is taxed. You are taxed on the real gain, not the part that is simply rising prices.

When might indexation beat the old 50% discount? Broadly, in high-inflation periods and over long hold periods, because more of the headline gain gets stripped out as inflation. When inflation is low or the hold is short, the flat 50% discount often did more of the work. There is no single winner — it depends on the numbers, which is why this is a modelling exercise, not a rule of thumb. Background: ATO — the CGT discount.

How to approach it

A sensible order: estimate your overall tax position first, get a feel for the size of the gain and which side of 1 July 2027 it falls on, then take those numbers to a professional who can run your actual figures and the transitional rules. Don't let a tax change alone drive a property decision that is also about cash flow, the market and your plans.

Frequently asked questions

Get your numbers straight first

Work out your estimated tax position with EOFYmate's free calculator, then take those numbers to a registered tax agent for personalised advice on selling or holding.

Estimate my tax position free