What if I sell in June 2027 versus July 2027?

Under the new rules (law since June 2026), 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 new 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 replacement of the 50% CGT discount with cost base indexation and a 30% minimum tax — now law — applies to capital assets held by individuals generally, including shares and crypto, not only property. It also covers gains that accrue from 1 July 2027 on pre-CGT assets (bought before 20 September 1985), which were previously exempt. 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 replaced the 50% CGT discount from 1 July 2027, and Parliament passed it into law in June 2026. 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. The CGT reform is now law, but some technical rules for complex situations are still being finalised. Always speak to a registered tax agent (and, where relevant, a licensed financial adviser) about your own circumstances before acting.

Quick answer

The gain you've already made keeps the 50% discount whether you sell before or after 1 July 2027. What changes is how growth from that date is taxed: indexed for inflation, with a 30% minimum rate. So the question isn't really “sell before the deadline”; it's how much more you expect it to grow, at what rate, and what you'd pay on that growth. Compare both at your numbers below.

Compare the two, at your numbers

Rough figures for an investment you own. Nothing you enter is saved or sent.

You bought it for (cost base)$

Bought inYear

It's worth about this now$

Or sell in JulyFor about$

Your taxable income in the year you sell (before the gain)

Inflation per year, from 1 July 2027

I'll get a valuation at 1 July 2027 instead of using the ATO formula

Sell before 1 July 2027

$48,000

estimated tax on the gain

Sale price$900,000

Gain$300,000

Taxable, after the 50% discount$150,000

You keep after tax$852,000

Sell in July 2032

$82,390

estimated tax on the gain

Sale price$1,150,000

Value at 1 July 2027 (ATO formula)$938,430

Taxable gain to 1 July 2027 (50% off)$169,215

Taxable gain after, above inflation$88,252

You keep after tax$1,067,610

What the change does to the later sale

Under the old rules$88,000

Under the new rules$82,390

About $5,610 less tax on the later sale than if the 50% discount still applied to the whole gain. The gain you've already made keeps the 50% discount whether you sell before or after 1 July 2027; the change only affects growth from that date.

Estimate only, on the rules in the Budget 2026-27 tax explainer (law since June 2026). It uses one marginal rate (a large gain can push part of it into a higher bracket), ignores selling costs, losses and any income support exemption, and doesn't weigh the money itself: holding costs, rent, interest or the market. Not advice; talk to a registered tax agent before you decide.

1. What is actually changing on 1 July 2027

Under the reform (law since June 2026), 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. You set that split in the tax return for the year you sell, either with a valuation at 1 July 2027 or with an ATO formula that assumes steady growth between your purchase and sale; the ATO will provide tools for both. Source: Budget 2026-27 tax explainer. 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.

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