If you hold assets that were acquired before 1 July 2027, the Capital Gains Tax (CGT) rules are about to change in an important way — splitting your eventual gain into two distinct components with different treatment. For assets that:
- are held by an Australian resident individual or trust on 30 June 2027
- were acquired before 1 July 2027
- and are sold after 1 July 2027
The legislation effectively creates two components of the eventual capital gain.
1. Growth up to 30 June 2027
Any gain accumulated up to 30 June 2027 retains access to the existing 50% CGT discount. This ensures the benefit of the current system is preserved for historical growth.
2. Growth from 1 July 2027
The asset’s value at 30 June / 1 July 2027 becomes the new starting point. Future growth is calculated using indexation of the cost base, rather than the discount method.
Valuing your Assets
Because of this shift, it is in your best interests to ensure you have a market valuation as at 30 June 2027. This valuation will anchor the cost base for future CGT calculations.
There has been considerable commentary in the media about booking valuers now.
There is no benefit in organising a valuation today. Although the valuation is required as at 30 June 2027, it does not need to be completed on that exact day. Valuers can prepare a retrospective valuation after year‑end.
If you’d like further information on the changes or wish to discuss how this impacts you or your family please contact me below.