Capital Gains Tax · Calculator

CGT Discount Reform Calculator: Sell Before 2027 or Hold?

CGT reform is now law. Compare selling before 1 July 2027 with the 50% discount vs holding into cost-base indexation + 30% minimum tax, side by side.

If you hold and sell later
Enter acquisition date, cost base, current value and income to compare your options.

How the 1 July 2027 CGT reform works

The reform is now law: it passed Parliament on 25 June 2026 and received royal assent on 26 June 2026 (Treasury Laws Amendment (Tax Reform No. 1) Act 2026, Act No. 49 of 2026, plus Act No. 50 of 2026). From 1 July 2027, the 50% CGT discount ends for individuals, trusts and partnerships: the cost base of an asset is indexed for CPI and a 30% minimum tax applies to the post-reform gain.

Assets owned across the reform date are split under the Subdiv 112-E transitional: every asset held at 30 June 2027 is deemed sold and reacquired just before 1 July 2027. The pre-reform notional gain keeps the legacy 50% discount and is deferred until you actually sell; post-reform growth uses the new rules. The split is set primarily by market valuation at 1 July 2027 — keep evidence of your asset's value at that date — or, by election, an apportioning method. This calculator approximates the apportioning-method election using hold-period time apportionment. See our full explainer on cost-base indexation and the 30% minimum tax.

Frequently asked questions

Is the CGT discount reform actually law?
Yes. It passed both Houses on 25 June 2026 and received royal assent on 26 June 2026 as the Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (Act No. 49 of 2026) and the Income Tax Rates Amendment (Tax Reform No. 1) Act 2026 (Act No. 50 of 2026), with 33 Senate amendments.
What changes on 1 July 2027?
For individuals, trusts and partnerships, the 50% CGT discount is replaced by CPI cost-base indexation plus a 30% minimum tax on the post-reform gain. Every asset held at 30 June 2027 is deemed sold and reacquired (Subdiv 112-E): the pre-reform gain keeps the 50% discount and is deferred until you actually sell, with the split set by market valuation at 1 July 2027 or an elected apportioning method.
Is selling before 1 July 2027 always better?
No. Holding lets the asset keep growing, and for slow-growth assets the indexation uplift can shelter most of the reform-period gain. The calculator compares net after-tax proceeds for both timings so you can see which wins for your asset.
Does this apply to my main residence?
No — the main residence exemption is unchanged. New residential dwellings are the only asset class that retains the 50% discount (your choice of discount or indexation); affordable housing keeps its existing up-to-60% discount, and the four small business CGT concessions survive. Tick the exemption box and the calculator shows no reform impact.
Do pensioners keep the 50% discount?
No. Recipients of payments on the statutory list in s 119-15 (Age Pension, DSP, JobSeeker, Carer Payment and others) are exempt from the 30% minimum tax only — their gains still move from the 50% discount to cost-base indexation from 1 July 2027.
Which date controls the CGT event?
For a standard sale (CGT event A1) the CONTRACT date controls, not settlement — a contract signed on or before 30 June 2027 falls under the old rules even if it settles later. And for assets you keep, the deemed sale on 30 June 2027 preserves the 50% discount on gains accrued to that date, so there is no need to rush a sale purely to lock in the discount.

Tax Accuracy & Sources

Reviewed: March 2026 · Tax year: 2026-27

Compares net after-tax proceeds for selling before vs after the 1 July 2027 CGT reform (now law — Acts 49 and 50 of 2026) using the 50% discount, cost-base indexation, and 30% minimum tax rules. The pre/post-reform split approximates the Subdiv 112-E apportioning-method election via time apportionment; a market valuation at 1 July 2027 is the primary method under the Act. Does not cover corporate taxpayers, SMSF, or assets subject to the main residence exemption.

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Last updated 2 July 2026 Tax year 2026-27

Data sources: ATO: Tax rates for Australian residents

This tool is general information only, not financial advice.

Updated July 2026 for the CGT reform as enacted (Treasury Laws Amendment (Tax Reform No. 1) Act 2026, Acts 49 and 50 of 2026, royal assent 26 June 2026), including the Senate amendments.

Reviewed by AusTax Tools Editorial Desk

Read our methodology →