EOFY Capital Gains Tax Planning (2025-26): Sell Before or After 30 June?

General information only. This is not tax or financial advice. Consult a registered tax agent for advice specific to your situation.

The timing of a capital gains tax (CGT) event around 30 June can materially change the tax outcome. Whether an asset sale falls in the 2025-26 or 2026-27 income year affects which year the gain is assessed, what other income it stacks against, and whether the 50% CGT discount is available.

When does a CGT event happen?

For most asset sales, the CGT event happens at the time you enter into the contract, not when settlement occurs. This is a common source of confusion.

• Shares: The CGT event date is typically the trade date (the date the sell order executes), not the settlement date
• Property: The CGT event date is the contract date (the date contracts are exchanged), not the settlement date
• If there is no contract, the CGT event generally happens when the change of ownership occurs

This means if you sign a property contract on 29 June, the gain falls in 2025-26 even if settlement is months later.

The 12-month CGT discount

Individual taxpayers and trusts can apply a 50% discount to a capital gain if the asset was held for at least 12 months before the CGT event. Companies do not receive this discount.

If you are close to the 12-month mark, timing matters:

• An asset acquired on 15 July 2025 needs to be held until at least 16 July 2026 to qualify for the discount
• Selling on 30 June 2026 (11.5 months) means no discount — the full gain is assessable
• Waiting two weeks past 30 June could halve the taxable gain

If the discount is worth more than any tax-rate advantage of selling this year, waiting is usually the better outcome.

Crystallising capital losses before 30 June

Capital losses can only offset capital gains, not ordinary income. If you have unrealised losses on assets you no longer want to hold, selling before 30 June creates a capital loss that offsets gains in the same year.

• Review your portfolio for assets sitting at a loss
• Losses are applied against gains in a specific order: first against non-discounted gains, then against discounted gains (before the discount is applied)
• Unused capital losses carry forward indefinitely but cannot be carried back

Wash sale warning

The ATO has flagged wash sales as an area of compliance focus. A wash sale occurs when you sell an asset to crystallise a loss and then buy the same or substantially similar asset back shortly afterwards.

• There is no specific statutory holding period like in some other countries, but the ATO applies a general anti-avoidance rule (Part IVA) to arrangements entered into for the dominant purpose of obtaining a tax benefit
• If you sell shares at a loss and buy identical shares back the next day, the ATO may deny the loss
• The more artificial the arrangement, the higher the risk

If you genuinely want to exit a position, the loss is legitimate. If the sole purpose is to create a tax loss while maintaining the same economic exposure, that is where the risk lies.

Deferring gains to the next year

If your income is expected to be lower in 2026-27 than in 2025-26, deferring a sale to after 30 June means the gain is assessed in a lower-income year, potentially at a lower marginal rate.

Reasons your income might be lower next year:

• Retirement or reduced work hours planned
• A sabbatical or career break
• Expiry of a contract or end of a project
• The 2026-27 tax rate changes (if legislated) may also affect the comparison

Conversely, if your income will be higher next year, bringing the sale forward into 2025-26 may be better.

Small business CGT concessions

Small business owners selling active assets may be eligible for significant CGT concessions, but some of these have conditions tied to the end of the income year.

• The small business 15-year exemption requires the asset to have been held for 15 years and the taxpayer to be 55 or over and retiring
• The 50% active asset reduction applies on top of the general 50% discount
• The retirement exemption has a lifetime limit of $500,000
• The rollover allows deferral if a replacement asset is acquired

These concessions have specific eligibility tests. If you are considering selling a business asset, the timing relative to 30 June should be discussed with your adviser.

Action items before 30 June

• Review unrealised gains and losses across your portfolio
• Check whether any planned sales are approaching the 12-month discount threshold
• If crystallising losses, ensure the sale is genuine and not a wash sale arrangement
• Compare your expected taxable income this year versus next year
• For property sales, remember the contract date is the CGT event date
• If eligible for small business CGT concessions, confirm all conditions are met before transacting

Key dates

• 30 June 2026 — Last day to realise capital gains or losses in the 2025-26 income year. For contracts, the signing date is what matters.
• 1 July 2026 — Any CGT event from this date falls into the 2026-27 income year.

Next step

• Estimate your CGT liability with the Capital Gains Tax Calculator

This is general information only. Rules and thresholds can change. Check with the ATO or a registered tax agent for your specific situation.