2027 CGT Reform Calculator
Compare the current 50% CGT discount against the proposed 2027 CPI indexation rules. See exactly how the new 30% minimum tax floor and the 1 July 2027 "hybrid" changeover will affect your tax bill.Read our full guide
Summary of the 2027 Changes
- Indexation Replaces Discount: The 50% CGT discount is scrapped for gains accruing after 1 July 2027. Instead, your cost base is indexed to inflation (CPI).
- 30% Minimum Tax: A new minimum tax rate of 30% applies to real capital gains, regardless of your marginal tax rate.
- Hybrid System for Existing Assets: Assets bought before 1 July 2027 get the 50% discount on gains up to that date, and indexation on gains after that date.
Important Context
Calculations do not include the 2% Medicare Levy.
You would pay MORE tax
Under the proposed 2027 rules, your final tax bill would change by $586.77 compared to the current 50% discount method.
How this is calculated
- Hybrid Split: Because you bought the asset before 1 July 2027, the calculation is split into two parts.
- Part 1 (Pre-2027): The gain from your purchase price to the 1 July 2027 value ($15,000.00) receives the traditional 50% discount (if held > 12 months prior to transition).
- Part 2 (Post-2027): The 1 July 2027 value becomes your new cost base. It is indexed by 3.0% inflation for the remaining time held, becoming $15,914.14. You only pay tax on the "real" gain above this indexed amount.
- 30% Minimum Tax: The new 30% minimum tax floor applies only to the post-2027 real gain.
Official Sources & Further Reading
- Tax reform | Budget 2026–27 (budget.gov.au)
Official government announcement detailing the removal of the 50% discount and introduction of the 30% minimum tax.
- ATO Consumer Price Index quarterly rates
Historical and current CPI data used for calculating indexation factors.
Disclaimer: This calculator provides an estimate based on simplified assumptions (such as a constant annual inflation rate) and the initial budget announcements. It does not constitute financial or taxation advice. The final legislation may differ. Always consult a registered tax agent for advice specific to your circumstances.
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