The CGT reform is law and starts on 1 July 2027. The IBCC is still a bill. Content last reviewed 13 November 2026. See status
The core reform is law and applies to gains from 1 July 2027. Other parts are still bills. Here's what each one does, and which worked examples show it.
Last reviewed 13 November 2026For gains that accrue from 1 July 2027, the cost base is indexed for inflation instead of the gain being halved. Gains that accrued up to 30 June 2027 keep the 50% discount. Only new residential dwellings keep the discount going forward.
Example 12: Selling just after the dateThe Act adds a 30% minimum tax on capital gains. Some people are exempt, for example those receiving an exempting payment such as the Age Pension in the year of sale.
Example 20: A low-income retiree and the minimum taxThe value on 30 June 2027 splits each gain into the part taxed under the old rules and the part taxed under the new. A draft apportioning formula, not yet registered, offers an alternative for assets without a readily ascertainable market value.
Example 5: Front-loaded growthThe $10m turnover threshold applies only to the 50% active asset reduction. The 15-year exemption, retirement exemption and rollover keep the $2m turnover or $6m net asset tests.
Example 23: Company sale under the $10m thresholdA 50% discount for shares in eligible, registered innovative companies. Proposed in the Tax Reform No. 4 Bill, introduced on 27 October 2026.
The IBCC explainedA minimum tax for discretionary trusts from 1 July 2028, plus rules for AMITs, part-year residents and deceased estates. Proposed in Tax Reform No. 3.
See example 8General information only, not tax advice. Measures may change as legislation progresses.
Work through 24 real-world scenarios and compare the tax on each route, before and after the reform.