Five things to get in order before 1 July 2027
Gains from 1 July 2027 are taxed under new rules. These are the records every private company and shareholder should check now.
· 1 min read · For directors
The CGT reform applies to gains that accrue from 1 July 2027, and assets held on 30 June 2027 are treated as sold and reacquired on that date. That makes some records far more important than they used to be.
1. What you hold and what it cost
Confirm your share registers and issue history: who holds what, which class, when it was issued and what was paid. The cost base is the starting point for every calculation, and founder shares often have a cost base of nil.
2. Evidence of value at 30 June 2027
The value on 30 June 2027 splits each future gain between the old rules and the new. A supportable value at that date, made at the time, is far easier to stand behind than one reconstructed years later. See examples 5 and 6 for how much it can matter.
3. Pre-CGT shares
Shares acquired before 20 September 1985 have been outside CGT. Growth to 30 June 2027 stays tax-free, but growth after is taxed. Check CGT event K6 first: if most of the company's value sits in assets acquired after 1985, a sale may already be taxable.
4. Timing of sales and payouts
For CGT, the contract date, not settlement, is when a sale happens. Earn-outs, surplus cash and dividends paid around the date can all change the result. Arranging things purely to shift value across the date risks the general anti-avoidance rule.
5. Which concessions might apply
Check whether the small business concessions apply (the new $10m threshold only covers the 50% active asset reduction), and whether your company could qualify for the proposed IBCC.
Try your own numbers
The CGT calculator has 24 worked examples covering founders, family companies, trusts, employees and investors.
General information only, not tax advice. Measures may change as legislation progresses.