13/05/2026
🚨 Proposed Capital Gains Tax Changes Explained Simply 🚨
Here’s a very easy example of what the proposed property tax changes could mean for investors from 1 July 2027.
🏡 Example:
You buy an investment property for $800,000
Later sell it for $1.3 million
Profit = $500,000
✅ CURRENT RULES:
If held longer than 12 months, you get a 50% CGT discount.
So:
$500,000 profit becomes only $250,000 taxable income.
❌ PROPOSED NEW RULES:
Instead of halving the gain, the government would only adjust your purchase price for inflation (“indexation”).
Example:
If inflation over that time was 20%:
Your $800,000 purchase price becomes:
$960,000 indexed cost base
So:
$1.3m sale price minus $960k
= $340,000 taxable gain
📌 Result:
Under the proposed rules, investors could pay tax on $340,000 instead of $250,000.
That’s potentially tens of thousands more tax.
The changes are designed to:
• reduce speculation on existing homes
• encourage investment into NEW housing supply
• make tax concessions less generous on established properties
Interesting times ahead for the Australian property market. 👀
As always if you need to chat further - I am only a coffee away 💚💚💚