Saša Peči Avenue Property

10/06/2026

15/05/2026

15/05/2026

Sharing my thoughts on the current property market and what the May Budget changes could mean for housing across Australia.

‘If the [current renters] were in a position to borrow, they would buy already,’ says agent Saša Peci.

👉 To read: https://go.epochtimes.au/qJNvpQ
👉 Follow (us) NTD Australia for more Aussie and the latest global stories.

12/05/2026

What the 2026–27 Budget CGT Reform Actually Means

The Budget introduces the biggest CGT changes since 1999.

Here’s the core shift:

“From 1 July 2027, the Government will… replace the 50 per cent CGT discount… with cost base indexation and a 30 per cent minimum tax rate on capital gains.”

This affects all CGT assets — property and shares — unless specifically exempt.

Let’s break it down into the three pillars:

1. The 50% CGT Discount Is Being Replaced

Old system (1999–2027):

• Hold asset ≥12 months → 50% discount on the capital gain.

• Simple, predictable, and extremely favourable for high-return assets.

New system (from 1 July 2027):

• No more 50% discount for gains accrued after 1 July 2027.

• Instead, CGT is calculated using:

a. Cost base indexation (inflation adjustment), and

b. A minimum 30% tax on real gains.

The document states:

“Indexation will be calculated using CPI… The 50 per cent CGT discount will apply to the difference between the asset’s cost base and its value at 1 July 2027.”

So the discount is grandfathered up to 1 July 2027.

2. Cost Base Indexation Returns (like pre‑1999)

Indexation adjusts your cost base upward for inflation, so you only pay tax on real gains.

Example from the document:

“Zoe’s indexed cost base… is $113. Zoe’s taxable capital gain is reduced from $25 to $12 under cost base indexation.”

What this means in practice

• If inflation is high → indexation is generous → taxable gain shrinks.

• If inflation is low → indexation is small → taxable gain is larger than under the 50% discount.

Treasury’s own analysis shows that over the past 20 years:

“The effective discount would have ranged from 35–60%… equivalent to an effective tax rate of 13–30%.”

So indexation is not always worse than the 50% discount — it depends on:

• inflation

• holding period

• asset return

3. A Minimum 30% Tax on Real Capital Gains

This is the biggest structural change.

“A minimum tax rate of 30 per cent will apply to real capital gains accruing from 1 July 2027.”

What this means

Even if your marginal tax rate is low in the year you sell, you cannot reduce CGT below 30% of the real gain.

Example from the document:

“Jack… pays an additional $1,600 in tax to bring the tax rate on his capital gain up to 30 per cent.”

This kills the strategy of:

• retiring early

• selling assets in low-income years

• paying very low CGT

4. Transitional Rules — Extremely Important

If you already own assets before 1 July 2027

Your gain is split into two buckets:

A. Gain accrued before 1 July 2027

• Still gets the 50% discount.

B. Gain accrued after 1 July 2027

• Uses indexation

• Subject to minimum 30% tax

The document states:

“Assets owned prior to 1 July 2027… will be treated under current arrangements on gains made prior to this date, and under the new arrangements for gains made after this date.”

This is a dual‑regime calculation.

5. How This Affects Investors (Shares + Property)

A. Investors with high-return assets (e.g., tech stocks, booming property markets)

You will pay more CGT under the new system.

Example from the document:

“Kate earns a higher 7.5% return… taxable gain $390,474 under indexation vs $265,258 under the 50% discount.”

Higher returns → indexation barely helps → taxable gain increases.

B. Investors with moderate returns (4–6% p.a.)

You will pay slightly more CGT than under the 50% discount.

Treasury’s 20-year averages show effective tax rates of:

• 18–30% at top marginal rate

• 13–20% at mid marginal rate

This is broadly similar to the current system, but slightly higher for strong assets.

C. Investors with low returns (≈ inflation)

You may pay less CGT.

Example:

“Ben earns 2.5%… he will not have a taxable capital gain under indexation… He will pay $24,858 less in tax.”

If your asset barely beats inflation → indexation wipes out the gain.

D. Investors planning to sell in low-income years

This strategy is now dead.

The minimum 30% tax ensures:

• You cannot drop CGT to 0–10% by selling in retirement.

• You cannot use low-income years to minimise CGT.

E. Investors who hold assets long-term

Indexation becomes more powerful the longer you hold.

But the minimum 30% tax still applies.

6. How This Affects Property Investors Specifically

Existing properties (owned before 12 May 2026)

• Negative gearing stays forever.

• CGT discount applies up to 1 July 2027.

• After that → indexation + 30% minimum tax.

Existing properties bought between 12 May 2026 and 30 June 2027

• Can negatively gear until 30 June 2027.

• After that → losses carried forward only.

Properties bought after 1 July 2027

• No negative gearing unless it’s a new build.

• CGT uses indexation + minimum tax.

7. How This Affects Share Investors

Shares are explicitly included:

“These changes will apply to all CGT assets (including property and shares).”

Meaning:

• No more 50% discount after 1 July 2027.

• Indexation applies.

• Minimum 30% tax applies.

This is a major change for long-term equity investors.

8. Summary — What It Means Overall

Winners

• Low-return assets

• Assets held during high inflation

• Investors who bought before 1 July 2027 (grandfathering helps)

• New-build property investors (retain 50% discount + negative gearing)

Losers

• High-return assets (tech stocks, booming property)

• Investors relying on low-income years to minimise CGT

• Investors buying established property after 1 July 2027

• High-income investors with strong capital growth

Overall effect

The system shifts from:

• rewarding high returns

to

• taxing real returns more consistently

and

• removing timing arbitrage (selling in low-income years).

29/04/2026

SOLD 🎉
37 Horseshoe Circuit, Yarrabilba
$1,033,000 STREET RECORD

Big congrats to our sellers 👏
Such an exciting next chapter ahead for the buyers 🏠

26/04/2026

🏡 SOLD | 13 Napier Crescent, Yarrabilba

Another fantastic result with a street record price 🎉

A huge congratulations to our sellers on achieving an outstanding outcome, and a warm welcome to the lucky buyers starting their next chapter.

13/04/2026

🏡 SOLD | STREET RECORD

16 Paradise Street, Yarrabilba has just sold for an incredible $990,000 💥

This beautiful 4 🛏 | 2 🛁 | 2 🚗 home on 588m² has set a new benchmark for the street.

Congratulations to our amazing sellers and welcome to the new owners 👏