19/02/2026
Potential Capital Gains Tax discount changes
The controversial Capital Gains Tax (CGT) discount is making waves once again, with speculation rife that the federal government may slash the discount in the upcoming federal budget in May. No changes to the CGT discount have been announced or confirmed.
The CGT discount is a tax rule in Australia that lets you pay tax on only half of the profit you make from selling an investment - such as an investment property - if you’ve owned it for more than 12 months.
Economists, unions and other groups have called for cuts to the discount to discourage investors from investing in property in a bid to reduce competition for homes.
However, investors, property groups and other voices have warned that changes to the CGT discount could hurt home prices and the rental market.
Recent analysis by the Parliamentary Budget Office showed that the CGT discount in its current form would cost the federal budget $247 billion in forgone revenue over the next 10 years.
