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Tool · Australian property scenarios

Australian CGT Reform Property Scenarios

This tool explains common property CGT reform scenarios in plain language and lets you compare example outcomes using simplified assumptions.

It focuses on the broad contrast between the current 50% discount model and the proposed post-July 2027 indexation-plus-30% minimum-tax framing. The examples are intentionally general and rely on the values you enter.

Important limitation

General scenarios only. This page is for self-study and education, not personal tax, legal, or financial advice. Check the final legislation and consult an accountant or licensed adviser for your facts.

How to use this page

  1. 01

    Pick a scenario

    Choose the property timeline that best matches your example before editing the inputs.

  2. 02

    Use your assumptions

    Enter your own dates, proceeds, and inflation estimate so the formula stays visible.

  3. 03

    Treat it as a scenario

    I built this to think with, not to act on. Read each result as a what-if and check the details against your own situation.

The two reform models

Model

Existing model

For assets sold before 1 July 2027, the examples keep the existing 50% CGT discount treatment for eligible holdings.

Model

Proposed post-reform model

For later gains, the examples show nominal gain reduced by inflation and then apply the requested 30% minimum-tax illustration.

Step 1

Choose the scenario that matches your property

Use this when the property is sold before 1 July 2027 and you want a simple before-reform illustration.

Step 2

Run the scenario

Legacy discount example

Existing Asset Sale (Pre-July 2027)

For a disposal before 1 July 2027, this example keeps the legacy 50% discount treatment.

Best for
Good for understanding the existing 50% discount treatment before commencement.
You will enter
Purchase date, sale date, cost base, and sale proceeds.
You will see
Total cost base, nominal gain, and discounted taxable gain example.

Inputs

Example inputs

Use this when the property is sold before reform commencement.

Result

Example outcome

The panel updates as soon as your dates and amounts form a valid pre-reform example.

Total cost base

$685,000

Nominal gain

$235,000

Example taxable gain after 50% discount

$117,500

Legacy discount formula

max(0, $235,000 × 50.0%)

This is a simplified example of the discounted amount, not a full tax return result.

General scenarios only. This page is for self-study and education, not personal tax, legal, or financial advice. Check the final legislation and consult an accountant or licensed adviser for your facts.

Footnotes

Extra cases worth checking

These examples often change what people expect from a quick CGT estimate.

No real gain after inflation

›

If inflation absorbs the post-reform nominal gain, the indexed gain is floored at zero in this example.

  • A positive nominal gain can still become no indexed gain.
  • The tool shows the inflation adjustment explicitly so the zero result is traceable.

Capital loss or zero gain

›

If sale proceeds do not exceed the relevant cost base, the tool shows no taxable gain and highlights the loss or nil outcome.

  • This keeps negative amounts from becoming negative taxable values.
  • Loss treatment is more complex in real life and may depend on other capital gains.

Ineligible or out-of-scope property

›

Trust structures, joint ownership, foreign residency issues, and non-eligible housing are outside this simplified tool.

  • The carve-out comparison is blocked when the user does not confirm new-build eligibility.
  • Complex ownership and residency outcomes should be checked with a professional adviser.

Assumption-heavy valuations

›

The cross-reform example depends on an assumed market value at 1 July 2027, which can materially change the split outcome.

  • The tool labels that value as a user assumption, not a formal valuation.
  • If the estimate is uncertain, the output should be treated only as a scenario illustration.

General scenarios only. This page is for self-study and education, not personal tax, legal, or financial advice. Check the final legislation and consult an accountant or licensed adviser for your facts.

Frequently asked questions

What is the proposed Australian CGT reform for property?
The scenarios on this page contrast the current capital gains tax treatment - where eligible individuals can apply a 50% CGT discount on assets held longer than twelve months - with a proposed post-reform framing that removes the flat discount, reduces the nominal gain by inflation (indexation), and then applies a 30% minimum-tax illustration. The examples are general and rely on the numbers you enter, not on any final legislation.
When would the CGT reform start?
These examples use a reform commencement of 1 July 2027. Sales before that date are shown under the existing 50% discount model, while gains accruing on or after it are shown under the proposed indexation-plus-minimum-tax model. An asset held across the date is split into a pre-reform portion and a post-reform portion.
How does the indexation method differ from the 50% CGT discount?
The 50% discount simply halves your nominal capital gain before tax, regardless of how much of that gain is real growth versus inflation. The indexation method instead subtracts an inflation adjustment from the nominal gain, so only the real (above-inflation) gain is taxed. When inflation is high relative to the gain, indexation can leave little or no taxable gain; when inflation is low, the older 50% discount is often more generous.
Are new residential builds treated differently under the reform?
The examples include a new residential housing carve-out that lets you compare an eligible new build under both the legacy 50% discount model and the post-reform indexation model side by side, using the same figures. The carve-out comparison only appears once you confirm the property is an eligible new build. It is intended to illustrate the policy flexibility discussed for new housing supply, not to determine eligibility.
Is this CGT reform tool tax or financial advice?
No. This page is for self-study and education only. The scenarios use simplified assumptions and the values you enter, and they ignore many real-world factors such as trust or joint ownership, foreign residency, capital losses from other assets, and the final form of any legislation. Check the enacted rules and consult a licensed accountant or adviser for your own situation.