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CGT Reform — What-If Calculator

Draft legislation

From 1 July 2027, the 50% CGT discount is replaced by a CPI-indexed cost base with a 30% minimum tax. Adjust the details below and click any year on the chart to see how your after-tax proceeds change depending on when you sell.

Asset details

Asset type
Year purchased
Cost base (purchase price)
$
Current estimated value

Optional — rebases projections from today

$
Future growth rate

Applied from today's value onwards

% p.a.
Your marginal tax rate
Assumed CPI (inflation)

Used for post-2027 cost base indexation

%

Net after-tax proceeds by sale year

Projecting at 6% p.a. from cost base of $500,000 — hybrid rules after 1 Jul 2027 (amber zone)

$0k$531k$1.1M$1.6M$2.1MCost base1 Jul 20272024202720302033203620392042Net after taxSale valueTaxNet gain

Tap a dot to see the full breakdown below

Breakdown — sell in

Current rules

Projected sale value

$796,924

Cost base (purchase price)

$500,000

Total gross gain

$296,924

50% CGT discount (held 8 yrs)

−$148,462

Taxable gain

$148,462

Tax at marginal rate

−$44,539

Net proceeds after tax

$752,385

Results by sale year

YearSale valueGross gainTaxNet proceedsRules
2024$709k$209k$31k$678kCurrent
2025$752k$252k$38k$714kCurrent
2026$797k$297k$45k$752kCurrent
2027reform$845k$345k$52k$793kHybrid
2028$895k$395k$61k$835kHybrid
2029$949k$449k$70k$879kHybrid
2030$1.0M$506k$81k$925kHybrid
2031$1.1M$566k$92k$975kHybrid
2032$1.1M$630k$104k$1.0MHybrid
2033$1.2M$698k$117k$1.1MHybrid
2034$1.3M$770k$132k$1.1MHybrid
2035$1.3M$846k$147k$1.2MHybrid
2036$1.4M$927k$163k$1.3MHybrid
2037$1.5M$1.0M$181k$1.3MHybrid
2038$1.6M$1.1M$200k$1.4MHybrid
2039$1.7M$1.2M$221k$1.5MHybrid
2040$1.8M$1.3M$243k$1.6MHybrid
2041$1.9M$1.4M$267k$1.6MHybrid
2042$2.0M$1.5M$292k$1.7MHybrid

Click any row to see the full tax breakdown above. A double border marks the point where CGT rules change.

Key changes from 1 July 2027 (draft)

  • Sell before 1 Jul 2027: existing 50% discount applies to the full gain
  • Existing asset, sell after 1 Jul 2027: 50% discount on pre-2027 gain + CPI indexation on post-2027 gain
  • New asset (bought after 1 Jul 2027): CPI indexation and 30% min tax from day one
  • 30% minimum tax on post-2027 gains — income support recipients are exempt
  • PPOR, small business concessions, super funds, affordable housing: unaffected
  • New residential builds: can choose 50% discount or new CPI rules

About the CGT reform

What changes on 1 July 2027?

The flat 50% CGT discount is replaced by a CPI-indexed cost base — you only pay tax on the "real" gain above inflation. But a 30% minimum tax applies to these gains regardless of your marginal rate (income support recipients are exempt).

I already own shares or property — does this affect me when I sell after 2027?

Yes, under a hybrid arrangement. The gain you made up to 1 July 2027 still gets the 50% discount. Only gains accruing after that date are subject to CPI indexation and the 30% minimum. The chart above shows this split automatically based on the growth rate you enter.

Is it always better to sell before July 2027?

Not necessarily. For high-growth assets, the 50% discount typically beats CPI indexation — meaning the post-reform tax on your post-2027 gains can be higher. But for assets with modest growth held over many years, CPI indexation may remove more of the taxable gain. Your chart shows the real trade-off for your specific numbers.

What is the 30% minimum tax?

Post-2027 gains are taxed at the higher of your marginal rate or 30%. So even someone in the 16% bracket pays at least 30% on post-reform gains. Income support recipients (Age Pensioners, etc.) are exempt from this floor.

Is this law yet?

2026–27 Federal Budget announcement — draft legislation, not yet passed Parliament. The government has signalled a 1 July 2027 start date. Details may still change. Consult a registered tax agent for personalised advice.

Model CGT across your full portfolio

See how asset timing, CGT reform, and CPI indexation interact across your shares, property, and super — year by year in the full Wealth Forecaster.

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