By Varun Agarwal, co-founder of PropRetire · Published 13 Nov 2026 · Law as read 13 Nov 2026 · 3 min read

What should accountants check for the 1 July 2027 CGT changes?

Whether the deemed sale reaches each asset a client holds across 30 June 2027, what sets its gain to that date, when the choice is due, who the 30% minimum tax reaches and how held rental losses meet the gain.

For example, a client's shares cost $40,000 and are worth $55,000 just before 1 July 2027. They are taken to be sold for $55,000 then and bought back for the same, and the $15,000 gain to then waits for the real sale.

An Australian resident individual's asset held from before 1 July 2027 to the end of 30 June 2027, and still held when a later sale or other realisation event happens, under section 112-155(1) of the Income Tax Assessment Act 1997. A trust's assets have the same rule in section 112-165.

It leaves out a pre-CGT asset, which has its own rule in section 112-175, a foreign or temporary resident's gain under section 115-105, and a new residential dwelling or affordable housing under sections 115-102 and 115-125.

The asset's "market value just before 1 July 2027", under section 112-155(3)(a), unless the client chooses an apportioning method under section 112-185.

That method is for the Minister to make "by legislative instrument". None was on the Federal Register of Legislation when this was read on 13 November 2026, so for now the market value is the one figure the law names.

At the real sale, not in 2027. The note to section 112-155(4) says "you do not have to make a choice until the day you lodge your income tax return for the income year in which the realisation event happens".

It is set aside until the year of the sale, under section 112-160. Whether it is a discount capital gain is judged as if the 2027 sale happened on the day of the real one, and the note to section 112-160(3) says "the 50% discount mentioned in paragraph 115-100(aa) can apply to your deferred gain". A loss to 30 June 2027 waits for the sale year in the same way.

The part from 1 July 2027 is worked out with an indexed cost base, under section 110-36(1A). Cost base indexation and the 30% minimum tax works one sale through.

Australian resident individuals, on gains from CGT events from 1 July 2027, under Division 119. Section 119-5(2) counts the gain after that date, and section 102-6 keeps the deferred gain to 30 June 2027 out of it.

Section 119-15 leaves out anyone paid, at any time in the year, a listed payment such as the age pension, a carer payment, the disability support pension, JobSeeker Payment or family tax benefit. A new residential dwelling's gain sits outside it as well.

From 2027-28, where a client's costs on homes outside the exceptions, taken together, are more than their rent, the excess is held over, not claimed, under section 26-155(1). In the method statement in section 102-5(1), steps 3 and 4 take what is held off the client's residential capital gains, the deferred gain first, and what is left carries on to the next year.

The exceptions are a home last acquired before 7.30 pm Canberra time on 12 May 2026 and a new residential dwelling, in section 26-155(2). Sections 26-156 to 26-158 carry that status to a client who takes over a home when a spouse or co-owner dies, or after a relationship ends. Does the negative gearing change apply to property you own? covers the contract date.

For each asset held across 30 June 2027, the contract with its date, the cost base records, and a market value at that date. For each rental, each year's schedule from 2027-28, with any loss held over.

How a firm gathers those from every property client at once is on the page for accountants.