30 June 2027 tax changes: what's law, what's proposed and what to do

The 2026–27 Federal Budget, delivered on 12 May 2026, announced the largest change to how Australians are taxed on investments in a generation. Most of it is now law. Some of it is not. The difference matters, because acting on a proposal that later changes can cost you stamp duty and CGT you never needed to pay.

This guide is the map. It sets out exactly what has passed, what is still before Parliament, when each change starts, who it affects and the three choices every investor, business owner and trustee should make before 30 June 2027. Each topic links to a detailed guide.

Status is as at 18 October 2026.

What tax changes happen on 30 June 2027 and 1 July 2027?

Five headline changes start on 1 July 2027. All five are in the Treasury Laws Amendment (Tax Reform No. 1) Act 2026, which received Royal Assent on 26 June 2026.

1. The 50% CGT discount ends for future growth. For resident individuals, trusts and partnerships, growth from 1 July 2027 is taxed using cost base indexation (your cost is adjusted for inflation) instead of the 50% discount. Growth up to 1 July 2027 keeps the 50% discount. Our guide to the CGT discount changes explains the maths.
2. A 30% minimum tax on capital gains. Resident individuals pay at least 30% on post-1 July 2027 capital gains, with an exemption for people receiving certain government payments such as the Age Pension. See the 30% minimum tax on capital gains.
3. Pre-CGT assets enter the net. Assets bought before 20 September 1985 stay tax-free on growth up to 1 July 2027, but growth after that is taxable. See pre-CGT assets and the 2027 changes.
4. Negative gearing is limited. For established residential property acquired after 7.30 pm (Canberra time) on 12 May 2026, net rental losses from 1 July 2027 can only be used against residential property income and gains, not your salary or business income. See the negative gearing changes.
5. Everyone gets a deemed sale. Every CGT asset you hold is treated as sold just before 1 July 2027 and bought back on 1 July 2027. No tax is payable then. The gain is worked out and deferred until you actually sell. This is why "30 June 2027" keeps coming up: the value of your assets at that moment matters.

Key point: You don't have to sell anything to keep the 50% discount on growth up to 1 July 2027. The law does that for you. What you need is evidence of what each asset was worth at that date.

What is already law and what is still a Bill?

This is the table to keep. It's the one most commentary gets wrong.

The Tax Reform No. 2 Act 2026 received Royal Assent on 26 August 2026. The Tax Reform No. 3 Bill was introduced on 14 October 2026. Until it passes both Houses and receives Royal Assent, it is a proposal and can change.

Two unrelated changes also land in this window and catch people out: Payday Super started on 1 July 2026, and the 16% tax bracket, already cut to 15% for 2026–27, falls to 14% from 1 July 2027 under earlier legislation.

Which rules apply to an asset I already own?

It depends on when you bought it. The law splits each asset's gain at 1 July 2027, so one sale can be taxed under two sets of rules.

Three practical points sit behind the table.

• The 12-month rule still applies, counted to the sale. Buy shares in March 2027, sell in May 2028, and you've held them more than 12 months. The growth to 1 July 2027 can still get the 50% discount and the later growth gets indexation, even though you held them for only a few months before the change.
• New residential dwellings get a choice. For a new home, or one used for affordable housing, you can choose to keep the current 50% discount rules. The exact definition of "new residential dwelling" is still being finalised, so don't buy on the strength of it yet.
• Your 2026–27 return doesn't change. You don't report the deemed sale or the 1 July 2027 value in your 2026–27 return. The first return that can be affected is 2027–28, and only if you sell (or another CGT event happens) in that year. The value matters when you eventually sell, which is why the evidence needs to be gathered now. The ATO's capital gains tax reform page sets out the same split.

What isn't changing: what counts as a CGT asset, the list of CGT events, and the main residence exemption.

What is the timeline to 1 July 2028?

Who is affected by the 2027 tax changes?

Most people with investments outside super are affected in some way. Here's who should pay closest attention.

Who isn't affected by the discount change: companies (they never had the discount) and complying super funds (they keep their one-third discount), although pre-CGT assets they hold are still caught. Your main residence exemption is unchanged. Commercial property and shares are untouched by the negative gearing changes.

What should I do before 30 June 2027?

Every asset and every entity in your family group falls into one of three buckets. Sorting them is most of the work.

1. Keep holding and document the value (the snapshot)

If an asset is in the right structure and you plan to keep it, do nothing dramatic. The deemed sale locks in the 50% discount on growth to 1 July 2027 and defers the tax until you sell. What you need is proof of value at that date: closing prices for listed shares, a valuation for property, unlisted shares and business interests. You can choose later, when you sell, between that market value and an apportionment method the Minister is yet to set. Evidence gathered now keeps both options open.

2. Restructure before 30 June 2027 (the active restructure)

If an asset sits in the wrong place, this is the year to move it. A business owner holding commercial property or a share portfolio in their own name, a sole trader exposed to personal liability, a professional with investments in their own name: moving the asset into a company, family trust or super fund triggers CGT and usually stamp duty. Doing it before 30 June 2027 lets you use the 50% discount, and possibly the small business CGT concessions, to cut that cost, so all future growth sits in the better structure. The numbers decide this, not the deadline. Our business restructuring team models the stay-put cost against the move-now cost, including duty.

3. Watch and hold (the trust question)

The proposed 30% minimum tax on discretionary trusts is a Bill. Don't wind up or restructure a family trust because of it yet. Restructuring early can trigger CGT and duty, and the Bill proposes a three-year rollover window and an election that may make restructuring unnecessary. Model it now. Act once the law is known.

What does this look like for a real family?

Hypothetical, rounded figures.

Say a couple, both 58, run an engineering consultancy through a company. They also own:

• a share portfolio in the husband's name, bought in 2015 for $300,000 and now worth $700,000;
• a rental unit in joint names, bought in 2019, established, positively geared;
• a family trust that owns the shares in the company and distributes to them and their adult children;
• a holiday house the wife inherited from her father, who bought it in 1982.

Here's how we'd sort it.

Our federal budget impact agent maps each measure against a client's assets and entities and flags status and next steps. A qualified accountant reviews every flag and decides what actually goes to the client. The AI drafts; your accountant signs off.

What mistakes are people making about the 2027 changes?

• Selling to "beat" the change. The law already protects pre-2027 growth. Selling just brings the tax forward and costs you transaction fees.
• Treating the trust tax as law. It isn't. Some commentary is already talking about wind-ups. A wind-up can't be undone if the Bill changes.
• Forgetting stamp duty. The CGT rollover in the Bill is federal. State duty is a separate cost and can be the biggest number in any restructure. See our page on state taxes.
• Missing the valuation. Without evidence of value at 1 July 2027 you lose the ability to compare market value with apportionment. Property valuations are hard to reconstruct years later.
• Assuming the minimum tax only hits the wealthy. It mainly hits people on lower incomes in the year of sale: retirees not on a pension, people between jobs, students.
• Restructuring without checking solvency and records. Moving assets between family entities can be undone in bankruptcy if the transferor was insolvent, and the law presumes insolvency where proper books weren't kept. Get your financial statements up to date first.

Where does a solicitor or financial adviser come in?

We do the tax and accounting: identifying what's affected, modelling the numbers, valuations briefs, tax returns and trust resolutions. A solicitor prepares any legal document, including transfer contracts, trust deed variations, wills and binding death benefit nominations. A licensed financial adviser gives any advice about setting up, contributing to or winding up an SMSF. We brief both and work alongside them. Our full list of 41 strategies before 30 June 2027 marks who does what.

The fastest way to start is our 30 June 2027 checklist. Work through it, then send us what you've gathered. Our tax planning service covers the modelling and the decisions.

General information only, current as at 18 October 2026. It is not personal tax, legal or financial product advice and doesn't take your circumstances into account. Talk to us before you act. Where a recommendation needs a licensed financial adviser or a solicitor, we work alongside them.