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ARTICLE · 23 JULY 2026

Budget Article

Herbert Smith Freehills Kramer LLP
Herbert Smith Freehills Kramer LLP
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Herbert Smith Freehills Kramer LLP

Herbert Smith Freehills Kramer LLP

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The 2026–27 Budget's capital gains tax (CGT) reforms are the most significant recalibration of the investor tax base in 25 years. For gains accruing from 1 July 2027, the 50 per cent CGT discount available...

AustraliaTax
Toby Eggleston
Toby Eggleston
Ryan Leslie
Ryan Leslie
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Introduction

The 2026–27 Budget's capital gains tax (CGT) reforms are the most significant recalibration of the investor tax base in 25 years. For gains accruing from 1 July 2027, the 50 per cent CGT discount available to individuals, trusts and partnerships is removed and replaced by two mechanisms working together: cost base indexation, so that only the "real" (post-inflation) gain is taxed, and a 30 per cent minimum tax rate on capital gains. It also brings assets acquired before the CGT regime into the Australian net with effect from 1 July 2027.

The legislation to give effect to this received Royal Assent on 26 June 2026. While there is on-going consultation, the Government's proposed start-up concession offers little to mid-market private equity.

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