- From 1 July 2027 the 50% CGT discount is replaced by cost base indexation and a minimum 30% tax on certain capital gains.
- The change affects Australian resident individuals, trusts and partnerships. Companies never had the discount, so that part does not change for them.
- Assets held at the end of 30 June 2027 are generally treated as sold and bought back at that date, so the gain can be split into a before and after part.
- The split uses market value at 30 June 2027 or an apportioning method. A valuation may be useful, but it is not required.
- Your accountant or tax adviser decides whether and how the rules apply to you.
What changes on 1 July 2027
Under the current rules, an individual or trust that sells an asset held for at least 12 months can usually reduce the capital gain by 50%. That is the CGT discount.
From 1 July 2027 the discount is replaced for gains that build up from that date. In its place:
- Cost base indexation. The amount you paid for the asset (the cost base) is adjusted for inflation using the consumer price index before the gain is worked out.
- A minimum 30% tax. A minimum 30% tax applies to certain capital gains that build up from 1 July 2027.
The ATO says these measures are now law. They change how a gain is worked out. Your accountant can tell you how they affect your own assets.
Who is affected, and who is not
The discount change reaches individuals, trusts and partnerships. The 30% minimum tax applies to Australian resident individuals, including individuals who receive gains from a trust or partnership. In short, the change applies to:
- individuals
- trusts
- partnerships (CGT is worked out by each partner on their share)
Companies are not affected by the discount change. A company never had the 50% discount, and it does not get indexation now. That does not mean a company owner can ignore the change. If you hold shares in a private company personally, or through a family trust, those shares are assets of yours or of the trust, and the new rules can apply to them. See companies and the 2027 CGT changes.
The rule for assets bought before 20 September 1985 is separate and can apply to any owner, including a company.
What happens to gains made up to 30 June 2027
The new rules only apply to growth from 1 July 2027. Growth before that date keeps the old treatment, including the 50% discount, when the asset is eventually sold.
To separate the two periods, an asset you hold at the end of 30 June 2027 is generally treated as sold just before 1 July 2027 and bought back on 1 July 2027. You then have two parts to the gain:
- Before. From what you paid up to the value at 30 June 2027. The old rules apply to this part.
- After. From the value at 1 July 2027 up to the eventual sale price. Indexation and the minimum tax apply to this part.
Nothing is payable on 30 June 2027. The gain or loss from the deemed sale is deferred until you actually sell, gift or transfer the asset, or another CGT event happens. For most people, the first tax return that could be affected is the 2027 to 28 return, and only if a CGT event happens that year.
Assets bought before 20 September 1985 (pre-CGT assets) are also brought into the system. Growth up to 30 June 2027 stays exempt. Growth from 1 July 2027 is taxed.
Where a valuation fits
The amount used for the deemed sale at 30 June 2027 is either:
- the asset's market value just before 1 July 2027, or
- an amount worked out under an apportioning method set by the government.
The ATO said in October 2026 that the apportioning method was still being developed. The choice between the two is made later, with the tax return for the year the asset is actually sold.
So a valuation is not required. It may be useful where the value of a private business, or shares or units in one, at 30 June 2027 matters to how the gain is split. A private business has no share price to look up, and proving its value years later is harder without evidence from the time. Read more on market value or apportioning.
We value. We do not give tax advice. Your accountant or tax adviser decides whether the rules apply to you, and which method suits you.
The small business CGT concessions
The four small business CGT concessions stay. One threshold moves: from the income year that includes 1 July 2027, the 50% active asset reduction needs only aggregated turnover under $10 million. The other concessions keep the $2 million turnover test or the $6 million maximum net asset value test. Whether you qualify is a question for your adviser.
What the valuation report covers for this purpose
A valuation for the 2027 change sets out:
- the business, shares, units or interest being valued, and who owns it
- the valuation date: 30 June 2027 (just before 1 July 2027)
- the purpose: the deemed sale and reacquisition under the new CGT rules
- market value as the standard of value, the method used and a cross-check
- the earnings, adjustments and evidence relied on, all as known or reasonably foreseeable at the date
- assumptions, limitations, and the signature of the valuer responsible
See what a 30 June 2027 valuation covers.
What we need from you
- what is being valued, and the ownership structure
- financial statements for the years leading up to 30 June 2027, and the year ending on that date
- management accounts and a balance sheet at 30 June 2027
- the commercial picture at the time: main customers, contracts, pipeline, staff and any known risks
Start keeping these records now. The valuation itself is done after the date.
Get a fixed fee
Our fee is fixed by the annual revenue of the business, from $1,495 + GST for revenue under $1 million. For a 30 June 2027 valuation you can book and pay now at 10% off, and we value after the date. See the 30 June 2027 valuation page or choose your revenue band below.
General information only, current at 10 November 2026. We value businesses and business interests; we do not give tax advice. Your accountant or tax adviser decides whether a rule applies to you.