How your investments are affected by CGT changes | The Business | ABC NEWS

In what's been dubbed the budget with the 'most significant tax changes in more than a quarter of a century', the federal government has made changes to the capital gains tax (CGT) discount and negative gearing.
From 1 July 2027, the government will scrap the 50 per cent tax discount on capital gains for all assets except those in superannuation. That includes shares.
The CGT discount will return to the policy of 1999, where only 'real' gains above inflation are taxed at a minimum rate of 30 per cent. But gains accrued prior to next year will retain the 50 per cent discount.
Investment fund founder Chris Brychi worries the changes could hurt aspiring homeowners, who are buying speculative shares to save for a deposit. But he says it is "still possible in a diversified portfolio".

The capital gains tax changes also apply to property investors, except those buying new homes to boost supply. Other reforms include changes to negative gearing. From 1 July 2027, negative gearing is limited to new properties, existing investments are grandfathered except those bought after 7.30pm on May 12.
Domain's chief of research Nicola Powell says she worries vacancy rates could plummet following an exodus of investors and that could hurt renters.
But the government says the tax changes are about intergenerational fairness. It says it's working with the states and territories to support renters and the reforms will help around 75,000 more Australians get a foot on the property ladder over the next decade.
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Read more here: https://www.abc.net.au/news/2026-05-12/budget-2026-share-market-investors-cgt-changes-small-business/106669784

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