How to Minimise Capital Gains Tax Changes in 2026 & Beyond

The budget capital gains tax changes and how to minimise the impact  on your investments.

Don’t you hate when the goal posts are moved on you.  Well, the goal posts have moved significantly for those of us who are investing or planning on investing, due to the capital gains tax changes that are now legislated. 

These changes create an uneven playing field.  The changes impact investments and investment structures in different ways. How will they impact you?

These changes will: 

• Increase the capital gains tax most investors will pay.  It is clearly a revenue raising measure by the Government. 
• Change capital gains tax from being simple, to being complex. While complex creates headaches it does also provide planning opportunities 
• Capital losses do not provide as much tax benefit as before.
• The legal structure you invest in now makes an even bigger difference. 

What are the changes in a nutshell: 

• Removal of the 50% discount from capital gains made after 1 July 2027 on most investments.   
• Capital gains assets that straddle 1 July 2027 will have the 50% discount up until then.  Any capital gain from July 2027 will only be reduced by a CPI indexed percentage.  To retain the 50% discount a valuation as of 1 July 2027 is required. 
• Exceptions to these changes are new residential dwellings and investments inside superannuation. 
• After 1 July 2027 a minimum tax rate of 30% will apply on capital gains, irrespective of how much the index reduces the gain. 
• Pre-CGT assets will now be taxed in the same way as other assets, with CGT payable on the increased value from 1 July 2027, less indexation. 

How can investors minimise the impact of capital gains tax changes?

There is no universal strategy that eliminates CGT. However, investors can often reduce avoidable tax or improve the after-tax result through good advice and planning.

1. Record the value of your assets at 1 July 2027.

This will lock in the 50% discount that exists under the old legislation.  The more of the gain that occurs before the 1 July 2027 the less tax you will pay.

2. Not sell your assets

Capital gains only applies when you sell an asset.  It is easier to hold onto an investment when the asset when it generates good income.

3. Have investments that generate good income with tax benefits

A better strategy would be to have investments that generate good income, especially if that income is sheltered by franking credits from shares or deferred taxes from tradeable trusts. Higher income investments generally have lower capital gains as the more of the profits are paid out regularly to investors.  These investments can be held directly or in Exchange Traded Funds (ETF's). 

4. Use  ETF's to maximise the benefit from capital losses

Capital losses are impacted by this uneven playing field. Losses do not offset gains as much as they used to.  Indexation is applied to the cost base on the assets that you had a capital gain on, but losses do not receive indexation. So over time the benefit of a capital loss declines.

This will impact those of us who do direct investing who may have losses and gains in a year.

The Australian Financial Review on 22 May 2026 estimated that the extra tax due to the treatment of losses could lead to investors paying 50% more tax than was estimated by Treasury in the budget. 

A solution to poor treatment of losses is to invest in ETF’s (Exchanged Traded Funds).  These are a basket of investments pooled together in the ETF, that can be traded on the stock market like shares. 

If some of the investments have a loss in the ETF those losses can be fully offset against the gain. The capital gain is applied only to the net amount.

In an ETF or a listed investment Trust capital losses have the full benefit they have under previous capital gains tax regime.   

5. Purchase new residential property as an investment, rather than an existing residential property

 New residential property will retain the 50% capital gains tax exemption and negative gearing.  Being new you should also receive a generous depreciation deduction.  However, with property prices falling, care needs to be taken when you do this.  

Before buying a new investment, consider how it fits with your personal circumstances and long-term plan. Coordinating financial planning, taxation insight and superannuation advice can help prevent one decision from creating problems elsewhere.

6. Superannuation



The big area untouched by these CGT changes is superannuation. This makes super an even better tax structure than it was before. However, capital gains tax is not the same in all super funds. Our next blog on Capital Gains tax will tell what types of super funds are best for lower capital gains tax.

What should share and managed fund investors check?

A practical capital gains tax review checklist

Before acting, prepare the following information:

1. A list of investments, ownership structures and acquisition dates.
2. Estimated current values and likely sale costs.
3. Original purchase records and adjusted cost bases.
4. Capital losses carried forward from earlier years.
5. Expected income for the current and next financial years.
6. Your reason for considering a sale and the desired use of proceeds.

Take this information to your accountant and financial adviser. Tax advice can determine the likely liability, while financial advice can test whether the proposed sale, reinvestment or restructure is suitable for your goals.

Common mistakes to avoid

Selling in a hurry

A rushed sale may crystallise tax and transaction costs without improving your long-term position. Prepare an estimate before making an irreversible decision.

Ignoring the cost base

Incomplete records can lead to an overstated gain. Search for settlement statements, invoices, broker reports and distribution statements before calculating the result.

Choosing an investment only for tax reasons

Tax is one factor, not the entire investment case. Risk, diversification, income, liquidity and future objectives should remain central.

Assuming every rule applies universally

CGT treatment can differ for individuals, companies, trusts, superannuation funds and joint owners. Personal circumstances matter.

Leaving planning until sale time

The most useful choices are often made before acquisition or well before disposal. Early advice provides more options and time to verify records.

What should investors do next?

Capital gains tax changes make proactive planning more important, particularly for homeowners and investors with significant unrealised gains. Begin by reviewing your asset register, cost-base records, ownership structures, available losses and likely income for the relevant financial years. Then test any proposed sale against your investment objectives—not tax alone.



Ambrosiussen Holistic Advisors provides personalised guidance across financial planning, investments and their tax implications,  superannuation and long-term wealth decisions. You can contact the team to discuss your situation.

Frequently asked questions

Is capital gains tax a separate tax?

Yes and No. The capital gain is calculated separately and then the net capital gain is included in your assessable income and taxed at the applicable marginal rate.  However most capital gains will be taxed at least 30% irrespective of your marginal tax rate

Can I avoid capital gains tax by holding an investment?

No, but you can defer it. Capital gains only occurs when you dispose of an asset. Holding an investment does not remove a future tax obligation. It may defer the taxing event, but the asset should still be assessed for suitability, risk and long-term objectives.

Should I sell before the capital gains tax changes apply?

Not necessarily. The 50% discount on gains up to 30 June 2027 stay in place.  It is only gains that occur from 1 July 2027 that are subject to the new capital gains tax laws. The right decision depends on the relevant part of the legislation for your asset and structure.  Also consideration needs to be given to expected gain, income, losses, investment objectives and transaction costs. Obtain advice before acting.

Who can help calculate my likely liability?

A qualified accountant or registered tax adviser can assess the tax calculation. A financial adviser can help determine how the decision fits your wider financial plan. For tailored guidance, start with our resources or contact page .

GENERAL ADVICE WARNING:

The advice provided is general advice only. In preparing it we did not take into account your investment objectives, financial situation, or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.