New CGT Rules for
Australian Share Investors
The 50% CGT discount is gone for new share positions from 1 July 2027. Your portfolio's era of purchase determines which tax rules apply.
▶ Watch the video explainer →The Three Eras of Share Portfolios
Pre-1985 (Pre-CGT)
Assets held since before 20 Sept 1985 lose their 42-year CGT exemption. Cost bases reset via ATO market valuation on 1 July 2027.
Grandfathered Shares
Shares bought before 1 July 2027. Old 50% discount applies to gains up to June 2027. New CPI indexation applies to gains after that date.
Post-July 2027 Buys
Zero 50% discount. Gains adjusted for CPI inflation only. Hard 30% minimum tax floor on all net capital gains.
Note: Margin lending interest deductions remain fully deductible against ordinary income under all pathways.
Side-by-Side: $100,000 Profit on a Share Sale
The Strategic Shift — Franked Dividend Yield
Growth Stocks Lose Appeal
With the 30% minimum floor, high-growth compounders become far less attractive. The asymmetric tax benefit of patient long-term capital is eliminated.
Franked Dividends Rule Supreme
Cash dividend streams are untouched by these changes. Australian franked dividends averaging 4% yield with 100% franking credits remain highly tax-effective and bypass CGT entirely.
Market context: ASX blue chips average 4% yield vs 1.1% on the US S&P 500.
Compare your CGT bill old vs new rules
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Is the 50% discount really gone for everyone?