If you own shares, managed funds or an investment property, there are some important tax changes on the horizon.
While the new rules aren't due to start until 1 July 2027, they could affect the amount of tax some people pay on investment gains and the treatment of property losses in the future. You don't need to understand every technical detail now, but being aware of the changes may help you understand whether they're relevant to you.
Changes to tax on investment gains.
One of the biggest changes affects capital gains tax (CGT).
Many people will already be familiar with CGT, which generally applies when an investment is sold for more than it was purchased for.
Under the current rules, people who have owned an investment for at least 12 months can generally reduce the taxable gain by 50%. Tax is then paid at their personal tax rate.
From 1 July 2027, gains made from that date will be adjusted for inflation and a minimum tax rate of 30% will apply, with certain exceptions.
For some people, this may result in more tax being payable when an investment is sold.
CGT changes at a glance
|
|
Gains up to 30 June 2027 |
Gains from 1 July 2027* |
|
Taxable amount |
50% of the gain (if held for at least 12 months) |
100% of the gain, adjusted for inflation |
|
Tax rate |
Personal marginal tax rate |
Personal marginal tax rate, subject to minimum 30% rate* |
*Exceptions may apply.
Changes to negative gearing.
Property investors may also be interested in changes to negative gearing.
Under the current rules, losses from an investment property can generally be used to reduce other taxable income, such as salary or wages.
From 1 July 2027, losses from existing residential investment properties acquired after the Federal Budget announcement on 12 May 2026 will generally only be offset against income and capital gains from residential property.
Properties purchased before the Budget announcement, as well as newly built residential properties, will continue to receive the current treatment.
What this could mean for you.
If you own shares, managed funds or investment properties, it may be worth considering:
How might these tax changes affect my current investments?
- Which of my investments could be affected by the new rules?
- Is my current investment strategy still appropriate for my circumstances?
Your investment records can help you identify what assets you hold and when they were purchased.
If you'd like to explore these questions further, a Bridges Financial Planner, can help explain how the new rules may apply to your circumstances. Please fill out the Financial Wellbeing Enquiry Form or email fwcd@beyondbank.com.au and we’ll be in touch.
You can also find out more through Beyond Bank or visit the Bridges section of the Beyond Bank website.
This article is prepared by Bridges Financial Services Pty Ltd ABN 60 003 474 977, AFSL 240837 (Bridges).
The information in this article is general in nature and does not take your personal circumstances, needs or objectives into account. Before making any financial decision, you should consider your own circumstances and seek professional advice where appropriate. The information reflects our understanding of legislation and related matters at the date of publication and may change. While care has been taken in preparing the content, no liability is accepted for any errors or omissions in this communication, and/or losses or liabilities arising from reliance on this article.
Bridges has an arrangement in place to pay a referral fee to Beyond Bank when they refer new clients to Bridges. Refer to www.bridges.com.au/wdi-fsg for further details.
