2027 CGT Reform Calculator — Outback Investor
🇦🇺 Budget 2026-27 · Effective 1 July 2027

The 50% CGT discount is changing.
See exactly what it costs you.

Real ATO CPI data. Correct transitional rules. Model your investment property or shares under the 2027 indexation regime in under a minute.

CPI data: ATO.gov.au
Source: Budget 2026-27 · Treasury
Free, no sign-up
Updated May 2026
Budget 2026-27

Five key changes in the reform package

When
1 Jul 2027
New CGT rules start. Only gains accruing after this date are affected.
Mechanism
CPI Indexation
50% discount replaced with cost base uplifted by CPI. Only real gains taxed.
Floor Rate
30% Min Tax
Minimum 30% applies to real post-2027 gains. Doesn't affect those already above 30%.
Gearing
New Builds Only
Negative gearing restricted to new builds. Holdings before 12 May 2026 grandfathered.
Tax Cuts
$250 WATO
New Working Australians Tax Offset from FY2027-28. Plus $1,000 instant work deduction.
Free Tool

2027 CGT Reform Calculator

Fill in your details and results update in real time. Uses the ATO apportionment formula and actual ATO CPI index data.

1 Asset type
Established properties held before 12 May 2026 are grandfathered for negative gearing. CGT transitional rules apply if purchased before 1 Jul 2027.
2 Purchase & sale details
Or use the estimator in step 4 below to project this.
3 Your tax situation
Wages, salary and other taxable income before adding the capital gain.
Only known legislated brackets are listed. Future years use FY2027-28 brackets until further legislation.
4 Sale price estimator (optional) Project future value

Don't know what your asset will be worth at sale? Use historical average growth to project a sale price, or enter your own assumption.

7.0%
AU residential property avg (last 20yr)
5 CPI / inflation assumption Real ATO data

CPI is applied as compound annual inflation across the entire holding period. A 4.5% rate over 20 years means cost base × 1.045²⁰ = +141%.

10-yr average FY2016–FY2025
2.82%
Latest (FY2025)
2.09%
Annual CPI — financial year % change (ATO.gov.au)
Auto mode uses the 10-yr historical average compounded over your holding period.
Effective rate applied: 2.82% p.a. compounded
⚠️ Future CPI is unknown. The 10-year average (2.82%) includes the post-COVID spike (FY2022: 6.15%, FY2023: 6.03%). RBA target is 2–3%. Always consult a registered tax adviser before making investment decisions.
Your results
📊

Fill in your details and results appear here.

NG Negative gearing — how the 2027 rules affect your deduction
Interest + costs minus rent income = net annual loss
Current year deduction
From 1 Jul 2027
Tax saving now
Tax saving from 2027
Select your purchase date above to see which rules apply.
CPI CPI Calculator — what is a past dollar amount worth today?
Uses the CPI index ratio method: amount × current CPI ÷ original CPI. Earliest on-page year: 1995. The official RBA calculator extends back further for historical comparison.
Inflation-adjusted value
Enter an amount and years to estimate today’s equivalent buying power.
Cumulative inflation
Average p.a.
Price multiple
Example: $10,000 in 1995 is roughly in 2026 dollars using the annual CPI index snapshot built into this page. Source methodology: RBA inflation calculator notes and ABS CPI index data. For exact historical/quarterly values, use the official RBA Inflation Calculator.
What's changing

The 2027 CGT reform, explained simply

Six things every investor needs to understand before 1 July 2027.

📉

CPI indexation replaces the 50% discount

Your cost base is uplifted by inflation over the time held. Only the gain above CPI is taxed. This is how CGT worked between 1985 and 1999.

🔢

30% minimum tax on real gains

Even if your marginal rate is below 30%, a floor applies to real post-2027 gains. Doesn't affect most working investors already taxed above 30%.

🏗️

New builds: 50% or indexation — your choice

New build investors choose whichever method is lower at time of sale. New builds also retain full negative gearing regardless of purchase date.

⚖️

Transitional rules for existing owners

Assets bought before 1 Jul 2027 are split at that date using the ATO's apportionment formula. Pre-2027 gains use 50% discount; post-2027 gains use indexation.

🛡️

What's NOT changing

Main residence exemption, SMSFs and super funds, small business CGT concessions (all four retained), and the 60% affordable housing discount are all unaffected.

📅

When does it affect me?

Only when you sell after 1 Jul 2027. No impact on unrealised gains or properties you continue to hold. The tax is only realised at disposal.

Sources: Budget 2026-27 · Treasury · ATO

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