1 July 2027 is the most significant tax date for Australian individuals and investors in a decade. Three legislated changes start on that day and a fourth is proposed for a year later. Most people need to do nothing; some people need to decide things in the next eight months. This page separates the two.
The timeline
- 1 July 2026In force15% rate · $32,500 concessional cap · annual $270,830 super contribution base · Payday Super · $1,000 standard deduction
Already applying for the 2026–27 year.
- 30 June 2027DeadlineLast day of the 50% CGT discount era for new gains · last 2026–27 planning actions
Asset values at this date anchor the pre/post split; trust resolutions, super and prepayments for 2026–27 must be done.
- 1 July 2027Law14% rate on $18,201–$45,000 · CGT discount replaced by indexation + 30% minimum rate · negative gearing limited to new builds and pre-12-May-2026 holdings
Treasury Laws Amendment (Tax Reform No. 1) Act 2026 and the More Cost of Living Relief Act 2025.
- 1 July 2028Announced30% minimum tax on discretionary trusts (proposed)
Not yet legislated; detail and exemptions unknown. Review, don't restructure.
The 14% rate
The second step of the personal tax cuts: the rate on income between $18,201 and $45,000 falls from 15% to 14%. Everyone earning over $45,000 saves $268 a year; below that, proportionally less. It is automatic through PAYG withholding. The only planning point is a mild one — income that can legitimately fall into 2027–28 rather than 2026–27 is taxed a fraction lower.
| Taxable income | 2026–27 | 2027–28 |
|---|---|---|
| $0 – $18,200 | Nil | Nil |
| $18,201 – $45,000 | 15% | 14% |
| $45,001 – $135,000 | 30% | 30% |
| $135,001 – $190,000 | 37% | 37% |
| Over $190,000 | 45% | 45% |
The CGT discount is replaced
For individuals, trusts and partnerships, the 50% discount on gains from assets held over 12 months is replaced by cost base indexation (the cost base is uplifted by inflation, so only the real gain is taxed) together with a 30% minimum tax rate on the gain. The ATO states the new rules apply only to gains accruing after 1 July 2027; gains before that date keep the discount whenever you sell. Companies are unaffected; super funds keep their one-third discount; new-build property investors may choose between the two systems.
Who it hurts most: people in the 30% bracket or below holding assets that grow strongly after 2027 — under the discount they paid 15%–16% effective on a gain; under the new rules at least 30% on the post-inflation gain. Who it barely touches: people in the 45% bracket, who were already paying 22.5% on discounted gains and will pay 30%-plus on a smaller indexed gain; long-held assets whose growth happened before 2027; and anyone selling in a low-income year.
Decisions before 30 June 2027: establish the value of investment assets around that date (property valuation, share prices are automatic); bring forward a sale only where you intended to sell and your 2026–27 income is low; make sure the cost base of every asset is complete so the split can be calculated. See CGT on property and the 1 July 2027 property checklist.
Negative gearing
Losses on residential property offset wages and other income after 1 July 2027 only for new builds and for property held at 7:30 pm AEST on 12 May 2026. Other established property has its losses quarantined to residential property income and carried forward. Existing investors are protected; the decision is for anyone buying an established property from now on. The negative gearing explainer and calculator cover it.
Discretionary trusts: the proposed 30% minimum tax
The government has announced a 30% minimum tax on discretionary trust income from 1 July 2028. It is not law, no bill has been introduced, and the design — what counts, which beneficiaries or trusts are exempt, how franked income and capital gains are treated — is unknown. The sensible response is a review, not a restructure: what does the trust do for the family today, what would the measure cost if it passed as announced, what would moving to a company or individual ownership cost in CGT and stamp duty. We will update this page when a bill is published. The trust distributions guide covers the current rules.
Business settings for 2027–28
- Company tax stays at 25% for base rate entities; retaining profit in a company remains the main deferral tool, with Division 7A (8.77% benchmark for 2026–27, indexed each year) governing drawings.
- Instant asset write-off remains $20,000 for small business; large purchases are still better timed to the year with the higher marginal rate.
- Super guarantee stays at 12%; the concessional cap and the annual contribution base are indexed each July.
- Structure — the CGT change reduces the advantage of holding appreciating assets in an individual's or trust's name relative to a company for people in lower brackets, and the trust measure may change the calculus again in 2028. Structures chosen now should be able to adapt.
A planning sequence
- Now to March 2027: list every asset with its cost base; confirm property categories; review any trust; decide on any sale you were already considering.
- April to June 2027: the usual EOFY planning — super, prepayments, write-offs, resolutions — plus valuations around 30 June.
- July 2027 onward: record the 30 June values, run the CGT split on anything sold, and watch the trust legislation.
Sources
- ATO — Personal income tax — new tax cuts
- ATO — Tax reform: reforming negative gearing and capital gains tax
- Treasury — Budget 2026–27 tax measures
General information current at 30-10-2026. The CGT and negative gearing measures are law; their detailed operation depends on ATO guidance still being published. The trust measure is announced only. Not advice.
Frequently asked questions
What tax changes start on 1 July 2027?
Three are law. The 15% rate on income between $18,201 and $45,000 drops to 14%. The 50% CGT discount for individuals, trusts and partnerships is replaced by cost base indexation plus a 30% minimum tax rate, for gains accruing after that date. Negative gearing on residential property is limited to new builds and properties held at 7:30 pm on 12 May 2026. A 30% minimum tax on discretionary trusts from 1 July 2028 has been announced but is not yet law.
Is the CGT change retrospective?
No. The ATO states the new rules apply only to gains accruing after 1 July 2027. Gains built up before that keep the 50% discount whenever the asset is sold. That is why establishing the value of assets around 30 June 2027 matters.
Should I sell investments before 30 June 2027?
Not because of the date alone. Pre-2027 gains keep the discount regardless of when you sell. Selling early makes sense only where you intended to sell anyway and your income in 2026–27 is lower than it will be later, or where the asset is unlikely to grow. Transaction costs and the loss of future growth usually outweigh a rush.
What is the proposed 30% trust tax?
An announced measure, not yet legislated, under which income retained in or distributed from a discretionary trust would bear a minimum 30% tax from 1 July 2028. Until the law and its exemptions are published, the sensible step is to review whether a trust still suits the family's circumstances and what alternatives would cost to move to — not to restructure on a headline.
Does the 14% rate change anything for planning?
It is worth up to $268 a year to anyone earning over $45,000 and is automatic. For timing decisions it means income earned in 2027–28 is taxed slightly less than the same income in 2026–27, which is a small point in favour of deferring income where you can.
What stays the same?
The $18,200 tax-free threshold, the 30%, 37% and 45% bands, the 2% Medicare levy, the 12% super guarantee, the 25% base rate entity company tax rate, the $20,000 instant asset write-off and the GST rate. Super caps and the Medicare surcharge thresholds are indexed each year.