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2026-27 Budget Impact
See how the Federal Budget's CGT & negative gearing changes affect your investments
Enter your details and click Calculate Impact to see how the 2026-27 Budget affects your CGT liability.
The 2026-27 Federal Budget introduced two major changes affecting investors from 1 July 2027: the removal of the 50% CGT discount (replaced by inflation indexation) for assets acquired after 12 May 2026, and the restriction of negative gearing deductions for established investment properties purchased on or after that date.
This calculator shows the real-dollar impact under both old and new rules — for ETF investors comparing CGT liability, and for property investors comparing their annual tax savings and exit CGT.
For assets acquired after 12 May 2026, the 50% CGT discount is removed. Instead, only the portion of your gain above inflation (the "real" gain) is taxed — at a minimum rate of 30%. This is generally worse for high-growth assets but can be better for slow-growth ones where indexation absorbs most of the gain.
Indexation adjusts your original cost base upward by the inflation rate each year you hold the asset. Only gains above the inflated cost base are taxed. For example, if you paid $50,000 and inflation runs at 2% p.a., your indexed cost base grows to ~$61,000 after 10 years — only gains above that are taxable.
Only buyers of established (existing) investment properties on or after 12 May 2026. New builds are exempt — you retain full negative gearing. Properties you already own before 12 May 2026 are grandfathered under old rules. Shares and ETFs are completely unaffected by negative gearing changes.
No. All calculations run entirely in your browser. Your inputs are saved to your browser's local storage so the page remembers them on return visits. Nothing is transmitted to any server.
The 2026-27 Federal Budget introduced two significant changes for investors effective 1 July 2027. First, the 50% CGT discount is removed for assets acquired on or after 12 May 2026 — replaced by an inflation indexation method with a 30% minimum tax rate. Second, negative gearing deductions are restricted for established investment properties purchased on or after 12 May 2026. This budget impact calculator lets you model the exact dollar cost of both changes for your specific situation.
Select the ETF/Shares tab to model CGT changes, or the Investment Property tab for negative gearing impacts. Enter your income (to determine your marginal tax rate), your investment details, and your expected holding period. Click "Calculate Impact" to see a side-by-side comparison of your tax liability under old rules versus the new budget rules, including a chart showing how the gap changes over time.
No — assets you already own before 12 May 2026 are grandfathered. If you sell before 1 July 2027, the full 50% CGT discount applies as usual. If you hold past 1 July 2027, your gains are split at that date: growth up to 1 July 2027 retains the 50% discount, and growth after that date is taxed under the new indexation rules. This calculator handles that split automatically when you select "Before 12 May 2026" and enter your purchase date.
Yes. According to the Treasury factsheet, investors in newly built properties can choose either the 50% CGT discount or indexation — whichever results in lower tax. This calculator automatically applies the better method for your inputs. In high-growth scenarios indexation usually wins; in lower-growth or shorter-hold scenarios the 50% discount may produce a lower bill.
For established investment properties purchased on or after 12 May 2026, rental losses from year 2 onwards cannot be offset against your salary — they are quarantined and carried forward. The Treasury factsheet states these losses are only deductible against other income from residential properties, including capital gains.
This calculator models the single-property case: carried-forward losses are applied against future positive rental income from that same property (reducing the taxable amount), and any remaining balance reduces the taxable capital gain when you sell. If you hold multiple residential investment properties, you may also be able to apply those losses against income from your other properties — giving you more flexibility than this tool's single-property model shows.
Note: exactly how quarantined losses interact with the new 30% CGT minimum rate at exit is a legislative assumption pending final ATO guidance. This calculator treats them as reducing the indexed gain dollar-for-dollar before the tax rate is applied — the most defensible interpretation of the factsheet language.
Yes. The negative gearing restriction takes effect from 1 July 2027. If you buy an established property after 12 May 2026 but before 30 June 2027, your first year of losses is still fully deductible against your salary income — the quarantine only applies from year 2 (i.e. from 1 July 2027 onwards). This calculator reflects that transitional rule automatically.
Calculations are based on the official Treasury factsheet: Negative Gearing and Capital Gains Tax Reform, published by the Australian Government in May 2026. The worked examples in that document (Jane, Zoe, Michael) were used to verify this calculator's outputs. You can read the factsheet at budget.gov.au.