For most households, the 2026–27 federal budget was a cost-of-living story. But if you hold investments (shares, an investment property, or a growing portfolio outside super), there's one announcement that deserves your full attention: a proposed overhaul of how capital gains are taxed. There's also good news on the super front (stability), and a few changes worth watching.
Here's what investors need to know, and how to keep your records ready for whatever lands.
General information only. This article summarises announced budget measures and is not financial, tax or investment advice. Several measures are proposals that still require legislation, and the detail can change. Speak to a registered tax agent or financial adviser about your situation, and check the ATO and budget.gov.au.
The Headline: Capital Gains Tax Is Changing
Since 1999, Australia has used a 50% capital gains tax (CGT) discount: hold an asset for more than 12 months and only half your gain is taxed. The 2026–27 budget proposes to replace that, from 1 July 2027, with:
- Cost base indexation for assets held more than 12 months: your purchase price is adjusted for inflation before the gain is calculated; and
- A 30% minimum tax on net capital gains.
What does that actually mean?
Under the current system, you halve the gain. Under the proposed system, you'd instead lift your cost base by inflation, then pay tax on what's left, with a 30% floor on the net result.
The practical effect depends on two things:
- How long you hold. Indexation rewards long holding periods more than short ones, because inflation compounds against your cost base over time.
- How fast the asset grows. For assets that grow well above inflation, the old 50% discount was often more generous. For slower-growing or longer-held assets, indexation can be comparable or better.
There's no one-size-fits-all answer, and importantly: this applies from 1 July 2027, so there's a window to understand the change before it starts. This is exactly the kind of decision to model with a financial adviser or accountant rather than rules of thumb.
A few reassuring details to keep the change in perspective:
- Gains made before 1 July 2027 keep the 50% discount. The new method is prospective, so it's the treatment of future gains that changes.
- Super is not affected. The CGT treatment of investments held inside superannuation is unchanged, another reason super remains a tax-effective place to hold growth assets.
- Pensioners and income support recipients are exempt from the 30% minimum rate.
Why your records matter more than ever
Both the old and new systems depend on one thing: knowing your cost base accurately. That means:
- Purchase dates and prices for every parcel of shares or each property.
- Brokerage and transaction costs, which add to your cost base.
- Capital improvements (for property) and any costs of ownership that affect the calculation.
Under indexation, accurate purchase dates become even more important, because the inflation adjustment is applied over your holding period. If your records are messy, you could overpay tax, or struggle to substantiate your position if the ATO asks.
This is where keeping your investments tracked in Financio pays off. Your transaction history captures purchase dates, prices and costs in one place, so when it's time to calculate a gain, under either system, you're not reconstructing years of trades from old emails.
Superannuation: Stability (Mostly)
The good news for super: the budget announced no new changes to super contributions, caps or rules. After several years of tinkering, stability is welcome.
The one thing already in motion is Division 296: an additional tax on earnings attributable to super balances above $3 million, which commences from 1 July 2026 (it was legislated in March 2026). If your balance is comfortably under $3 million, as it is for the overwhelming majority of Australians, this doesn't affect you.
If you're near or above the threshold, it's worth a conversation with your adviser about how earnings on the portion above $3 million will be treated, and whether your overall structure still makes sense.
The government is also consulting on changes to the super performance test, aimed at how funds are assessed across different and emerging asset classes. That's a "watch this space" item rather than something to act on today.
Property: Negative Gearing Changes Too
Alongside the CGT change, the budget proposes to limit negative gearing on residential property to new builds from 1 July 2027. The key points for property investors:
- Existing arrangements are grandfathered. If you hold a property on budget night (12 May 2026), you're not affected.
- From 1 July 2027, investors buying established homes can still carry losses forward to offset against future income, but can no longer deduct those losses against other income like your wages.
- New builds retain the existing negative gearing treatment, reflecting the policy's aim of channelling investment towards new housing supply.
Combined with the CGT change, this reshapes the after-tax maths on residential property from mid-2027, so it's worth understanding before making any new purchase decision. As always, this is general information, not advice for your situation.
If you own an investment property, this is a good moment to:
- Make sure your cost base is complete: purchase costs, stamp duty, and capital improvements all count.
- Track ownership costs that affect deductibility and your eventual gain.
- Avoid rushed decisions. A tax change with a 2027 start date is a reason to plan, not to panic-sell.
In Financio, tracking an investment property as an asset, with its purchase details and associated transactions, keeps the numbers you'll need for any future CGT calculation in one place.
A Watch-List Item: Venture Capital
For those who invest in early-stage companies, the budget flagged an expansion of venture capital tax incentives from 1 July 2027, intended to give investors (including super funds) more flexibility to invest for longer periods. Detail is still emerging; one to monitor if it's relevant to you.
What Investors Should Do Now
You don't need to make big moves today. But you should get your house in order:
- Tidy your cost base. Make sure every holding has accurate purchase dates, prices and costs recorded. This matters under both the old and new CGT rules.
- Keep investment transactions current in Financio so dividends, interest and capital events are all captured.
- Diarise the dates. CGT changes apply from 1 July 2027; Division 296 from 1 July 2026.
- Get advice before acting. The CGT change in particular is genuinely situation-dependent; model it properly rather than relying on headlines.
For a refresher on the fundamentals, our investing basics guide and our piece on superannuation as an asset are good companions.
The Bottom Line
The 2026–27 budget left super largely alone but proposed a meaningful change to capital gains tax from mid-2027. The investors who handle it best won't be the ones who react fastest; they'll be the ones whose records are clean, whose cost bases are accurate, and who plan the transition with good advice.
Open Financio, check that your investment holdings have complete purchase details, and you'll be ready to make calm, informed decisions as the new rules take shape.