Mo Money #492 Capital gains discount changes
Mar 4, 2026
Discussion of proposed cuts to the capital gains tax discount on Australian property and how the change might be implemented. Exploration of who would be affected and which ownership structures could gain or lose appeal. Consideration of likely market and price impacts and practical timing and planning strategies for those holding or buying property.
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How A Smaller CGT Discount Raises Your Tax Bill
- Reducing the CGT discount from 50% to 25% raises assessable gains and can push sellers into the 47% top tax bracket.
- Ben Nash illustrates a $200,000 gain becoming $150,000 taxable instead of $100,000, costing roughly an extra $25,000 tax at top rates.
Large Budget Cost Drives Policy Discussion
- The CGT discount currently costs the budget about $21 billion for FY2026 and 830,000 people used the discount in 2022-23.
- Ben Nash uses this fiscal scale to explain why the government might pursue the change as a budget measure.
Prefer Long Term Holding Over Repeated Flips
- Consider buy-and-hold strategies rather than frequent flipping since selling triggers CGT and transaction costs.
- Ben Nash notes stamp duty and selling costs plus reduced CGT benefits make repeated flipping less attractive financially.