If I Buy Shares Now, Will the New CGT Rules Apply in 2027?
Published: 19 October 2026
If you're thinking about buying shares in Australia, you might be wondering whether you should invest now or wait until after the new Capital Gains Tax (CGT) rules commence on 1 July 2027.
The short answer is yes. Even if you purchase shares today, the new CGT rules can apply to profits you make after 30 June 2027.
The Australian Government has passed the Treasury Laws Amendment (Tax Reform No. 1) Act 2026, which received Royal Assent on 26 June 2026.
The changes introduce a new inflation-based approach to calculating capital gains and a minimum 30% tax rate on certain capital gains arising from 1 July 2027.
But what does this actually mean for everyday share investors?
What Are the New CGT Rules Starting 1 July 2027?
Currently, Australian individuals who hold shares for at least 12 months can generally claim a 50% CGT discount when they sell their shares at a profit.
From 1 July 2027, two major changes will apply to eligible capital gains accruing from that date:
The 50% CGT discount will be replaced with inflation indexation. Instead of automatically reducing an eligible capital gain by 50%, the cost base will be adjusted for inflation.
A minimum 30% tax rate will apply to certain capital gains. This means qualifying gains will be subject to a minimum tax rate even if the investor's marginal income tax rate is lower.
Importantly, these changes apply to shares as well as other investments, including investment properties.
If I Buy Shares Before 1 July 2027, Am I Protected?
Partially, but not completely.
The legislation contains transitional provisions designed to preserve the existing CGT treatment for eligible gains accrued before 1 July 2027.
This means:
Profits accrued before 1 July 2027 can remain eligible for the existing 50% CGT discount.
Profits accrued from 1 July 2027 will generally be subject to the new inflation-indexation rules.
The new minimum 30% tax provisions can apply to eligible gains arising from 1 July 2027.
So, purchasing shares in October 2026 does not mean you can continue using the existing 50% CGT discount on all your future profits.
Example: Buying Shares in 2026 and Selling in 2030
Let's look at Sarah, who decides to invest $50,000 in shares in October 2026.
Her investment performs well over the following years.
Description | Amount |
Shares purchased in October 2026 | $50,000 |
Market value at 30 June 2027 | $60,000 |
Shares sold in 2030 | $90,000 |
Total capital gain | $40,000 |
How Would Sarah's Capital Gain Be Treated?
Assuming Sarah qualifies for the transitional arrangements and the 50% discount:
Profit accrued before 1 July 2027
Sarah's shares increased in value by $10,000 before the new rules took effect.
Under the existing 50% CGT discount, this would produce a discounted capital gain of $5,000.
Profit accrued after 30 June 2027
Sarah's shares increased by another $30,000 between July 2027 and the sale in 2030.
This portion would be subject to the new inflation-indexation rules and applicable minimum tax provisions.
The actual taxable gain will depend on inflation during the relevant period and Sarah's individual circumstances.
The important point is that Sarah does not automatically receive the 50% CGT discount on her entire $40,000 profit.
This example is simplified and excludes brokerage fees, capital losses and other adjustments.
Do I Need to Sell My Shares Before 30 June 2027?
Not necessarily.
Selling shares before 1 July 2027 may mean the existing CGT rules apply to the entire gain, including the 50% discount where eligible.
However, selling simply to avoid the new rules could create an immediate tax liability and may not be financially beneficial.
Investors should also consider transaction costs, market conditions and their long-term investment strategy.
Do I Need to Value My Shares on 30 June 2027?
The new transitional arrangements make the value of investments at 30 June 2027 important.
For publicly listed shares, historical market prices should generally be available from the relevant stock exchange or financial records.
Investors should keep records of:
The original purchase date and price.
Brokerage and transaction fees.
Share purchases and sales.
Dividend reinvestment transactions.
Relevant market values at 30 June 2027.
A formal independent valuation will not necessarily be required for ordinary listed shares, although more complex investments may require additional advice.
Is It Better to Buy Shares Before or After 1 July 2027?
There is no single answer.
Buying shares before 1 July 2027 may allow eligible gains accrued before that date to retain the existing CGT discount treatment.
However, future gains will generally be subject to the new rules regardless of when you originally purchased the shares.
The best investment decision should consider the expected return, holding period, risks and tax implications.
The tax rules matter, but they should not be the only reason you decide when to invest.
Final Thoughts
If you're planning to purchase shares before 30 June 2027, the most important thing to understand is that buying early does not exempt your entire future capital gain from the new CGT rules.
The legislation protects eligible gains accrued before 1 July 2027, while the new inflation-indexation and minimum tax arrangements apply to qualifying gains accruing from that date.
Understanding these differences can help you plan when to buy, hold or sell investments.
Need Help Understanding the New CGT Rules?
At Dolman Bateman, our Chartered Accountants in Roseville, Sydney, assist individuals and investors with capital gains tax calculations, share investments and tax planning.
Whether you're buying shares for the first time or managing an established investment portfolio, we can help you understand how the new CGT rules may affect your financial position.
Contact Dolman Bateman today for professional taxation advice.
Disclaimer: This article provides general information based on legislation available as at 19 October 2026. Individual tax outcomes depend on your circumstances, eligibility for transitional provisions and other applicable tax rules.
