Should I sell my investment property now, or after July next year?

June 10, 2026 — 5:01am

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I have owned an investment property since 1997 and, with the proposed removal of the 50 per cent capital gains tax (CGT) discount, I am confused about the rules that may apply after July 2027. I originally owned two apartments, but sold one in 2015, using the proceeds to pay out the mortgages on both properties. The remaining apartment is no longer negatively geared, so the rental income, combined with my pensions, places me in a higher tax bracket. I understand that I will have to pay CGT whether the 50 per cent discount remains available. What confuses me is the proposed new system that allows increases in the Consumer Price Index to be considered when calculating the taxable gain. The treasurer said the system from July 2027 will be based on the pre-1999 rules, which I know little about.

I am looking for a comparison of the likely outcome if I sold now, before July 2027, or sometime after that date. I would appreciate your guidance as I am trying to decide whether to sell or keep the property. It earns about $36,000 a year, so it remains a worthwhile investment. I’m thinking about selling it, maybe in the next 12 months or even beyond 2027.

If you sign a contract to sell before June 30, 2027, the entire capital gain will be assessed under the current rules, and you will receive the full 50 per cent CGT discount. If you sign a contract after that date, the gain will be apportioned between the period before July 1, 2027 and the period after.

Using your example, if you bought the property in 1997 and sold it in 2029, you would have owned it for 32 years. Of those, 30 years would fall under the current rules and only two years under the new rules.

As a result,........

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