Labor’s change to the capital gains tax discount is one of the biggest items in the budget – but it’s also one of the most complicated.
CGT is paid when an asset is sold but, since 1999, owners have had a CGT discount. Under the changes, from 1 July 2027, the CGT discount will be replaced with a new cost-base indexation system. It’s important to note that your main residence – or the family home – is still exempt from CGT under the new scheme.
