A 360 ONE guide to how CGT works on your home, your shares, your crypto and inherited assets, and the changes arriving from 2027.
Capital gains tax is the tax you pay on the profit when you sell an asset for more than it cost you. It applies to property, shares, managed funds, cryptocurrency and many other assets. Understanding how it works, and planning around it before you sell, is one of the clearest examples of The 1% Way: a considered decision today that compounds into a materially better outcome down the track.
This guide explains the essentials for individuals, covers the assets most people hold, and sets out the significant changes to CGT confirmed in the 2026-27 Federal Budget.
How Capital Gains Tax works
CGT is not a separate tax. A net capital gain is added to your assessable income for the year and taxed at your marginal rate. According to the Australian Taxation Office, a CGT event happens when you dispose of an asset, which includes selling it, giving it away, or transferring it to someone else. Gifting an asset still counts, and the gain is worked out using the market value at the time of the transfer.
The gain itself is the difference between what you receive and the cost base of the asset, which includes the purchase price and certain costs of buying, holding and selling. Capital losses can be offset against capital gains, and unused losses can be carried forward to future years.
The 50% Discount Change Arriving in 2027
For assets held longer than 12 months, Australian resident individuals have been able to reduce a capital gain by 50%, so that only half the gain is taxed. The ATO confirms this discount applies to individuals and trusts, while complying super funds receive a one third discount. This concession has been part of the system since 1999.
This is changing. The point worth reading carefully:
What is changing from 1 July 2027 (announced in the 2026-27 Federal Budget, now before Parliament). For CGT events from 1 July 2027, the 50% discount for individuals, trusts and partnerships will be replaced by cost base indexation, which adjusts the cost base for inflation, together with a minimum tax of 30% on the net capital gain. Gains made before 1 July 2027 keep the 50% discount, and assets held across that date are split, so the portion of the gain up to 1 July 2027 keeps the discount and the portion after is taxed under the new rules. The main residence exemption and the small business CGT concessions are retained unchanged. Disposals of new residential property and affordable housing may choose between the discount and the new regime.
There is one clear planning implication. Gains realised before 1 July 2027 continue to attract the current 50% discount, so there is a defined window to review assets and plan disposals with intention. This is a conversation worth having well in advance rather than at the point of sale.
Your Home: The Main Residence Exemption
For most Australians, the family home is the most valuable asset they own, and a capital gain on a main residence is generally exempt from CGT. The 2026-27 Budget left this exemption intact, which makes it more valuable than ever relative to other growth assets.
The 6 year rule is the part many people miss. The ATO explains that if you move out of your home and rent it out, you can continue to treat it as your main residence for up to six years and keep the exemption, provided you do not nominate another property as your main residence during that time. If the home is left vacant rather than rented, it can be treated as your main residence indefinitely. Reoccupying the home as your main residence resets the six year period, so a fresh window opens if you move out again.
A couple of points to keep in mind. If you use part of your home to produce income, for example renting out a room, that portion may no longer be fully exempt. And different rules apply to foreign residents, so anyone living or working overseas should seek advice before selling.
Shares + Managed Funds
Selling shares or units in a managed fund is a CGT event. The same principles apply: the gain is the difference between proceeds and cost base, the 50% discount applies to parcels held longer than 12 months under the current rules, and capital losses can offset gains. Where you hold multiple parcels of the same share bought at different times, the parcel you choose to sell affects the gain, which is a detail worth planning rather than leaving to chance.
Cryptocurrency
Cryptocurrency is treated as a CGT asset, not as currency. The ATO has made clear that disposing of crypto triggers a CGT event, and disposal covers more than selling for Australian dollars. Trading one cryptocurrency for another, using crypto to buy goods or services, and gifting crypto are all disposals. Accurate records of every transaction, including dates and values, are essential, because the ATO receives data directly from Australian exchanges.
Inherited Assets
Inheriting an asset such as a home, shares or an investment property can carry CGT consequences when you later sell it. The outcome depends on the type of asset, when the deceased acquired it, and how it was used. For an inherited dwelling, a common pathway is that no CGT applies if it is sold within two years of the date of death, although the rules have several conditions. Because the cost base of an inherited asset depends on these specifics, this is an area where early advice protects real value.
A Note for Property Investors
The 2026-27 Budget also changed negative gearing. For established residential property acquired after 7:30pm on 12 May 2026, losses will be limited from 1 July 2027 so that they can offset residential rental income or capital gains rather than salary or other income. Properties held at that Budget date are grandfathered under the current rules, and new builds retain their treatment. Investors weighing a purchase or sale should factor this in.
Planning Makes the Difference
A few habits consistently improve CGT outcomes. Holding an asset longer than 12 months currently unlocks the discount. Realising a capital loss in the same year as a gain can reduce the tax payable. Timing a disposal with your income year in mind can change the rate that applies. And keeping clean records of cost base from the day you acquire an asset means nothing is left on the table when you sell.
How 360 ONE partners with you
Capital gains tax rewards forward planning, and it punishes leaving the conversation until the contract is signed. We partner with you to map the CGT position of your assets before you act, work through the available exemptions and concessions, and plan the timing so your outcome is shaped rather than discovered. With significant changes arriving in 2027, there has rarely been a more valuable moment to review your position.
This is the 360° view at work that considers your assets, your income and your timing considered together, so every decision compounds in your favour.
Sources. Australian Taxation Office for CGT events, the CGT discount, the main residence exemption and the six year rule, cryptocurrency and inherited assets. The 2026-27 Federal Budget measures are drawn from budget.gov.au and Treasury materials. Figures and rules are current as at the 2025-26 financial year and the Budget announced on 12 May 2026.
This guide is general information and does not take account of your personal circumstances. Speak with 360 ONE before acting on it.