What is the 2027 CGT change?
From 1 July 2027 a 30% minimum tax rate applies to real (inflation-adjusted) capital gains accruing from that date. The change was announced on Budget night by Treasurer Jim Chalmers. The 30% floor sits alongside the existing CGT framework — the 50% discount for assets held more than 12 months remains available subject to standard ATO Capital Gains Tax rules, and the inflation adjustment reduces the taxable portion of the gain.
Source for the policy figures: Treasury Budget Papers (Budget 2026-27). Final figures will appear in the legislation when published.
What is the income-support (Centrelink) exemption?
Australians who receive an income-support payment from Services Australia at the time of sale — Age Pension, JobSeeker, and similar payments — are exempt from the 30% floor. They are instead taxed on the inflation-adjusted gain at their personal marginal rate, after the standard 50% CGT discount where eligible.
Per current reporting, receiving any income-support payment at the time of sale — even a small part-Age Pension — provides the carve-out. The precise wording of the eligibility test will be confirmed once final legislation is published.
Source: Reporting on Budget speech and accompanying papers; Services Australia's Age Pension page for income-support definitions.
The sharp divide — pensioner vs self-funded retiree
Two Australians with identical assets can face different tax outcomes purely based on whether they receive a Centrelink payment at the time of sale. The table below illustrates how each path applies under the 2027 rules — population estimates are from publicly reported Department of Social Services figures.
| Scenario factor | Income-support recipient | Self-funded retiree (no payment) |
|---|---|---|
| Subject to new 30% minimum CGT from 1 July 2027 | Exempt | Applies |
| How the gain is taxed | Marginal rate after inflation-adjusted discount | Subject to 30% floor on real gain |
| Trigger for exemption | Receiving any income-support payment at time of sale | — |
| Main residence sale | Exempt (100%, unchanged) | Exempt (100%, unchanged) |
| Approximate population (Australia) | ~2.67M on Age Pension; ~860K part-pensioners | ~1.4M self-funded, aged 65+ |
Illustrative comparison of how the rules apply. Individual outcomes depend on circumstances — verify with a registered tax agent.
Am I likely on the exempt or exposed side?
Eligibility for the income-support exemption depends on whether someone receives an income-support payment at the time of sale. For the Age Pension specifically, the eligibility factors are:
- Age — at least 67 (the qualifying age has been set at 67 since 1 July 2023).
- Residency — Australian resident and physically in Australia on the day of claim; 10 years of residency (with at least 5 of those continuous) in most cases.
- Income test — assessable income from work, financial assets, and other sources, deemed where applicable.
- Assets test — assets other than the principal home (which is exempt).
Thresholds for the income and assets tests are indexed quarterly. Current figures are published at Services Australia — Age Pension eligibility.
These eligibility factors describe how the system determines an outcome. They do not constitute advice on what to do.
See how the paths compare for your situation
The illustrator below shows the directional difference between the two paths for a hypothetical asset sale. The output is an illustrative range based on the inputs chosen, not a calculation of actual tax owed.
See how the two paths could look.
Path A — Income-support recipient
Illustrative CGT range
$25,000 – $40,000
Marginal rate × inflation-adjusted gain, 50% CGT discount where eligible.
Path B — Self-funded retiree
Illustrative CGT range
$50,000 – $75,000
30% floor on real gain applies if higher than marginal-rate outcome.
Illustration based on the inputs you chose. Not a calculation of your actual tax. Not advice.
Want to model this against your real numbers and watch it update as policy and your finances change? Richify's What-If engine and Sam (macro scenarios) do exactly this.
Download Richify — FreeWhat this does not change
- Main residence exemption preserved. The principal place of residence remains exempt from CGT under the standard ATO rules.
- Pre-CGT assets unchanged. Assets acquired before 20 September 1985 generally remain outside the CGT system.
- CGT discount unchanged. The 50% discount for individuals on assets held more than 12 months remains available, subject to standard eligibility.
- Deeming rates context. Deeming rates rose on 20 March 2026 to 1.25% (lower) and 3.25% (upper). Deeming affects the Age Pension income test but is separate from the CGT change.
Sources & further reading
- Treasury — Budget Papers (primary source for the 30% minimum CGT figure and effective date).
- ATO — Capital Gains Tax (existing CGT discount and main residence exemption rules).
- Services Australia — Age Pension (eligibility, income and assets tests, current thresholds).
- Services Australia — Income support payments (definitions of which payments qualify as "income support").
Related Australian guides & tools
Retirement Calculator Australia →
Find your retirement number with ASFA + Age Pension built in.
Net Worth by Age (Percentile Tables) →
Median, top 10%, top 1% Australian thresholds by age.
Average Super Balance by Age →
Median & mean super balances per age band.
FIRE Calculator Australia →
Early-retirement target with two-phase super model.