CGT Discount Rumours: What You Need to Know

Talk of changes to Australia’s Capital Gains Tax (CGT) discount has intensified, with government leaks and public commentary suggesting reform may feature in the upcoming Budget. Treasury modelling and political signals point toward a reassessment of the longstanding 50% discount, particularly for investment property owners.

Why Change Is Back on the Agenda

• Housing affordability pressures— Analysts argue the current discount encourages investor activity that pushes up prices, limiting access for younger Australians.

• Budget sustainability— The CGT discount could cost the Budget hundreds of billions in forgone revenue over the coming decade.

• Wealth inequality— More than 80% of the benefit flows to top income earners, prompting calls for fairer tax settings.

What Reforms Are Being Considered

• Cutting the discount from 50% to 25%, specifically for investment properties.

• Introducing asset specific discounts, retaining incentives for new housing or business investment.

• Returning to an inflation indexed CGT method used before 1999.

These discussions align with longstanding IMF recommendations for broader tax reform aimed at simplicity, fairness, and efficiency.

What Should You Do Now?

• Consider timing & structuring of sales or acquisitions

• Model potential tax impacts.

• Stay alert for Budget announcements.

Need clarity? Let’s talk.

The Macro Group team can help you understand what potential CGT changes mean for your investment strategy or business decisions.

Reach out today to get tailored guidance and confidence in your next steps.

The Macro Group Team

Date: 30/03/2026

The Macro Group Limited AFSL: 485843 Tax Agent Number 24 76 5236.

The information in this article contains general information only. We have not taken into consideration any of your personal objectives, financial situation or needs. Before taking any action, you should consider whether the general advice contained in this communication is appropriate to you having regard to your circumstances and needs and seek appropriate professional advice if you think you need it. We recommend that you consult a licensed or authorised financial adviser if you require financial advice that takes into account your personal circumstances