FiscalFox editorial team · Product lead: Grant Sloane · Updated
Calculate Australian CGTWhat happens on 30 June 2027
If you are an Australian resident individual and still hold an asset you bought before 1 July 2027, you are treated as selling it on 30 June 2027 for its market value just before 1 July, and buying it back on 1 July 2027 for the same amount. This is in Subdivision 112-E of the Income Tax Assessment Act 1997, added by the Treasury Laws Amendment (Tax Reform No. 1) Act 2026.
Companies and super funds, including self-managed super funds, are outside these rules. Foreign and temporary residents are excluded, tested when the shares are really sold.
Sources: ATO: Capital gains tax reform
The gain waits until you really sell
The gain or loss on that deemed sale is not taxed in 2026-27. It is set aside and counted in the year you actually sell the shares, alongside a second gain or loss for the time after 1 July 2027.
For example, a parcel that cost $5,000 and is worth $8,000 at the end of 30 June 2027 carries a $3,000 deferred gain. If you sell it in 2029 for $9,000, that year includes the $3,000 deferred gain and a gain on the growth after 1 July 2027, worked out from a cost base of $8,000.
The discount on the deferred gain
The deferred gain keeps the 50% discount if the real sale is at least 12 months after you first bought the parcel. The 12 months run to the real sale, not to 30 June 2027, so a parcel bought in March 2027 can still qualify if you sell it after March 2028.
The gain after 1 July 2027 doesn't get the discount. Instead its cost base is indexed for inflation, again only if you held the parcel for at least 12 months in total.
Market value is your new cost base
The 30 June 2027 market value becomes each parcel's cost base from 1 July 2027. For listed shares and ETFs that is usually the closing price on 30 June 2027, which is a Wednesday and a trading day. The ATO has said it will publish guidance on working out market value and the records to keep before the date.
The law also allows an apportioning method set by the Minister. It hasn't been made yet, and the draft published in August 2026 doesn't cover listed shares or ETFs, so for most investors the market value is what counts. The choice is made when you lodge the return for the year you sell.
What to do before the date
Gather every purchase of the shares and ETFs you still hold, from every broker you've used, and each fund's AMMA statements. A parcel's deferred gain depends on its cost base up to 30 June 2027, so gaps in your history now become wrong figures later.
Keep the 30 June 2027 values, with where they came from, until the return for the year of each sale and the period it can be amended have passed. A broker's end of year portfolio valuation statement is a good source for the closing prices.
The minimum tax is a separate part of the reform
From 2027–28, the reform also introduces a 30% minimum tax calculation on relevant net capital gains. A valuation records the transition amount; it is not a calculation of the eventual tax bill. The later sale, losses, indexation and other income affect that calculation.
Sources: Treasury Laws Amendment (Tax Reform No. 1) Act 2026
Questions and answers
Do I report the deemed 30 June 2027 sale on my 2026–27 return?
The transition gain or loss is deferred until the real disposal. Keep the valuation and cost base evidence for the later calculation.
Does this valuation tool cover an SMSF?
The individual transition rules described here do not apply to companies or superannuation funds, including SMSFs.
Official sources
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