The CGT changes announced in the 2026–27 Federal Budget have sparked a wave of questions from clients – and understandably so. From 1 July 2027, the long‑standing 50% CGT discount for Australian resident individuals, trusts and partnerships will be replaced with cost‑base indexation and a 30% minimum tax rate on net capital gains. For anyone who has built wealth through property, shares, managed funds or other long‑term investments, this feels like a major shift. But the real story is not about rushing to sell – it’s about planning smarter, earlier and with a clearer long‑term strategy.
Should you sell, hold or restructure?
The decision shouldn’t start with the tax change. It should start with the role the asset plays in your broader financial plan. A pre-1 July 2027 sale may be sensible where the asset no longer supports your objectives, creates unnecessary concentration risk, or where selling allows capital to be repositioned in a way that better aligns with your long-term tax, investment and retirement strategy. Equally, holding may be the stronger option where the asset still has sound fundamentals, produces reliable income, or selling would bring forward tax without improving your overall position.
Rather than asking whether the CGT change alone makes an asset worth selling, consider:
- what role the asset serves in your portfolio today — income, growth, diversification, lifestyle or succession planning
- whether the original investment case has changed, or whether concern is being driven mainly by the upcoming tax rules
- whether a sale would genuinely improve your after-tax position after allowing for transaction costs, loss of income and reinvestment risk
- whether a staged sale, contribution strategy, ownership review or broader restructure could deliver a better result than a simple sell-or-hold decision
This is where personalised planning becomes important. The right strategy will depend on your income, tax position, retirement timeframe, cashflow needs and what you ultimately want this asset to do for you.
Timing can also make a meaningful difference. Selling while you are still working and earning a high income may produce a very different outcome to selling in a lower-income year, staging the sale across tax years, or aligning the timing with retirement, super contribution opportunities and future cashflow needs.
The practical takeaway is to make the decision deliberately, not defensively. Before acting, review:
- the asset’s ongoing role in the portfolio
- the expected tax outcome under different timing scenarios
- the reinvestment, superannuation or restructuring options available
- whether the decision strengthens your long-term plan, rather than simply responding to a deadline
When might selling before 1 July 2027 make sense?
While there is no automatic benefit in selling purely because of the CGT change, there are circumstances where selling before 1 July 2027 is worth modelling. The distinction is important: the timing should support the strategy, not replace it.
Selling may be worth considering where:
- the asset is no longer aligned with your goals
- the portfolio is too concentrated
- the asset is underperforming
- the proceeds can be redeployed into a more suitable investment or superannuation strategy
Structural factors can also influence timing, including:
- trusts with beneficiaries in different tax positions
- carried-forward losses or unusually low income in a particular year
- company cashflow, succession, franking, loss or asset protection considerations
- business assets where small business CGT concessions, ownership, timing and retirement planning may materially affect the outcome
A lower-income year before 1 July 2027 may also create an opportunity to realise a gain more efficiently. For clients approaching retirement, this can link directly with contribution planning, because sale proceeds or deductible contributions may help build wealth inside super.
These are planning reasons, not panic reasons. Selling before 1 July 2027 should form part of a broader tax, investment, retirement or estate planning strategy.
Why building wealth inside super is now even more important
If there is no compelling reason to sell before 1 July 2027, the focus shifts to what you can control. One of the biggest opportunities is building more long-term wealth inside superannuation, where the tax treatment can be significantly more favourable than holding investments personally.
Super is not just a retirement account. It is a tax-effective investment structure because:
- in accumulation phase, investment earnings are generally taxed at up to 15%
- capital gains on assets held for more than 12 months can effectively be taxed at 10% after the one-third CGT discount
- concessional contributions are generally taxed at 15% when they enter super, rather than at your personal marginal tax rate (although additional tax can apply for higher-income earners).
For clients approaching retirement, this can be particularly powerful. Instead of asking whether an asset should be sold before a tax change, it may be more useful to ask how future savings, surplus cashflow, sale proceeds or deductible contributions can strengthen your retirement position inside super.
Contribution opportunities need to be planned early
Getting money into super requires forward planning because several rules affect what is possible, including contribution caps, eligibility rules, age and work status, total super balance and timing.
For 2026–27, the concessional contribution cap is $32,500 and the non-concessional contribution cap is $130,000. Where available, unused concessional cap amounts from previous years can create an important opportunity to contribute more in a year when taxable income is unusually high.
Case study: turning a capital gains year into a retirement planning opportunity
Sarah, aged 58, earns $145,000 a year from employment and expects to sell a long-held investment, creating a $200,000 capital gain. After applying the 50% CGT discount, the taxable capital gain is $100,000. Before any planning, her taxable income for the year would increase to $245,000.
Based on 2026–27 resident individual tax rates, and assuming the Medicare levy applies, the additional $100,000 taxable capital gain would add approximately $43,400 to her personal tax bill.
Sarah’s employer is expected to make compulsory super guarantee contributions for the year. After allowing for those employer contributions, she identifies sufficient available concessional cap space, including unused carry-forward amounts from earlier years, to make a $55,000 personal deductible contribution. She makes the contribution before 30 June and lodges the required notice of intent to claim the deduction.
- before the contribution, Sarah’s taxable income is approximately $245,000, made up of $145,000 salary and a $100,000 discounted taxable capital gain
- the $55,000 deduction reduces her taxable income to approximately $190,000
- because this deduction reduces income that would otherwise have been taxed at 47% including Medicare levy, it reduces personal tax by about $25,850
- the $55,000 personal deductible contribution is taxed in super at 15%, or $8,250
- the estimated net tax saving is therefore about $17,600, while also moving more money into a concessional retirement savings environment
Sarah has used a year in which her salary and capital gain lift her taxable income into the top marginal tax bracket to convert part of the tax problem into a retirement planning opportunity: $55,000 is contributed to super on top of her employer contributions, the immediate tax outcome is improved, and more of her wealth is invested in a lower-tax environment for retirement.
A planned deductible contribution can materially reduce the personal tax impact of a capital gain while strengthening retirement savings.
Non-concessional contributions or the bring-forward rule can also help move personal wealth into the super environment over time. From 1 July 2026, eligible individuals may be able to contribute $130,000 as a non-concessional contribution or bring forward up to three years of non-concessional contributions, allowing contributions of up to $390,000, subject to their total super balance and other rules.
These strategies require planning. The best outcomes are usually created before the contract is signed, before the contribution deadline passes and before the tax return is being prepared.
A clear plan matters more than a quick reaction
In conclusion, there’s no automatic benefit in selling before 1 July 2027 purely because of the CGT changes.
What matters is having a clear strategy for each asset you own, a plan for how future wealth should be built and a process for deciding whether assets should be retained, sold, restructured or gradually moved into super.
Good advice helps you separate noise from opportunity. It shows you what the numbers look like, what the trade-offs are and how each decision connects to your retirement, cashflow, estate planning and long-term wealth goals.
If you own an investment property, shares, managed funds or another asset with an unrealised gain, now is a sensible time to review your position – not because you need to rush into a sale before 1 July 2027, but because early planning gives you more options to build wealth in the right structure, including superannuation.
If you want the reassurance from knowing you are making deliberate decisions with a clear plan behind you, get in touch with a William Buck Wealth advisor today.
