Property Tax Changes · Koste Knowledge Base

How do the new CGT indexation rules affect property investors?

Quick Answer

The proposed CGT indexation changes would replace the current CGT discount model with cost base indexation and a minimum tax approach from 1 July 2027. Investors should focus on keeping accurate purchase, improvement, depreciation and sale records.

Under the proposed reforms, cost base indexation becomes more important.

Indexation adjusts the cost base for inflation, rather than simply applying the current discount model.

This means records matter more.

Investors should keep:

Purchase price
Stamp duty
Legal fees
Settlement records
Renovation costs
Improvement costs
Depreciation schedules
Capital works records
Sale costs
Ownership details

This is especially relevant for long-term property owners, trusts and investors planning to sell after 1 July 2027.

Important: These reforms should be treated carefully until final legislation is confirmed.

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Written by Koste Team · Koste Chartered Quantity Surveyors · AIQS Member · RICS Member · TPB Registered · 1300 669 400 · info@koste.ai