Property Tax Changes · Koste Knowledge Base

How do the new CGT indexation rules affect property investors?

Published 26 June 2026 · Last updated 19 August 2026

Quick Answer

The legislated CGT indexation changes replace the current CGT discount model, from 1 July 2027, 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 legislated 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.

Frequently Asked Questions

Are the rules final?

Investors should confirm the final legislation with their accountant.

What is cost base indexation?

It adjusts the cost base for inflation when calculating gains.

Does depreciation still matter?

Yes. Capital works and depreciation records remain important.

Should I sell before the changes?

Do not decide without accountant and financial advice.

Can Koste.ai help prepare records?

Yes. Koste.ai can help organise depreciation and cost base information.

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CGT indexationcapital gains taxproperty tax changes

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