The 2027 CGT Changes Explained for Collectors
The 2026–27 Federal Budget proposed the biggest CGT overhaul in decades. Here's what's actually changing — in collector terms — and what's still just a proposal.
Last updated 24 June 2026 · This page tracks the proposed legislation as it progresses.
The 2026–27 Federal Budget, announced on 12 May 2026, proposed sweeping changes to capital gains tax. Everything below is proposed: not yet law, with no exposure draft released and no ATO valuation guidance issued.
What was announced
From 1 July 2027, the Budget proposed to:
- Replace the 50% CGT discount with CPI cost-base indexation
- Introduce a 30% minimum CGT rate
- Draw pre-CGT assets (acquired on or before 19 September 1985) into the net for gains accruing after the date — with personal collectables included, and a market valuation needed at the transition
Indexation vs the old discount
Today, holding a card over a year halves the taxable gain. Under the proposal there is no halving — instead your cost base is lifted by inflation over the hold period, and the gain above that indexed figure is taxed (with a 30% minimum rate potentially applying). For fast-appreciating assets, indexation is often less generous than the old 50% discount.
Illustrative only
Buy a card for $2,000 in 2022, sell for $5,000 in 2028. Today: the $3,000 gain is halved by the discount — $1,500 taxable. Proposed: no halving; your $2,000 cost base rises by inflation and the gain above it is taxed. The real outcome depends on the final law and CPI — don’t rely on this figure.
Pre-CGT assets and collectables
Assets acquired before CGT began (on or before 19 September 1985) would lose their blanket exemption for gains accruing after 1 July 2027, and personal collectables get drawn in. That is why a documented transition-date valuation matters — it sets the baseline for any future gain.
It’s not law yet
As at late May 2026 there was no exposure draft, and the ATO had not issued valuation guidance. Keep it separate, too, from the Division 296 super tax (an extra 15% on balances over $3M, which passed Parliament on 10 March 2026 with unrealised gains removed) — press coverage often muddled the two.
Frequently asked questions
When do the 2027 CGT changes start?
The Budget proposed a 1 July 2027 start. As at mid-2026 the measures are proposals only — not yet legislated — so timing and detail could change.
Is the 50% CGT discount being abolished?
The Budget proposed replacing the 50% discount with CPI cost-base indexation from 1 July 2027. It has not yet been legislated. Confirm the current rules with a registered tax agent before relying on either method.
What is cost-base indexation?
Indexation increases the cost base of an asset in line with inflation (CPI) over the time you hold it, so only the gain above inflation is taxed. The proposal would use indexation instead of the flat 50% discount.
Keep reading
Track your collection the tax-smart way
Record cost base, hold periods and values as you go — so tax time, and the 2027 transition, are already handled.