Changes to Capital Gains Tax (CGT) are coming, and while 1 July 2027 might seem a little way off, now is a good time to start planning.

Whether you own an investment property, hold shares or have an interest in a private company, the new rules could affect how much tax you pay when you eventually sell an asset.

So, what exactly is changing, and what should you be doing now?

What's changing?

The Australian Government has introduced changes to how capital gains will be taxed from 1 July 2027.

Under the current rules, eligible individuals and trusts can generally receive a 50% discount on capital gains for assets held longer than 12 months.

Under the new arrangements:

• The existing 50% CGT discount will generally be replaced with an inflation-based adjustment for gains arising from 1 July 2027.
• A minimum 30% tax rate will apply to certain capital gains arising from that date.
• Gains accumulated before 1 July 2027 will generally retain their existing CGT treatment.
• Special rules will apply to certain investments, including newly built residential properties.

Importantly, the changes won't affect everyone in the same way. Your circumstances, the assets you hold and when you acquired them will all play a part.

Why your asset values matter

Here's where a little forward planning could make a big difference.

Because the changes distinguish between gains made before and after 1 July 2027, understanding the value of your assets around that date could be important.

Assets worth reviewing may include:

• Investment properties – particularly those held for several years.
• Shares and investments – including interests in unlisted entities.
• Private companies – where determining market value can be more complex.

Having accurate records and appropriate valuation evidence can help support future CGT calculations and make decisions about selling, transferring or restructuring assets easier.

Do you need a formal valuation?

Not necessarily.

Not every asset will require a formal valuation, and the new CGT rules don't automatically mean everyone needs to organise one.

However, depending on your circumstances, a professional valuation may be appropriate, particularly for privately held businesses, unlisted shares or assets where market value is difficult to establish.

The ATO expects valuations used for tax purposes to be reasonable, supported by appropriate evidence and properly documented.

The key is understanding which assets need attention, what evidence is appropriate and when it should be obtained.

What does SEIVA recommend?

Our advice? Don't wait until you're ready to sell to start thinking about CGT.

Now is a good opportunity to review the assets you hold and have a conversation with your SEIVA Advisor about how the changes could affect you.

Together, we can help you identify which assets may need further consideration, whether a formal valuation is appropriate and the best time to organise one.

As always, a little planning today can help avoid unexpected surprises down the track.

Not sure where to start? Reach out to your SEIVA Advisor. We're here to help you make sense of the changes and plan your next steps with confidence.

Want to know more?

For further information, visit the official government resources:

Australian Government – Capital Gains Tax Reform

ATO – Market Valuation for Tax Purposes