Investment and property

30% minimum tax on certain capital gains from 1 July 2027

Review the enacted minimum-tax gap calculation for covered capital gains of Australian resident individuals.

Who can claim

This deduction is available to individuals.

  • You are an individual who is an Australian resident at any time in the income year.
  • You have covered residential or non-residential capital gains from CGT events on or after 1 July 2027 after applying the statutory net-capital-gain steps.

What you cannot claim

  • Capital gains covered by the new-residential-dwelling or affordable-housing provisions are excluded from the minimum-tax capital gain.
  • The extra tax does not apply where you receive one of the listed social security, family assistance, veterans, military rehabilitation or other statutory support payments during the income year.
  • This is not a flat 30% tax on gross sale proceeds or on every capital gain.

How the amount is worked out

Start with covered capital gains remaining after the net-capital-gain method, then reduce them by eligible gift and conservation-covenant deductions. Compare 30% of that minimum-tax capital gain with the basic income tax attributable to it. Extra tax is payable only for a positive whole-dollar gap.

Records the ATO expects

  • Net capital gain worksheet
  • Gift and conservation-covenant deductions
  • Basic income tax liability calculation
  • Residency and eligible payment records

Before you rely on this rule

This rule starts with CGT events on or after 1 July 2027 and uses a gap calculation, not a separate 30% tax on the whole transaction.

Where this rule comes from

Primary source: Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (Act No. 49, 2026 — latest compilation). Reviewed 30 July 2026. Covers the From 2027-28 income years.

Next steps