Federal Budget 2026–27 has proposed the most significant overhaul of Australia’s capital gains tax (CGT) regime in nearly three decades. If passed, from 1 July 2027, the 50% CGT discount that has shaped how Australians invest for a generation will be replaced by cost base indexation and a 30% minimum tax on capital gains.
The changes extend well beyond investment property and into shares, business interests and the assets people leave behind. For Gold Coast families where property investment runs deep and many estates include a mix of assets, the implications are real – and worth understanding now.
What is changing and when
The Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 passed the House of Representatives on 4 June 2026 and is currently before the Senate. If passed, the 50% CGT discount would be abolished for gains accruing from 1 July 2027. In its place, the government is introducing:
- Cost base indexation – the ‘cost base’ is what you originally paid for an asset, plus certain costs associated with buying, holding and selling it. Indexation adjusts that figure for inflation over time, so you are only taxed on the real gain above inflation, not the full nominal increase in value
- A 30% minimum tax on net capital gains (that is, gains after any allowable deductions or losses are applied) for individuals, trusts and partnerships
The changes apply to all CGT assets, not just residential property. Investment properties, shares, business interests and assets held in family trusts are all within scope.
Gains that accrued before 1 July 2027 will continue to be assessed under the 50% discount. For tax purposes, assets are treated as though they were sold and repurchased on that date, splitting the gain between the old rules and the new ones. The deemed disposal itself does not trigger a tax liability – it is a technical mechanism for separating the two periods, not a taxable event.
How CGT works with deceased estates in Queensland
Under current Australian tax law, assets do not automatically attract CGT when they pass to a beneficiary on death. The tax is deferred. For an investment property, the beneficiary generally inherits the asset at the original purchase price paid by the deceased, and CGT only becomes payable when they later sell. In Queensland, the Succession Act 1981 (Qld) governs how estates are administered, though the tax treatment of inherited assets is a matter of federal law. The ATO has a number of useful examples of how CGT will apply to inherited assets here: https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/inherited-assets-and-capital-gains-tax/cost-base-of-inherited-assets
This is where the Budget’s changes become relevant. If a beneficiary inherits an investment property, a parcel of shares or a business interest and then sells it after 1 July 2027, then subject to final legislation, a 30% minimum tax would apply to the gain accruing from that date. The 50% discount that the deceased may have been counting on to reduce the tax burden would no longer be available for that post-2027 component. This is an area where specialist wills and estates lawyers can help families understand the implications before they arise.
The impact on investment properties, shares and business interests
Investment properties
Gold Coast property has delivered strong capital growth over the past decade, and many families hold investment properties as a core part of their estate planning. Under the new regime, gains accruing from 1 July 2027 would be subject to the 30% minimum tax regardless of how long the property has been in the family. Property lawyers on the Gold Coast are well placed to advise on how these transitional rules apply to a specific estate.
Shares and other investments
Shares and exchange-traded funds (ETFs) held outside superannuation are also caught by the changes. There are early indications that investors are already pivoting toward income-producing assets such as bonds, fixed income and high-yield shares, in anticipation of the new rules reducing the tax advantage of chasing capital growth. Where a will leaves a share portfolio to a beneficiary, the tax treatment of those shares on eventual sale will shift
Business interests
The Australian Industry Group has warned that the reforms “retrospectively apply higher tax rates to existing investments”, a concern that applies equally to business succession planning. Business owners who plan to pass a business to family members, or who hold business assets through a trust, face added complexity. The existing small business CGT concessions remain in place, and whether they apply in a particular situation is worth confirming with a Gold Coast business lawyer or tax adviser.
What this means for your will and estate plan
Wills drafted on the assumption that beneficiaries would sell inherited assets under the 50% discount regime may not deliver the outcome the person who wrote the will intended. The tax a beneficiary pays on selling an inherited investment property or share portfolio after 1 July 2027 could be meaningfully higher than it would have been under current law, reducing what the family actually receives. Reviewing your will with estate lawyers before the rules change is a practical first step.
Some of the questions worth considering now include:
- Does the will specify how any CGT liability is to be handled or who bears the cost?
- Are assets held in structures such as family trusts or companies that may be treated differently under the new rules?
- Would distributing assets in a different order or to different beneficiaries produce a better after-tax outcome for the family?
- Is the timing of a planned sale before or after 1 July 2027 worth modelling with a tax adviser?
The ATO’s guidance on deceased estates and CGT provides a starting point, though these are questions that benefit from specific advice from a Gold Coast solicitor and a tax professional.
Superannuation and estate planning on the Gold Coast
Superannuation sits outside the estate and is not governed by a will. It passes according to a death benefit nomination lodged with the super fund. Complying superannuation funds are not subject to the new 30% minimum tax and retain the existing one-third CGT discount, and Age Pension recipients are also exempt.
However, when super death benefits are paid to non-dependent beneficiaries such as adult children, a portion of the payout may be taxable in their hands. Combined with the new CGT treatment of assets held outside super, the relative tax advantage of keeping investments inside superannuation would be likely to increase if the legislation passes. Coordinating superannuation and estate planning is increasingly complex, and a Gold Coast lawyer experienced in wills and estates can help families structure their affairs effectively.
Now is the time to review your estate plan
What looked like settled tax rules for a generation are now shifting. From 1 July 2027, the tax a beneficiary would pay when selling an inherited investment property, shares or business interest could be substantially higher than it would have been under current law, and wills or estate plans built around the old rules may no longer deliver what was intended. Gold Coast families with investment assets would benefit from reviewing their position well before that date, ideally in consultation with a wills and estates lawyer and a tax adviser.
If your estate includes investment properties, shares or business interests, the CGT changes may alter the tax consequences of how those assets pass under your will or are distributed from your estate. QBM Lawyers can review your will and estate planning documents, advise on how Queensland succession law interacts with the new CGT regime, and help you understand your options before the changes take effect. Contact our team to arrange a confidential discussion about your matter.
Frequently Asked Questions
Not automatically at the point of inheritance. CGT is generally deferred until a beneficiary sells the asset. However, if the sale occurs after 1 July 2027, the gain accruing from that date would be subject to the new 30% minimum tax rather than the 50% discount. Depending on the size of the gain, this could result in a higher tax bill than under the current rules.
Yes. Trusts are within scope of the new rules, and gains flowing to individual beneficiaries from a trust would be subject to the 30% minimum tax on gains accruing from 1 July 2027. The full detail of how trusts will be treated is still to be confirmed in further legislation. Legal and financial advice is recommended for anyone holding significant assets in a family trust.
Complying superannuation funds are not subject to the new 30% minimum tax. Super is also paid outside a will, according to a death benefit nomination lodged with the fund. However, when super is paid to a non-dependent beneficiary such as an adult child, a portion of the payout may be taxable in their hands. This is a separate issue from CGT and worth discussing with a financial adviser.
Not necessarily, but it is worth reviewing. A will drafted on the assumption of a 50% CGT discount may not distribute assets in the way that makes most sense under the new rules. It is also worth checking whether the will addresses how any tax liability is to be handled and who bears the cost when an inherited asset is sold.
If passed, the new rules would apply to capital gains accruing from 1 July 2027. Gains that accrued before that date will still be assessed under the current 50% discount, so assets sold before 1 July 2027 are generally unaffected. The timing of any planned sale or restructure of holdings could have a meaningful impact on the tax outcome, which is why taking legal and financial advice well before that date is worth considering for anyone with significant investment assets.
