- Jurisdiction
- Australia
- Review date
- 24 June 2026
- Document type
- Evidence report, not advice
- Source posture
- Current checked sources only
Abstract
This report reviews capital gains tax when selling an investment property: 2026 evidence report for Australian property investors as at 24 June 2026. It uses ATO CGT rental-property guidance, ATO CGT calculation and cost-base guidance, ATO CGT discount guidance, ATO main-residence and foreign-resident pages, ATO clearance certificate guidance, the 2026-27 Budget tax-reform page, RBA cash-rate data, and ABS Lending Indicators.
As at 24 June 2026, the defensible sale workflow is to model current-law CGT before signing the contract, then run separate checks for cost-base records, ownership share, residency, clearance certificates, main residence claims, and the announced but not-yet-law 2027 reform.
Simple explanation
A sale model should not start with the loan balance. It should start with the contract date, sale proceeds, cost base, ownership share, discount rules, main residence facts, withholding, and tax cash timing.
Figures
RBA Cash Rate Target, checked 24 June 2026
Sale proceeds $900,000
Amount received in the ATO example
Cost base $756,000
After additions and required reductions
Gross gain $144,000
Before the 50% discount
Discounted gain $72,000
Before splitting by ownership share
Karl and Louisa ATO example: $900,000 sale proceeds, $756,000 cost base, $144,000 gross capital gain, and $72,000 discounted capital gain before co-owner allocation.
Purchase price $750,000
Start with amount paid
Add costs $46,000
Purchase, fence, and sale costs
Subtract deductions $40,000
Capital works plus decline in value
Cost base $756,000
Final ATO example cost base
Positive bars show amounts to trace. The model action says whether the amount is added, subtracted, or used as the final cost base.
Resident individual 50%
If 12-month ownership test is met
Complying super fund 33.33%
Eligible fund discount
Company 0%
Companies do not get the CGT discount
Full foreign resident discount 0%
Full discount is generally unavailable for post-8 May 2012 gains
ATO CGT discount guidance states 50% for eligible Australian resident individuals and trusts, 33.33% for complying super funds, and no CGT discount for companies.
Sale price $650,000
ATO Maisie and Max example
Withheld total $97,500
15% where no valid certificates are provided
Each owner $48,750
Withheld credit per joint vendor in the example
ATO example: on a $650,000 sale, no certificates for two resident vendors means $97,500 is withheld, or $48,750 each.
Discount test 12
Months held, excluding acquisition and CGT-event days
Certificate processing 28
ATO says processing can take up to 28 days
Record retention 5
Years after property disposal
Former home absence 6
Years if used to produce income and rule conditions are met
Figures are rule-check reminders: 12 months for the basic discount test, up to 28 days for certificate processing, and at least 5 years for property records after disposal.
Current discount 50%
Eligible resident individuals, current law
Proposed minimum 30%
Minimum tax rate in announced reform
Company discount 0%
No CGT discount under current guidance
Budget 2026-27 says the government intends to replace the 50% discount with inflation indexation and a 30% minimum tax rate for gains after 1 July 2027. The ATO says the measure is not yet law.
Total dwellings 139,794
Quarterly change: -6.2%
Owner occupiers 82,453
Quarterly change: -6.9%
Investors 57,342
Quarterly change: -5.3%
First home buyers 30,241
Quarterly change: -4.3%
Number of new loan commitments for dwellings in March Quarter 2026.
1. Scope and Method
This section explains the source base and the limits of the report.
This report is limited to Australian property, lending, tax, and retirement planning material checked on 24 June 2026. It states general decision rules only. It does not calculate a personal advice outcome.
Official and public sources are used for rule statements and current data. Reddit, forums, and search themes are used only to identify common questions. They are not used as proof of law, tax treatment, or market fact.
References: [1][2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18]
| Evidence type | Use in this report | Limit | Refs |
|---|---|---|---|
| Official guidance | ATO CGT rental-property guidance, ATO CGT calculation and cost-base guidance, ATO CGT discount guidance, ATO main-residence and foreign-resident pages, ATO clearance certificate guidance, the 2026-27 Budget tax-reform page, RBA cash-rate data, and ABS Lending Indicators | Used for rule statements, definitions, and current settings. | [1][2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18] |
| Market and statistical data | RBA, ABS, APRA, Services Australia, and state revenue pages are used where relevant. | Used as current context, not as a forecast. | [1][2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18] |
| Forum and search themes | Used to find common investor questions and confusing terms. | Not used as factual authority. |
2. Evidence Snapshot
As at 24 June 2026, the defensible sale workflow is to model current-law CGT before signing the contract, then run separate checks for cost-base records, ownership share, residency, clearance certificates, main residence claims, and the announced but not-yet-law 2027 reform.
The evidence is read conservatively. A claim is included only when it can be linked to a checked source or is clearly labelled as an illustrative modelling step.
References: [1][2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18]
| Topic | Checked position | Model action | Refs |
|---|---|---|---|
| Rental property sale is a CGT event | ATO guidance states that selling or otherwise disposing of a rental property can create a capital gain or capital loss. | Open a CGT file before listing the property and do not treat the gross sale price as the after-tax result. | [1] |
| Gain starts with proceeds and cost base | ATO guidance calculates the capital gain or loss by comparing capital proceeds with the property cost base or reduced cost base. | Build the model from proceeds, cost base, reduced cost base, and ownership share before estimating tax. | [1][2] |
| Net gain and net loss treatment | ATO guidance says a net capital gain is generally included in tax, while a net capital loss is carried forward and used against later capital gains. | Do not use a property capital loss as an ordinary salary or rent deduction in the sale model. | [1][2] |
| Contract date sets the tax year | ATO CGT guidance says the CGT event for a property sale is generally when the contract is entered into, not settlement. | Set the income year from exchange date and run a special check for contracts signed close to 30 June. | [1][6][2] |
| Settlement cash is not the tax date | ATO examples show a sale contract before 30 June with settlement after 30 June can still belong in the earlier income year. | Reserve tax cash using the contract year, even if the sale proceeds arrive in a later month. | [1][2] |
| Co-owner allocation | ATO guidance allocates each co-owner capital gain or capital loss according to legal ownership interest, including tenants in common shares. | Match the sale model to title ownership and do not split the gain based only on who paid expenses. | [1] |
| Pre-CGT property is not a simple ignore rule | ATO guidance says property acquired before 20 September 1985 is generally pre-CGT, but certain post-1985 capital improvements can still matter. | Keep a separate improvement file for pre-CGT property and test whether later capital improvements have their own CGT treatment. | [1][4] |
| Cost base has five elements | ATO cost-base guidance lists five elements, including acquisition cost, incidental costs, certain ownership costs, capital improvement costs, and title-defence costs. | Use the five-element structure instead of a loose folder of receipts. | [3] |
| Common included sale costs | ATO rental-property CGT guidance includes examples such as legal fees, stamp duty, and real estate agent commissions as relevant cost-base items where the rules allow. | Trace purchase settlement, duty, legal, marketing, agent, valuation, title-search, and sale settlement records. | [1][3][4] |
| Deductible costs are excluded | ATO guidance states that the cost base does not include amounts already claimed or that could be claimed as a tax deduction. | Reconcile tax returns and depreciation schedules before adding any holding or works costs to cost base. | [1][3] |
| Capital works can reduce cost base | ATO capital-works guidance says capital works deductions generally cannot be included in cost base or reduced cost base. | Subtract capital works deductions claimed or claimable where the ATO rules require it. | [5] |
| Decline-in-value deductions can matter | ATO rental-property examples reduce the cost base for decline-in-value deductions and capital works deductions before calculating the gain. | Reconcile plant, equipment, and capital works schedules before giving the sale estimate to the owner. | [1][5] |
| ATO worked example gives a benchmark | In the ATO Karl and Louisa example, $900,000 sale proceeds and a $756,000 cost base produce a $144,000 gross capital gain and a $72,000 discounted gain. | Use the example as a calculation pattern, then replace every number with the property-specific file. | [1] |
| Market value can replace actual cash | ATO calculation guidance says market value can be used for capital proceeds when an asset is given away or sold below market value to a friend. | Flag related-party sales, family transfers, and non-arm-length transactions for valuation review. | [2] |
| Capital losses come before discount | ATO calculation guidance applies capital losses before the CGT discount when working out the net capital gain. | Apply carried-forward and current-year capital losses before applying discount percentages. | [2][6] |
| 12-month discount test is strict | ATO CGT discount guidance requires ownership for at least 12 months and says to exclude both the acquisition day and the CGT event day. | Test the exact dates before assuming the 50% discount applies. | [6] |
| Discount depends on tax profile | ATO guidance states that eligible Australian resident individuals and trusts can access the 50% discount, complying super funds can access 33.33%, and companies cannot use the CGT discount. | Run a separate sale model for individual, trust, company, and SMSF ownership where relevant. | [6] |
| Foreign and temporary resident discount limits | ATO CGT discount guidance states that foreign or temporary residents cannot claim the full 50% discount for gains after 8 May 2012 and may need an apportioned approach. | Set tax residency periods before estimating the discount on any cross-border sale. | [6] |
| Main residence exemption is fact-sensitive | ATO main-residence guidance provides a general exemption for a main residence, but other ATO pages set limits when the home is rented, used for business, or sold by a foreign resident. | Document occupation dates, rental dates, business use, and residency before claiming a full exemption. | [7][8][9][12] |
| Former-home 6-year rule | ATO guidance says a former home used to produce income can sometimes continue to be treated as the main residence for up to 6 years, subject to conditions and choices. | Treat the 6-year rule as a calculation election, not as an automatic label on every former home. | [8] |
| Only one main residence generally counts | ATO guidance says a taxpayer generally cannot treat another property as the main residence for the same period, except for limited moving-home overlap. | Check whether another home was nominated or owned during the absence period. | [8] |
| Part-home rental creates partial CGT | ATO guidance says renting out part of a home or using it for business can prevent a full main residence exemption and can require floor-area and time apportionment. | Record rooms, floor area, dates, and income-producing use rather than relying on a full-exemption assumption. | [9] |
| First income use can set market value | ATO home-rental guidance says a market value at first income use can be needed when a home first starts producing income after 20 August 1996. | Obtain or support a market valuation for the first income-producing date where the rule applies. | [9][4] |
| Foreign resident main residence restriction | ATO guidance says foreign residents generally cannot claim the main residence exemption for property sold after 30 June 2020 unless the life events test is satisfied. | Confirm tax residency on the contract date before relying on a main residence exemption. | [12] |
| Clearance certificate is now a settlement workflow | ATO guidance says Australian resident vendors need a valid clearance certificate at or before settlement, otherwise the purchaser must withhold from the sale proceeds. | Apply for a certificate as soon as selling is being considered and track one certificate per vendor. | [11][10] |
| Current withholding rate | ATO foreign-resident withholding guidance states that from 1 January 2025 a 15% rate applies to the value of all property. | Stress test settlement cash assuming 15% is withheld if a certificate is missing or invalid. | [10][11] |
| Certificate processing and validity | ATO guidance says clearance certificate processing can take up to 28 days and certificates are valid for 12 months if residency status does not change. | Put the certificate application in the pre-listing checklist rather than the settlement checklist. | [11] |
| Records are a tax asset | ATO property record guidance says buying, owning, and selling records should generally be kept for at least 5 years after the property is disposed of. | Keep sale records in the property file after settlement instead of closing the file when cash arrives. | [4] |
| 2027 reform is not current law | The ATO new-legislation page says the announced negative gearing and CGT reform is not yet law, while the Budget page says the CGT changes are intended from 1 July 2027. | Model current law first and keep any 2027 reform result as a separate scenario until legislation is final. | [13][14] |
| Reform would tax only future gains | Budget 2026-27 states the CGT reforms will only apply to gains arising after 1 July 2027, with new-build investors able to choose the 50% discount or the new arrangements. | For post-2027 decisions, split the model into current-law gain, post-2027 gain, and new-build choice where relevant. | [14][15] |
| Lending context remains material | ABS March Quarter 2026 Lending Indicators reported 57,342 investor dwelling commitments and $41.5 billion in investor commitment value, excluding refinancing. | Use current lending context as background only. Do not infer a property-specific sale price from aggregate lending data. | [16] |
| Debt context remains material | RBA cash-rate data recorded a 4.35% target on 17 June 2026, making holding-cost sensitivity a live input for investor sale choices. | Compare after-tax sale proceeds with the cash-flow cost of holding at the current debt setting. | [17] |
3. Current Trends and Hot Topics
This section records issues that are current enough to change a buyer workflow, while avoiding forecasts.
A trend is included only when it changes a document check, cash buffer, timing assumption, or adviser question.
References: [1][2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18]
| Current issue | Observed position | Report action | Refs |
|---|---|---|---|
| June contract timing trap | Forum and search themes repeatedly ask whether tax follows settlement date. ATO guidance points to contract date for most property sales. | Create a 30 June timing row in every sale model, especially for auctions, delayed settlements, and conditional contracts. | [1][6] |
| Clearance certificates moved into ordinary sales | Search and Reddit themes in 2025 and 2026 show confusion about clearance certificates because the current ATO rate is 15% for all property values from 1 January 2025. | Treat the certificate as routine settlement infrastructure, not as a foreign-vendor-only edge case. | [10][11] |
| 2027 reform timing questions | Recent Reddit discussions focus on whether to sell before or after 1 July 2027. Official sources state the reform is not yet law and would apply to gains after that date if enacted. | Separate political discussion from calculation. Show a current-law result and a labelled reform scenario. | [13][14] |
| New-build CGT choice | Budget 2026-27 says investors in new builds will be able to choose the 50% CGT discount or the new arrangements under the announced reform. | For new-build investors, add a future-law choice row instead of assuming one tax pathway. | [14][15] |
| Cost-base reconstruction | Forum questions often focus on missing purchase files, depreciation schedules, renovation invoices, and sale-cost records. ATO record guidance lists the records to keep. | Start reconstruction before agency appointment, because missing records usually create a conservative tax estimate. | [4][3] |
| Depreciation and capital works clawback language | Property forums often ask whether depreciation is added back. ATO language is more precise: deductible capital works generally cannot be included in cost base, and decline-in-value deductions can reduce the example cost base. | Use the ATO terms in the report and attach the depreciation schedule to the sale file. | [1][5] |
| 6-year rule overconfidence | Reddit and forum discussions often treat the former-home rule as automatic. ATO guidance frames it as a rule with conditions, choices, and limits. | Ask for occupation dates, rental dates, other main residence facts, and whether the absence choice is actually beneficial. | [8] |
| Part-home rental and room-by-room history | Search themes around room rental, short stays, and work-from-home often miss the floor-area and time-apportionment issue in ATO guidance. | Store rental floor area, business floor area, days used, and valuation evidence as structured fields. | [9] |
| Foreign resident status at disposal | Forum themes often mix visa status, tax residency, and residence exemption. ATO guidance focuses on tax residency at the CGT event and the foreign-resident main-residence restriction. | Run a tax-residency check before giving any main-residence conclusion. | [6][12] |
| Entity choice after the property is already owned | Investors ask whether company or trust ownership improves CGT. ATO discount guidance shows discount access differs by entity type. | Show entity-specific CGT assumptions and avoid implying a transfer can fix an existing tax profile without new tax costs. | [6][2] |
| Capital loss myths | Search themes show investors asking whether a property loss can reduce salary or rental income. ATO guidance carries net capital losses forward against later capital gains. | Keep capital losses in the capital-gains schedule, not the ordinary-income forecast. | [2] |
| Related-party transfer questions | ATO guidance says market value can be used where an asset is given away or sold below market value to a friend. | Treat family transfers as valuation and tax-advice cases before contract terms are set. | [2] |
| Pre-CGT improvement questions | ATO rental-property and record guidance makes pre-20 September 1985 property more nuanced when later capital improvements are present. | Preserve improvement dates and costs even when the land was acquired before CGT started. | [1][4] |
| High-rate hold versus sell comparison | RBA cash-rate data and ABS investor-lending activity make holding-cost pressure relevant, but neither source predicts an individual property outcome. | Compare current holding cost, sale tax, refinance capacity, and replacement property costs in one table. | [17][16] |
| Gross price marketing versus after-tax proceeds | Moneysmart investment-property guidance treats property investing as a cost and risk decision, not only a sale-price story. | Report sale price, debt payout, selling costs, tax provision, withholding risk, and investable cash separately. | [18][1] |
4. Stress Tests
A useful report shows what can go wrong before it recommends a next step.
The stress tests below are deliberately simple. They are designed to stop a single attractive number, such as a low rate, tax deduction, or high rent estimate, from carrying the whole decision.
| Stress test | Question answered | Conservative action | Refs |
|---|---|---|---|
| Exchange before 30 June, settlement after 30 June | Would the owner accidentally place the gain in the earlier income year because contract date controls the CGT event? | Run two tax-year cash-flow cases and ask the tax adviser to confirm timing before exchange. | [1][2] |
| Asset held just under 12 months | Does excluding acquisition day and CGT event day fail the 12-month discount test? | Run a no-discount scenario and compare against a delayed sale only if commercial terms allow. | [6] |
| Company owner | Would a company owner lose the CGT discount entirely? | Use a company-specific tax model and do not copy the individual-owner discount rate. | [6] |
| Foreign resident on contract date | Would foreign-resident discount limits or the main residence restriction change the result? | Set tax residency status for the CGT event date before using any exemption or discount. | [6][12] |
| No clearance certificate by settlement | Would 15% of the sale proceeds be withheld because the Australian resident vendor did not provide a valid certificate? | Reserve settlement cash under the 15% withholding case until the certificate is confirmed. | [11][10] |
| Missing purchase settlement file | Would the cost base be understated because purchase contract, duty, legal, and settlement statement records are missing? | Reconstruct from conveyancer, state revenue, lender, bank, and archived tax records before relying on the estimate. | [4][3] |
| Capital works not reconciled | Would the model overstate cost base by including amounts claimed or claimable as capital works deductions? | Cross-check depreciation and capital works schedules against every cost-base line. | [5][1] |
| Wrong ownership split | Would the model split the gain 50:50 even though title or tenants-in-common shares differ? | Use title ownership as the base allocation and attach title evidence to the report. | [1] |
| Former home rented longer than 6 years | Would the owner assume the full main residence exemption still applies after the income-producing absence cap is exceeded? | Run a partial exemption calculation for the non-exempt period and keep the election decision explicit. | [8] |
| Part of home rented out | Would a room, granny flat, studio, or business area create a partial CGT exposure? | Model floor area, days used, first-income-use value, and deductions claimed. | [9] |
| Related-party sale below market | Would the ATO market-value rule replace the actual transfer price? | Obtain valuation support before transfer and do not rely on the cash price alone. | [2] |
| No tax cash reserve | Would the owner spend the sale proceeds before the tax bill is assessed? | Hold a tax reserve based on the conservative model until the return is lodged and assessed. | [2] |
| Loss expected but gain arises after deductions are removed | Would removing deductible capital works or decline-in-value amounts turn a low-gain estimate into a larger gain? | Run the model both before and after required cost-base reductions and keep the after-reduction case as the base case. | [1][5] |
| GST edge case | ATO rental-property guidance notes GST is generally not payable on existing residential premises, but GST can apply to new residential premises or vacant land. | Flag new residential premises, development stock, vacant land, and enterprise facts for tax-advice review. | [1] |
| Future reform enacted before sale | Would a sale after 1 July 2027 fall partly under enacted CGT reform if the announced measure becomes law? | Keep a current-law model and a reform scenario until final legislation and ATO tools are available. | [13][14][15] |
5. Portfolio Workflow
The workflow keeps tax, debt, cash flow, and exit risk in the same file.
The same workflow should be repeated before acquisition, refinance, renovation, sale, or retirement planning. This keeps the report predictable across the full portfolio.
| Step | Do this | Evidence to keep | Refs |
|---|---|---|---|
| Create the sale evidence file | Store purchase contract, purchase settlement, sale contract, sale settlement, duty, legal, agent, marketing, valuation, title, and loan payout records. | Use one dated folder for each property and retain it after sale for the ATO record period. | [4][3] |
| Set the CGT event date | Use contract date for most property sales and note settlement date separately for cash-flow timing. | Label the income year before calculating discount, losses, and tax cash reserve. | [1][2] |
| Confirm owner profile | Record individual, trust, company, SMSF, joint tenant, tenants-in-common, Australian resident, foreign resident, and temporary resident status. | Use owner profile to set discount rate, exemption access, and withholding workflow. | [6][1][12][11] |
| Build the five-element cost base | Map each cost to acquisition cost, incidental cost, ownership cost, improvement cost, or title-defence cost where the ATO rule allows. | Reject vague labels such as other costs until they are matched to evidence and rule treatment. | [3] |
| Reconcile deductions | Compare the cost base against tax returns, depreciation schedules, capital works claims, and rental expense claims. | Remove costs that were claimed or could be claimed as deductions before calculating the base case. | [1][5] |
| Calculate gross gain or loss | Subtract the cost base or reduced cost base from capital proceeds, using market value where ATO rules require it. | Create a simple proceeds minus cost-base line before applying losses, discounts, or exemptions. | [2][3] |
| Apply losses and discounts in order | ATO calculation guidance applies capital losses before discount and carries forward unused net capital losses. | Show current-year gains, carried-forward losses, remaining gains, discount, and net capital gain as separate lines. | [2][6] |
| Test main residence claims | Check actual occupation, former-home absence, rental use, business use, foreign-resident rules, and any first-income-use valuation. | Use a main-residence worksheet instead of a yes or no checkbox. | [7][8][9][12] |
| Apply for clearance certificates early | ATO guidance says certificate processing can take up to 28 days and the purchaser withholds if a valid certificate is not provided by settlement. | Track application date, certificate date, vendor name match, expiry date, and settlement delivery. | [11] |
| Run current-law and future-law cases separately | ATO says the 2027 CGT reform measure is not yet law, while Budget 2026-27 describes the intended reform design. | Label future-reform outputs as scenarios and do not mix them into the current-law tax estimate. | [13][14][15] |
| Set the tax cash reserve | The net cash available after sale differs from gross price because debt payout, sale costs, tax, and possible withholding all happen on different clocks. | Hold a conservative reserve before repaying private debt, gifting funds, or committing to a new purchase. | [2][10][18] |
| Compare sell, hold, and refinance | RBA cash-rate data and ABS investor lending data describe current debt and market context but do not decide the individual outcome. | Compare after-tax sale proceeds with hold cost, refinance capacity, rent evidence, vacancy risk, and replacement property costs. | [17][16][18] |
| Adviser review before unconditional exchange | CGT, withholding, GST, residency, main-residence, and reform timing can all change the after-tax answer. | Ask the tax adviser to review the file before the contract becomes unconditional where practical. | [1][2][11][12] |
6. Limits and Claim Map
The report supports analysis, not personal financial, tax, legal, or credit advice.
The safest reading is cautious. Use this report to structure questions, identify missing evidence, and prepare adviser conversations. Do not treat it as an approval, forecast, valuation, or tax ruling.
References: [1][2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18]
| Claim | Evidence used | Status | Refs |
|---|---|---|---|
| CGT should be modelled before contract signing. | ATO guidance links CGT timing to contract date and uses proceeds, cost base, losses, and discounts to calculate the result. | Supported. The page treats pre-contract modelling as the core workflow. | [1][2][6] |
| A sale price is not the same as investable cash. | ATO CGT and clearance-certificate guidance show that tax and withholding can affect sale cash flow, while Moneysmart frames property investing as a cost and risk decision. | Supported as a cash-flow modelling claim, not as a forecast. | [1][11][18] |
| The 50% CGT discount is conditional. | ATO guidance sets ownership period, residency, and entity-type limits on discount access. | Supported. The model must test dates, residency, and owner type. | [6] |
| Capital works and depreciation records can change the result. | ATO guidance excludes deductible amounts from cost base and shows examples where capital works and decline-in-value deductions reduce the cost base. | Supported. Deduction reconciliation is mandatory before relying on the estimate. | [1][5] |
| A former home is not automatically CGT-free forever. | ATO former-home guidance sets a 6-year income-producing absence rule, election choices, and limits where another main residence is involved. | Supported. The exemption needs an occupation and rental timeline. | [8] |
| Part-home rental and business use can create partial CGT. | ATO guidance says renting out part of a home or using it for business can reduce the main residence exemption and require apportionment. | Supported. Room, floor-area, business-use, and date records are needed. | [9] |
| Foreign resident status can remove expected exemptions. | ATO guidance restricts main residence exemption access for foreign residents and limits full CGT discount access for gains after 8 May 2012. | Supported. Residency must be checked at the CGT event date. | [12][6] |
| Clearance certificates are now ordinary seller hygiene. | ATO guidance says from 1 January 2025 the 15% withholding rate applies to the value of all property, and resident vendors need valid clearance certificates to avoid withholding. | Supported. Certificate tracking belongs in the pre-listing workflow. | [10][11] |
| The 2027 CGT reform should not be treated as current law. | The ATO says the announced reform is not yet law, while Budget 2026-27 describes a future intended start from 1 July 2027. | Supported. Keep reform outputs as labelled scenarios. | [13][14] |
| Aggregate market data does not prove an individual sale outcome. | ABS lending data and RBA cash-rate data provide current context only. | Supported. Use aggregate data for context and property-specific evidence for recommendations. | [16][17] |
References
- [1] ATO: Capital gains tax when selling your rental property Checked 24 June 2026
- [2] ATO: How to calculate your CGT Checked 24 June 2026
- [3] ATO: Cost base of assets Checked 24 June 2026
- [4] ATO: Keeping records for property Checked 24 June 2026
- [5] ATO: Cost base adjustments for capital works Checked 24 June 2026
- [6] ATO: CGT discount Checked 24 June 2026
- [7] ATO: Your main residence - home Checked 24 June 2026
- [8] ATO: Treating your former home as your main residence Checked 24 June 2026
- [9] ATO: Using your home for rental or business Checked 24 June 2026
- [10] ATO: Foreign resident capital gains withholding overview Checked 24 June 2026
- [11] ATO: Australian residents and clearance certificates Checked 24 June 2026
- [12] ATO: Main residence exemption for foreign residents Checked 24 June 2026
- [13] ATO: Reforming negative gearing and capital gains tax Checked 24 June 2026
- [14] Australian Government Budget 2026-27: Tax reform Checked 24 June 2026
- [15] Australian Government Budget 2026-27: Negative gearing and CGT explainer Checked 24 June 2026
- [16] ABS: Lending Indicators, March Quarter 2026 Checked 24 June 2026
- [17] RBA: Cash Rate Target Checked 24 June 2026
- [18] Moneysmart: Buying an investment property Checked 24 June 2026