Australia Moves to Inflation-Indexed Capital Gains Tax From July 2027

Starting 1 July 2027, Australia will replace its fixed 50% capital gains discount—unchanged since 1999—with an inflation-indexed model. The shift means only real, inflation-adjusted gains face taxation, a structural principle economists have advocated for decades. Treasury must consult on the precise formula before implementation; in low-inflation periods, the discount could fall below 50%, creating uncertainty for business succession planning.