CGT Discount Changes 2027: What Property Sellers Need to Know

Published August 2026

If you’re holding an investment property in NSW, or thinking about purchasing an investment property in NSW, a change to the CGT discount calculation, that’s now law, is worth understanding well before you think about acting. The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 passed both houses of Parliament on 25 June 2026 and received royal assent on 26 June 2026. From 1 July 2027, it replaces the 50% capital gains tax (CGT) discount that’s applied to individuals, trusts and partnerships since 1999 with a cost base indexation model and a new 30% minimum tax rate. Although this post is framed around property, , not just real estate, including shares, ETFs, managed funds and cryptocurrency. This post explains what’s changing, how the transition works for property you already own or are about to buy, and what it means for the timing of a purchase or a future sale.

What About My Main Residence?

Your main residence exemption is unaffected. The reform is aimed at investment and other CGT assets, and principal residences remain fully exempt from CGT. This is relevant to sellers of investment properties, not to a straightforward sale of your own home.

What’s Changing?

Since 1999, individuals, trusts and partnerships who’ve held a CGT asset, including an investment property, for more than 12 months have been able to disregard 50% of the capital gain when working out their tax. From 1 July 2027, that discount is removed and replaced with a return to the pre-1999 system: cost base indexation.

Under indexation, rather than automatically excluding half the gain, your original purchase price (plus eligible costs) is adjusted upward for inflation (CPI) before the gain is calculated. Only the “real,” inflation-adjusted gain is taxed, not the full nominal gain, but not half of it either.

How Cost-Base Indexation Works

Indexation changes the shape of the calculation rather than applying a flat discount. As an illustration, a property bought for $1,000,000 and sold five years later for $1,500,000 might have an indexed cost base of roughly $1,130,000 at a modest inflation rate, meaning the taxable gain becomes around $370,000, rather than the full $500,000 nominal gain. Whether that leaves you better or worse off than the old 50% discount depends heavily on how long you’ve held the property and how much inflation has moved in that time. There’s no single answer, which is exactly why this is worth modelling with your accountant well before you list.

The 30% Minimum Tax Rate

Alongside indexation, a 30% minimum tax rate applies to the post-reform portion of capital gains from 1 July 2027, regardless of your marginal tax rate for that income year. In practice, this mainly affects people in tax brackets below 30%, for example, those planning to sell in a lower-income year, such as a career break, early retirement before pension age, or a stay-at-home parent. Under the old rules, timing a sale for a low-income year reduced the tax payable; under the new rules, the 30% floor limits how much benefit that timing strategy provides.

There is a welfare exemption, but it’s narrower than “exempt from the changes”: recipients of specified payments, including the Age Pension, JobSeeker and Disability Support Pension, are exempt from the 30% minimum tax specifically. That is, they would pay tax at their marginal tax rate (whatever that may be), but they still lose access to the 50% discount, and their gain is still calculated under indexation. It’s an exemption from the floor, not a full carve-out from the reform.

Grandfathering: What Happens to Property You Already Own?

This is the part that matters most if you’re currently holding an investment property, and the rules turn on two separate dates: when you bought the property, and when you sell it.

If you acquire the property before 1 July 2027 and sell it after that date, your gain is split into two portions. The portion that accrued before 1 July 2027 still receives the 50% discount, unchanged. The portion that accrues from 1 July 2027 onward is taxed under the new indexation model and the 30% minimum rate.

If you acquire the property on or after 1 July 2027, there is no pre-reform portion to split out. The entire gain, from purchase to eventual sale, is taxed under the new indexation and 30% minimum tax rules, with no 50% discount available at all. So yes, there is a hard cutoff: to access any benefit of the old 50% discount, you need to already own the property before 1 July 2027. New residential dwellings are the one exception to this cutoff: for a new-build purchase, whenever it’s acquired, investors can elect either the discount or indexation model on the full gain, whichever proves more favourable. That election is only available for new residential dwellings, not for established property.

For property held across the transition date, the law treats it as a deemed disposal and reacquisition at 1 July 2027, so you’ll need to establish the property’s value as at that date, either through a formal valuation or an apportionment formula based on historical growth rates. Getting a formal, documented valuation around that date, rather than relying on the apportionment formula, is worth considering: one detailed industry analysis of the final legislation notes it’s “far cheaper to secure that evidence now than to reconstruct it at a sale in the 2030s”, and that if too much of the gain ends up attributed to the post-1 July 2027 period by default, you face more exposure to the new indexation and 30% minimum tax regime than a documented valuation might otherwise support.

This Is Now Law, Not Just a Budget Proposal

Because this started life as a 2026 Federal Budget announcement, it’s worth being clear that it’s since passed Parliament and been assented into law as the Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (Act No. 49 of 2026), alongside the related Income Tax Rates Amendment (Tax Reform No. 1) Act 2026. The Senate did make a number of amendments to the original May 2026 Budget proposal before passage, including hardcoding the welfare exemption list into the legislation itself rather than leaving it to ministerial discretion, and lifting the small business active-asset threshold. We’ll keep this post updated if the ATO issues further guidance ahead of 1 July 2027. As always, we’re conveyancers, not tax advisers: this post is general information, not advice, so please talk to your accountant about how this applies to your specific situation.

What This Means for Your Settlement Timing

If you’re weighing up buying or selling an investment property before or after 1 July 2027, the earlier you start that conversation with your accountant, the more options you have around settlement timing, including planning now for the formal valuation you’ll need to obtain at the 1 July 2027 transition date, for any property you already hold. As your conveyancer, we can work with you and your accountant on settlement timing once you’ve decided on a course of action, whichever side of the transaction you’re on.

Thinking about buying or selling an investment property, or want to talk through timing? Get in touch, we’re happy to have that conversation alongside your accountant.

ConveyAbility — 100 Queenscliff Road, Queenscliff NSW 2096

First Home Buyers in NSW: Assistance Schemes You Might Be Eligible For

Published August 2026

Buying your first home comes with more government assistance than most people realise; some from the NSW Government, some from Canberra, and in a lot of cases you can combine more than one. Here’s a rundown of what’s currently available, who qualifies, and what it’s worth. Thresholds and settings are reviewed periodically, so treat this as a starting point and confirm your own position with us or the relevant scheme before relying on any figure below.

Transfer Duty Relief: The First Home Buyers Assistance Scheme

The First Home Buyers Assistance Scheme (FHBAS) is the main way first home buyers save money in NSW; a full or partial exemption from transfer duty, which most people still call stamp duty.

For contracts exchanged on or after 1 July 2023: a new or existing home valued up to $800,000 attracts no transfer duty at all. Between $800,000 and $1,000,000, a concessional rate applies on a sliding scale. Buying vacant land to build on? Full exemption up to $350,000, concessional rate up to $450,000.

To qualify, you (and your spouse or partner, if you have one) must never have owned residential property in Australia, must be buying as an individual rather than through a company or trust, and need to move in within 12 months of settlement and live there as your principal place of residence for at least 12 continuous months. At least one applicant must be an Australian citizen or permanent resident.

Who handles it: FHBAS is administered by Revenue NSW, but the application is lodged through your conveyancer or solicitor as part of your settlement paperwork. As your conveyancer, we can confirm your eligibility, work out what you’ll pay, and lodge it on your behalf.

The First Home Owner Grant — an Extra $10,000, New Homes Only

Separately from FHBAS, a $10,000 First Home Owner Grant is available for new homes. That covers a house, townhouse, apartment or similar that’s newly built, bought off the plan, or substantially renovated — established homes don’t qualify.

There’s a price cap: $600,000 for a home that’s already built, or $750,000 combined if you’re buying land and building under a home building contract (including variations). The same 12-month move-in and 12-month residency rules apply as FHBAS — and importantly, the two aren’t mutually exclusive. You can receive the Grant on top of your FHBAS exemption or concession.

Who handles it: the Grant is also administered by Revenue NSW, but the application is lodged through your bank or lender as an approved agent when you arrange finance — not through your conveyancer. If you’ve already settled or finished construction without applying at that point, you can lodge it yourself through the FHOG customer portal.

Only Have a 5% Deposit? The Australian Government 5% Deposit Scheme

Formerly known as the Home Guarantee Scheme, this federal scheme lets eligible first home buyers purchase with as little as a 5% deposit (2% for single parents or legal guardians), with the government guaranteeing the rest so you avoid paying Lenders Mortgage Insurance.

The scheme expanded significantly from 1 October 2025 — income caps and the annual limit on scheme places were both removed, so there’s no waitlist and no income test. A property price cap still applies and depends on location: in Sydney and the designated regional centres (Central Coast, Newcastle and Lake Macquarie, Illawarra, Coffs Harbour–Grafton, Mid North Coast, and Richmond–Tweed) it’s $1,500,000; elsewhere in NSW it’s $800,000. You apply through a participating lender as part of your home loan application, not through us or Revenue NSW.

Who handles it: the scheme is run by Housing Australia, with applications made through a participating lender as part of your loan approval.

Still Short on Deposit? The Australian Government Help to Buy Scheme

Help to Buy is a newer shared equity scheme: you contribute a minimum 2% deposit, and the government contributes up to 30% of the purchase price for an existing home, or up to 40% for a newly built home, in exchange for a proportional equity share. Applications opened on 5 December 2025, with 10,000 places available each year.

There’s an income test — taxable income at or below $103,000 for an individual applicant, or $165,000 for a single parent or joint applicants, for the 2026 financial year — and you’ll need to be an Australian citizen. You can still claim FHBAS or the First Home Owner Grant alongside Help to Buy, since those are state-based concessions rather than Commonwealth loans or guarantees. Like the 5% Deposit Scheme, this one is arranged through a participating lender.

Who handles it: Help to Buy is also run by Housing Australia, with applications made through a participating lender.

Building Your Deposit: First Home Super Saver Scheme

If you’re still saving, the First Home Super Saver Scheme lets you make voluntary contributions into your super — taxed at the concessional super rate rather than your marginal rate — and later withdraw them, plus a notional earnings amount, to put toward your deposit. You can contribute up to $15,000 per financial year, to a lifetime cap of $50,000. One thing worth planning for: you need a determination from the ATO before you sign a contract, so this needs a bit of lead time.

Who handles it: the ATO. You request your determination through ATO online services via myGov, and arrange contributions with your super fund — no lender or conveyancer involved here.

What This Means for Your Purchase

Combining more than one of these is common — most often FHBAS with either the First Home Owner Grant or the 5% Deposit Scheme. Working out which combination applies to you is something we’re happy to talk through as part of your matter. FHBAS, in particular, is lodged through your conveyancer alongside your other settlement paperwork, so it’s worth raising your eligibility with us early, ideally before you exchange contracts. The Grant and the federal schemes are arranged through your lender or, for the Super Saver Scheme, the ATO directly — but we can still help you work out where you stand before you get there.

Not sure what you’d qualify for? Get in touch before you sign anything — we’re happy to talk it through.

ConveyAbility — 100 Queenscliff Road, Queenscliff NSW 2096

New Anti-Money Laundering Rules for Conveyancers: What This Means for You

Published July 2026

Since 1 July 2026, new federal laws have changed the way conveyancers across Australia onboard clients and open new matters. If you are planning a property purchase or sale — or are already in the middle of one with us — this post explains what has changed, why it happened, and what you will need to have ready.

What Is Changing?

Australia has extended its Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws to cover professional service providers for the first time. Until now, these rules applied mainly to banks, financial institutions, and casinos. From 1 July, conveyancers, lawyers, accountants, real estate agents, and dealers in precious metals and stones are captured as well.

The government agency responsible is AUSTRAC — the Australian Transaction Reports and Analysis Centre. For NSW conveyancers, verifying who we are acting for is not new — we have long been required to carry out VOI for NSW Land Registry Services and Revenue NSW. What is new under this framework is that conveyancers have become what the law calls “reporting entities,” which means we are now also obligated to understand the nature of the transaction and — in certain circumstances — report activity to AUSTRAC.

These reforms are known as the Tranche 2 AML/CTF changes, and they have been a long time coming. Australia had lagged behind comparable countries in bringing professional service providers into the AML/CTF regime, and was rated one of the worst-performing developed countries for real estate money-laundering safeguards. The reforms bring us into line with international standards.

Why Does Property Matter for Money Laundering?

Real estate has long been identified as one of the most attractive vehicles for money laundering. Large sums can move through property transactions in ways that are harder to trace than cash, particularly where ownership structures — companies, trusts, or nominee arrangements — obscure who is truly behind a purchase.

Australia’s property market, and Sydney specifically, has been named in international reports as a destination for laundering the proceeds of crime, particularly corruption-related funds from the Asia-Pacific region. These new rules are a direct response to that, and they are designed to make it significantly harder to use a property transaction to move or conceal the proceeds of crime.

What Does This Mean for You?

The most direct impact on you as a client is at the start of a matter. Before we can formally act for you, we are now required by law to verify your identity and confirm who is behind the transaction. In practical terms, this means:

Proof of identity. You will need to verify your identity (VOI). This is not new for us: conveyancers have long been required to verify client identity as part of the standard land transfer process. This is the same type of check your bank performs when you open a new account. What has changed is that this now sits within a broader, more formal compliance framework — so while the check itself will feel familiar, you may notice we ask a little more from you around it. It is straightforward, and we will tell you exactly what we need and how to provide it.

Beneficial ownership. If you are purchasing or selling through a company or trust, we will need to identify the individuals who ultimately own (25% or more) or control that entity. This goes beyond the registered name on the contract — we need to understand who is truly behind the transaction. For most clients this is uncomplicated, but it does require us to ask a few more questions than we have in the past.

Ongoing checks. In some cases we may need to follow up with questions during a matter, particularly where the circumstances of the transaction change. This is part of our obligations under the new law, not a reflection of any concern about you personally.

We appreciate these steps add a layer to what is already a busy and detail-intensive process. We have put systems in place to make it as simple as possible, and we will reach out at the right time with clear instructions on what is needed.

What If We Are Already Acting for You?

If you were already a client of ours before 1 July 2026, you are treated as an existing (“pre-commencement”) client under the law. This means we are not required to carry out the full new identity verification process on you immediately, and there is no interruption to your matter.

That said, we still have ongoing obligations to monitor your matter, and we will need to complete full verification if there is a significant change in the transaction or if it is otherwise required of us by law.

For any new matters opened from 1 July 2026 onward, the new requirements apply from the outset.

Protecting Your Information

Alongside the AML/CTF changes, our practice now also falls under the federal Privacy Act. In practice, this formalises how we already handle your personal information — including the identity documents referred to above — and adds clear standards around how it is collected, stored, and protected.

We manage these requirements as part of our everyday processes, so there is nothing further you need to do. If you would like to know more, our Privacy Policy is available on our website, or you can email us directly for a full copy.

Our Commitment Remains the Same

These changes do not alter the quality or nature of the service we provide. They add a compliance step at the beginning of a matter — one that we are well prepared to manage on your behalf.

If you have questions about what you will need to provide, or are thinking about a transaction and want to know what to expect, please reach out to us directly. We are happy to walk you through it before you formally engage our services.

ConveyAbility — 100 Queenscliff Road, Queenscliff NSW 2096