Australia: Capital Gains Tax

The Australian Federal Budget for 2026-2027 introduces sweeping reforms to the tax system, including a controversial 30% minimum tax on discretionary trusts, abolition of the 50% CGT discount in favor of cost base ...

The 2026-27 Federal Budget introduced the most significant capital gains tax reforms in 25 years, replacing the 50% CGT discount with cost base indexation and a 30% minimum tax. Combined with new ASIC instruments on stamp duty and portfolio holdings disclosure, investment fund managers face coordinated disclosure, operational and structural challenges requiring substantial work over the next 12 to 18 months.

Australia's 2026-27 Budget delivers the most significant tax reform in 25 years, fundamentally reshaping property investment incentives through negative gearing restrictions and capital gains tax changes while navigating a global oil crisis pushing inflation toward 5%.

Australia's new debt deduction creation rules (DDCR) operate to disallow debt deductions (e.g. interest expenses) arising on certain related party arrangements for income years starting on or after 01 July 2024.

Cases highlight the complexities associated with the determination of Australian tax residency, particularly for individuals with overseas business interests and changing residences.

The belief that "rent is dead money and buying is the pathway to prosperity" is widely held in the Australian housing market.

The dark places of what happens when a taxpayer has a dispute with the Commissioner.

On 6 June 2024, the Federal Court of Australia (FCA) found in favour of the taxpayer in Ierna v Commissioner of Taxation [2024] FCA 592.

Redefine Australian Investments Limited (Company), an Irish-registered company was placed in voluntary liquidation on 24 January 2018. Martin Ferris was appointed as the liquidator (Liquidator).