Australia: Capital Gains Tax

On Tuesday, 12 May 2026, the Treasurer, Dr Jim Chalmers, handed down the 2026–27 Federal Budget. The Federal Budget introduces the most significant tax reforms aimed at reshaping how income and wealth are taxed in Australia. The Government is seeking to rebalance the system by reducing tax on income from work and increasing tax on income from assets, and then using that difference to fund personal tax relief and influence housing behaviour.

The removal of the pre-CGT tax exemption from 1 July 2027 is driving increased interest in Members Voluntary Liquidations (MVL) as a tax-efficient exit strategy. This article examines how liquidator distributions...

The Federal Government’s proposed changes to the taxation of discretionary trusts may create one of the most significant small business restructuring opportunities seen in years. Assuming, of course, the legislation survives the usual process of political compromise and lobbying.

On 28 May 2026 the federal government introduced a Bill to Parliament to give effect to the wide-ranging capital gains tax (CGT) and negative gearing changes that had been announced in the 2026-27 Federal Budget

The 2026-27 Federal Budget faces the challenge of balancing ambition with caution amid geopolitical and economic uncertainty. With rumoured reforms to capital gains tax discounts, trust taxation, and negative gearing on the table, businesses are seeking clarity on policy settings that could fundamentally reshape investment structures and tax planning strategies. Will the government pursue transformative reform or opt for measured adjustments to strengthen national resilience?

Australia's proposed capital gains tax reforms may inadvertently undermine government efforts to strengthen sovereign defence capability and innovation. As the nation faces increasing global instability and supply chain vulnerabilities, changes to the CGT regime could discourage investment in defence-focused startups precisely when such investment is most critical to national security objectives.

The Australian Treasury has released exposure draft legislation that significantly expands capital gains tax obligations for non-residents, introducing new ATO notification requirements for transactions valued at $50M or more and fundamentally shifting due diligence responsibilities from vendors to purchasers. These changes will impact M&A deal processes, compliance timelines, and risk allocation between parties in cross-border transactions involving Australian assets.

There are significant tax developments underway that have the potential to materially impact private equity debt and investment structures in Australia. Private equity investors can expect the Australian Taxation Office...

I'd be interested to know how your father was able to split his CSL shares between you and your sister, as my husband and I would like to split our shares, not CSL, between our son and daughter. Can we do this simply before we die or what wording should be used to clarify our wishes in our Wills?