Australia: Capital Gains Tax

The Australian Treasury has released exposure draft legislation detailing the implementation of a 30% minimum tax on discretionary trusts, introducing a new election regime that allows trusts to nominate fixed distribution entitlements and avoid the minimum tax. While the draft addresses stakeholder feedback and provides rollover relief for restructuring, it presents complex compliance requirements, strict limitations on beneficiary variations, and potential resettlement issues that may create challenges

On 18 June 2026, the Federal Government announced targeted tax concessions following consultation on its 2026–27 Budget measures. These updates refine the position announced on 12 May 2026, as outlined in Federal Budget 2026–27: key tax changes and what clients need to know.

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.

On 12 May 2026, Treasurer Jim Chalmers handed down the Albanese Government's 2026-27 Federal Budget. Our colleagues in the HSF Kramer Tax Practice Group have already covered the broader tax implications in their article, Federal Budget 2026: Back to the future. But what does this Budget mean for the property market in Australia?

Private client partner Clinton Jackson breaks down the key tax changes announced in the 2026 federal Budget, including proposed reforms to capital gains tax, negative gearing, and discretionary trust taxation. With draft legislation still under review and final rules yet to be determined, Jackson advises clients on what to watch for and when to take action.

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

In this case the Full Court of the Federal Circuit and Family Court of Australia has again affirmed the guiding principles set out in Rosati v Rosati [1998] FamCA 38 as to the treatment of potential capital gains tax in property settlement proceedings.

The Australian Government has released draft legislation proposing significant and retrospective changes to foreign resident capital gains tax rules, dramatically expanding what constitutes taxable Australian real property. These changes will apply to past transactions dating back to 2006, existing investments, and future deals, with only limited transitional relief for renewable energy assets until 2030.

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.