U First Accounting & Tax Services
CGT Calculator — Budget 2026
Budget 2026
Capital Gains Tax Calculator
Prepared by U First Accounting & Tax Services — Compare your CGT under current law vs the new Australian Budget 2026 rules, which tax only your real (above-inflation) gain. The new rules have passed Parliament and apply from 1 July 2027.
Your Investment
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Gain Splitting Method
Under Budget 2026, your total gain is split into a pre-transition portion (current rules, 50% discount) and a post-transition portion (new rules, inflation-adjusted). Choose how to calculate each portion.
Your Tax Situation
Important assumption: This calculator applies your selected income bracket's marginal tax rate to the entire capital gain. In reality, adding a capital gain to your income may push part or all of the gain into a higher tax bracket, resulting in a higher tax bill than shown here. For an accurate calculation based on your total taxable income, please consult a Registered Tax Agent.
Contact U First Accounting & Tax Services on (03) 9995 9114 for a personalised assessment.
Contact U First Accounting & Tax Services on (03) 9995 9114 for a personalised assessment.
Inflation Assumption
Under the new Budget 2026 rules (now law, effective 1 July 2027), only your real (above-inflation) gain is taxed. Adjust the rate below to see how it affects your result.
2.5%
0%
2.5% RBA target
5%
□ Time Apportionment
Difference in what you keep
After tax return today
After tax return under Budget 2026
Return impact
Current Law
New Budget 2026 Rules
How the New Budget 2026 Rules split your gain
Capital gain before tax
Pre-transition portion (current rules)
Taxable pre-transition gain (after 50% CGT discount)
Post-transition portion (new rules)
Inflation adjustment
Taxable post-transition gain
Taxable gain under New Budget 2026 rules
Estimated tax under current law
Estimated tax under New Budget 2026 rules
Difference in what you keep
Important — Please Read: This calculator provides general estimates only and does not constitute financial, tax or legal advice. Results are indicative only and your actual CGT liability may be significantly different depending on your personal circumstances.
This calculator does NOT account for the following CGT concessions and exemptions, which may reduce or eliminate your tax liability:
Small Business CGT Concessions (Div 152, ITAA 1997) — If you are a small business entity (aggregated turnover under $2 million, or net assets under $6 million), you may be entitled to:
• 15-Year Exemption — A full CGT exemption if you have continuously owned an active asset for at least 15 years and you are aged 55+ retiring, or permanently incapacitated. The entire capital gain may be disregarded.
• 50% Active Asset Reduction — An additional 50% reduction on the capital gain from an active asset used in your business, on top of the general 50% CGT discount.
• Retirement Exemption — Up to $500,000 lifetime limit of capital gains from active assets can be exempt if amounts are paid into superannuation (or if under 55, must be paid to super).
• Rollover Relief — Allows you to defer a capital gain if you acquire a replacement asset or improve an existing asset within 2 years.
Other CGT Exemptions & Concessions Not Included:
• Main Residence Exemption — Your primary home is generally fully exempt from CGT. Partial exemptions may apply if it was used for income-producing purposes or if you were absent for periods.
• CGT Discount for Individuals & Trusts — 50% discount for assets held more than 12 months (already included in current law comparison, but may interact differently with Budget 2026 rules).
• Superannuation Fund Discount — SMSFs and complying super funds receive a 33.33% discount (not 50%) on assets held over 12 months.
• Deceased Estates — Special rules apply to assets inherited from a deceased estate, including deemed acquisition at date of death and potential exemptions.
• Involuntary Disposal — Rollover relief may apply where an asset is compulsorily acquired, lost, destroyed or damaged.
• Scrip-for-Scrip Rollover — May apply to shares or units exchanged in a takeover or merger.
• Marriage or Relationship Breakdown — Transfers between spouses under a court order may be CGT exempt.
• Pre-CGT Assets — Assets acquired before 20 September 1985 are generally exempt from CGT entirely.
• Foreign Residents — Different CGT rules and withholding obligations apply to non-residents.
• Capital Losses — Current and prior year capital losses must be offset against capital gains before applying discounts.
• Crypto & Digital Assets — Subject to specific ATO guidance and may be treated differently.
• Trust Distributions — CGT treatment of trust distributions involves additional complexity.
The Federal Budget 2026 CGT changes have passed Parliament and are now law, effective from 1 July 2027. New build properties are exempt from the new rules. All figures include the 2% Medicare Levy. Tax rates used are based on 2025–26 individual resident tax rates and may not reflect your actual effective tax rate.
⚠️ Tax Bracket Assumption: This calculator assumes your capital gain is taxed entirely at your selected income bracket's marginal rate. It does not account for the possibility that adding a capital gain to your existing income may push part or all of the gain into a higher tax bracket, resulting in a higher actual tax liability than shown. Your true tax outcome depends on your complete taxable income for the year, including all other income sources, deductions, offsets, and credits.
⚠️ For an accurate tax calculation specific to your circumstances, you must consult a Registered Tax Agent. Contact U First Accounting & Tax Services on (03) 9995 9114 or visit ufirstaccountingntaxservices.com.au — Julia Le, CA. ANZ, Registered Tax Agent.
⚠️ We strongly recommend you speak with a registered tax agent or tax adviser before making any investment decisions. Contact U First Accounting & Tax Services on (03) 9995 9114 or visit ufirstaccountingntaxservices.com.au for personalised advice.
This calculator does NOT account for the following CGT concessions and exemptions, which may reduce or eliminate your tax liability:
Small Business CGT Concessions (Div 152, ITAA 1997) — If you are a small business entity (aggregated turnover under $2 million, or net assets under $6 million), you may be entitled to:
• 15-Year Exemption — A full CGT exemption if you have continuously owned an active asset for at least 15 years and you are aged 55+ retiring, or permanently incapacitated. The entire capital gain may be disregarded.
• 50% Active Asset Reduction — An additional 50% reduction on the capital gain from an active asset used in your business, on top of the general 50% CGT discount.
• Retirement Exemption — Up to $500,000 lifetime limit of capital gains from active assets can be exempt if amounts are paid into superannuation (or if under 55, must be paid to super).
• Rollover Relief — Allows you to defer a capital gain if you acquire a replacement asset or improve an existing asset within 2 years.
Other CGT Exemptions & Concessions Not Included:
• Main Residence Exemption — Your primary home is generally fully exempt from CGT. Partial exemptions may apply if it was used for income-producing purposes or if you were absent for periods.
• CGT Discount for Individuals & Trusts — 50% discount for assets held more than 12 months (already included in current law comparison, but may interact differently with Budget 2026 rules).
• Superannuation Fund Discount — SMSFs and complying super funds receive a 33.33% discount (not 50%) on assets held over 12 months.
• Deceased Estates — Special rules apply to assets inherited from a deceased estate, including deemed acquisition at date of death and potential exemptions.
• Involuntary Disposal — Rollover relief may apply where an asset is compulsorily acquired, lost, destroyed or damaged.
• Scrip-for-Scrip Rollover — May apply to shares or units exchanged in a takeover or merger.
• Marriage or Relationship Breakdown — Transfers between spouses under a court order may be CGT exempt.
• Pre-CGT Assets — Assets acquired before 20 September 1985 are generally exempt from CGT entirely.
• Foreign Residents — Different CGT rules and withholding obligations apply to non-residents.
• Capital Losses — Current and prior year capital losses must be offset against capital gains before applying discounts.
• Crypto & Digital Assets — Subject to specific ATO guidance and may be treated differently.
• Trust Distributions — CGT treatment of trust distributions involves additional complexity.
The Federal Budget 2026 CGT changes have passed Parliament and are now law, effective from 1 July 2027. New build properties are exempt from the new rules. All figures include the 2% Medicare Levy. Tax rates used are based on 2025–26 individual resident tax rates and may not reflect your actual effective tax rate.
⚠️ Tax Bracket Assumption: This calculator assumes your capital gain is taxed entirely at your selected income bracket's marginal rate. It does not account for the possibility that adding a capital gain to your existing income may push part or all of the gain into a higher tax bracket, resulting in a higher actual tax liability than shown. Your true tax outcome depends on your complete taxable income for the year, including all other income sources, deductions, offsets, and credits.
⚠️ For an accurate tax calculation specific to your circumstances, you must consult a Registered Tax Agent. Contact U First Accounting & Tax Services on (03) 9995 9114 or visit ufirstaccountingntaxservices.com.au — Julia Le, CA. ANZ, Registered Tax Agent.
⚠️ We strongly recommend you speak with a registered tax agent or tax adviser before making any investment decisions. Contact U First Accounting & Tax Services on (03) 9995 9114 or visit ufirstaccountingntaxservices.com.au for personalised advice.