How Do the 2026 Capital Gains Tax Changes Affect Property Investors?
Capital gains tax is the part of investing people think about last and regret first. With the 50% discount being reworked as part of the 2026 reforms, it's worth understanding before your next buy or sell — not at tax time.
Put simply, capital gains tax is what you pay on the profit when you sell an investment property. Until now, holding for more than a year generally meant you were only taxed on half the gain. As that discount changes, so does how much of your profit you actually keep — and the maths on whether to sell now or later.
The quiet truth is that the biggest tax decisions are made at the start, not the end: who owns the property, how it's structured, and when you plan to sell. Getting that right early — with your accountant in the room — is what protects your return when it's time to cash in.
Why This Matters
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Scenario: Deciding When to Sell an Investment Property
"Tom owns an investment unit he has held for several years and is thinking about selling to free up cash. He's heard the capital gains tax discount is changing and isn't sure whether selling now or later leaves him better off."
The Lending Underwriting Mechanism
Capital gains tax (CGT) is the tax you pay on the profit when you sell an investment property. Up to now, if you've owned it for more than a year, you've generally only been taxed on half the gain — the 50% CGT discount. As part of the 2026 reforms, that discount is being reworked, which changes how much of your profit you keep and can shift the maths on when it's best to sell. Because CGT, your loan structure and who actually owns the property (you, a partner, a trust or your super) all interact, the smart move is to plan the sale and the structure together with your accountant well before you list — not after.
What Borrowers Often Misunderstand
- The best time to plan for CGT is before you buy or sell — not at tax time.
- Changing the ownership structure later can itself trigger tax, so it's worth getting right early.
How This Connects to Structure
In a sophisticated scaling strategy, how you isolate assets and sequence lenders matters significantly. Standard retail banks cross-collateralise titles automatically, locking equity, whereas standalone configurations maintain investment options.
CGT is the tax on your profit when you sell an investment property.
The 50% discount for holding longer than a year is being reworked under the 2026 reforms.
How you own the property — in your name, jointly, in a trust or in super — can change the tax outcome.
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Credit & Legal Compliance Statement
This article is general information only and does not take into account your personal circumstances. Lending policies, eligibility rules and property requirements can vary between lenders and may change over time. You must not act or rely on any information published here to make financial or property purchases without first seeking independent professional credit advice from a licensed credit provider or authorised credit representative.