I had a landlord in Flare Portside Wharf call me the week the budget landed. She’s owned her apartment for eleven years — bought it off the plan in 2014, watched it grow through the Olympic announcement years, and had been quietly planning to sell around 2029 when her youngest finishes school. Her first question wasn’t ‘should I sell?’ It was: ‘Summer, is it too late?‘
I’ve had a version of that conversation at least a dozen times since 12 May. And the honest answer — for most of the landlords we manage for in Hamilton, Ascot, and Portside Wharf — is that it probably isn’t too late. But the detail matters, and I don’t want anyone making decisions based on a headline.
So this is my attempt to cut through the noise. I’ll walk you through what’s actually been proposed, what’s protected, and where the real risks sit — particularly for investors holding premium inner-Brisbane apartments. I’ve also built a free Capital Gains Tax Calculator that lets you compare your estimated position under current rules versus the proposed new rules. Think of it as a tool to prepare better questions for your accountant — not a substitute for that conversation
The proposed CGT changes will not touch gains that accrued before 1 July 2027. If you already own an investment property, your existing position is likely more protected than the headlines suggest. But the split between what you've earned before and after that date is where everything hinges — and that's exactly what the calculator below is designed to help you model.
1. What's Changing? The 2026 Federal Budget CGT Reforms Explained
Two changes. Both take effect from 1 July 2027. Both have grandfathering provisions — which is where the protection for existing investors sits. Let me take them one at a time, because they’re being conflated in a lot of what I’ve been reading, and they’re actually quite different in how they affect you depending on when you bought. Quick bit of background on each: one affects the 50% CGT discount, the other affects negative gearing. Here’s what each one actually says.
Negative Gearing — Limited to New Properties from 1 July 2027
What’s changing
From 1 July 2027, negative gearing — the ability to offset rental property losses against your salary or other income — will be limited to newly constructed residential properties only. For existing investment properties purchased after 7:30pm on 12 May 2026, any rental losses will be ‘quarantined.’ This means they can only be offset against other residential property income or capital gains from residential property — not your other income. Any excess losses carry forward to future years.
What’s protected
If your investment property was already owned — or under a contract exchanged — before 7:30pm on 12 May 2026, nothing changes. Your negative gearing arrangements remain fully intact under existing rules for as long as you hold that property. This is not a small thing.For most of the landlords we manage for across Portside Wharf, Hamilton, and Ascot — the vast majority of whom bought well before May 2026 — this grandfathering provision means the negative gearing changes simply don’t apply. Your position hasn’t changed. That was the first thing I told the Flare landlord, and I’ll tell you the same.
Capital Gains Tax — The 50% Discount Is Being Replaced
What’s changing
Currently, if you’ve held a property for more than 12 months, you benefit from a 50% CGT discount when you sell. Under the proposed changes effective 1 July 2027, this discount will be replaced with a cost base indexation method.
Here’s how the new method works:
- Your original purchase price is adjusted for inflation using a CPI indexation factor
- The capital gain is calculated on the difference between the indexed cost base and your sale price
- A 30% minimum tax rate applies to capital gains accrued after 1 July 2027
- These changes apply to individuals, trusts, and partnerships holding assets for at least 12 months
Critical point: gains accrued before 1 July 2027 retain the 50% CGT discount. The new rules only apply to gains that accrue after the start date.
What’s protected — the pre-2027 gain split
This is the part that matters most for long-term holders. The ATO has confirmed that the new CGT rules will only apply to gains that accrue after 1 July 2027. Gains accrued before that date retain the existing 50% discount. So the longer you’ve held your property, the more of your total gain sits under the old — more favourable — rules. The landlord at Flare has held since 2014. A large portion of her gain already sits safely in the pre-2027 period.
New builds: more flexibility
If you’re investing in a new build purchased after 7:30pm on 12 May 2026, the rules work differently. New build investors will be able to choose between the 50% CGT discount and the new indexation method when they sell — whichever is more favourable at the time.
One More Thing — Pre-1985 Properties Are Also Affected
This one catches people off guard, and it’s worth flagging specifically for Ascot and Hamilton where some properties have been in families for decades.
Under current rules, properties purchased before 20 September 1985 — known as ‘pre-CGT assets’ — are completely exempt from capital gains tax. That exemption is proposed to change from 1 July 2027.
Under the proposed rules, the CGT exemption for pre-1985 assets will no longer apply to gains that accrue after 1 July 2027. Any growth in value from that date onward will be subject to the new indexation method and the 30% minimum tax rate. All growth before 1 July 2027 — including every dollar earned since 1985 — remains exempt.
If you own a character home in Ascot or Hamilton that’s been in the family since the 1970s or early 1980s, this is directly relevant to you. It’s not a reason to sell in a hurry — and it’s certainly not a reason to panic. But it is a reason to understand your position clearly and have a specific conversation with your accountant about what 1 July 2027 means for that particular property.
2. Use the Free CGT Calculator — Prepare for Your Accountant Conversation
I built this calculator for one reason: so you walk into your accountant’s office with a number in your head, not a question mark. It won’t replace that conversation — your accountant knows your full picture, your ownership structure, and your overall tax position in a way no general tool can. But having a ballpark changes the quality of the conversation significantly.
Your estimated CGT position will depend on a few key inputs:
- When you purchased (or plan to purchase) your property
- Whether it is a new build or an established property
- Your marginal income tax rate
- The estimated value of your property at 1 July 2027 — this becomes the key reset point in the calculations
- The anticipated sale price and the growth between now and when you sell
Australian Capital Gains Tax Calculator
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Your Estimated Results
Important Disclaimer: This calculator is a general information tool only and does not constitute legal, financial, accounting, or taxation advice. The proposed CGT changes are announced policy only and have not yet been legislated — calculation methods and concession rules may change once final laws and ATO guidance are released. Results from this calculator may differ from other calculators, as each tool applies its own interpretation of the proposed rules. Neither this nor any other calculator can be considered a definitive estimate until the ATO publishes final guidance. You should obtain advice from a qualified accountant or financial adviser before making any investment or taxation decisions.
For official ATO guidance on capital gains tax, visit ato.gov.au.
3. Capital Gains Tax 2027 — What It Means for Brisbane's Hamilton, Ascot and Portside Wharf Apartment Investors
I want to be honest about this, because I think there’s been a lot of catastrophising — and also some overconfidence that nothing will change. The truth is somewhere in between, and it depends almost entirely on your individual numbers.
For investors holding premium apartments in buildings like Flare, Infinity, Pinnacle, and Gallery House — properties that have seen strong capital growth since the Olympic announcement — the CGT changes deserve serious attention. Not panic. Attention.
Here’s the honest picture: whether the new indexation method costs you more or less than the old 50% discount will come down to how much growth occurs after 1 July 2027 and what CPI does over that period. In some scenarios, the indexed method actually produces a lower taxable gain. In others, it’s higher. I can’t tell you which applies to your property without your numbers — which is exactly why the calculator exists.
What I can tell you is that the fundamentals haven’t changed. Inner-Brisbane premium apartments in postcode 4007 continue to attract a strong, stable tenant pool. The income holds. The long-term capital story holds. These proposed changes affect the tax on exit — not the investment itself. And for landlords who’ve held for ten years or more, the pre-2027 gain split often makes the picture significantly more manageable than the headlines suggest. For more on why managing these properties well matters to your returns, read: Why Generic Property Management Is Costing Ascot, Portside Wharf and Hamilton 4007 Landlords Money.
4. What Should You Do Before 1 July 2027?
The legislation hasn’t passed yet — the rules may still change before July 2027. But ‘it might change’ isn’t a reason to do nothing. Here’s what I’d suggest doing now, regardless of how the final rules land.
- Run your numbers. Use the free CGT Calculator above to model your estimated CGT position under both the current and proposed rules. This gives you a baseline for the conversation with your adviser.
- Talk to your accountant. These are complex changes with real implications for your tax position. A qualified accountant can model your specific situation — including the split between pre- and post-2027 gains — far more accurately than any general calculator.
- Review your portfolio strategy. If you’re planning to buy an additional investment property, the timing relative to the 12 May 2026 cut-off is significant for negative gearing. Get clarity before you sign a contract.
- Talk to us. If you’re reassessing your property management strategy in light of these changes — including whether to continue holding, sell, or add to your portfolio — we’re here. We manage your investment every day and we’re happy to think through the questions with you. For more about how we manage property in Ascot and surrounds: Premium Residential Property Manager Ascot.
5. Official ATO Resources — Capital Gains Tax
These are the primary official sources for understanding how CGT works in Australia and how it applies to property. We recommend bookmarking these pages and reviewing them with your accountant.
→ ATO: Capital Gains Tax Overview
→ ATO: Property and Capital Gains Tax
→ ATO: CGT Discount for Individuals
Note: The proposed changes outlined in this article are based on the 2026 Federal Budget announcements. Until legislation passes Parliament, the rules described are proposed only. Always refer to the ATO website and your adviser for current guidance.
About Summer Finlay & Premium Residential
Summer Finlay is Principal & Director of Property Management at Premium Residential.
Premium Residential is a family-owned property management business led by second-generation Principal Summer Finlay. Established in 2011, Premium Residential specialises in premium rental properties within postcode 4007 (Ascot, Hamilton, Portside Wharf) and surrounding premium Brisbane suburbs.
Premium Residential has a genuine local connection: three generations of the Finlay family live, work, and invest in the same communities they serve. This hyper-local expertise means building-specific knowledge across premium developments — from Portside Wharf’s Flare and Infinity apartments to Hamilton’s riverside residences and Ascot’s prestigious streets.
Summer Finlay’s philosophy centres on stewarding your legacy — delivering radical transparency, personalised service, and property management excellence that protect and grow your investment. With a 94% property leasing rate within seven days, Premium Residential has established itself as THE authority for discerning property owners and tenants in Brisbane’s premium rental market.
Frequently Asked Questions.
Managing an investment property in Ascot, Hamilton, or Portside Wharf? Summer Finlay and the Premium Residential team specialise exclusively in these suburbs. If you’d like to talk through what the 2027 CGT changes could mean for your specific property — or if you’re simply looking for a property manager who treats your investment like a legacy — visit our Ascot property management page to learn more or get in touch directly.
Contact Summer Finlay
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Summer Finlay | Principal & Director of Property Management
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✉️ [email protected]
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Premium Residential is a property management company — we’re not financial advisers or accountants, and nothing on this blog should be taken as financial or tax advice. Property investment involves risk, and everyone’s situation is different. Before making any decisions, please speak with a qualified accountant or licensed financial adviser who knows your full picture.
