Australian budget 2026 CGT implications

OldFarmer

OldFarmer

New Member
Capital gains tax has been changed in the Australian 2026 budget last night. This has major implications for people who have invested in precious metals and need to calculate the capital gains tax liabilities when selling. I'm interested to hear what people think about this development.
 
Wow, 4 hours later, just 14 or so views, no replies. Sad to see that this forum has died over the years. I haven't posted here for a helluva long time. Where has the active discussion gone? Reddit? Discord? Facebook?
 
This place comes & goes in waves , when the market is volatile stackers goes quiet .
Reddit is full of clowns ,Facebook is full of thieves .
No idea about Discord , haven't ventured down that road .
I believe CGT should be completely abolished .
 
OldFarmer said:
Wow, 4 hours later, just 14 or so views, no replies. Sad to see that this forum has died over the years. I haven't posted here for a helluva long time. Where has the active discussion gone? Reddit? Discord?
Click to expand...
Stackers have day jobs.

Won’t be that much impact on assets you already hold.

Even if you sell after July 27 the 50% discount will still apply to the gain up to July 27 and the new rules only apply to the gain after that.
Things like shares and PMs have constant market values so easy to know what the asset value is at 1 July 27.
 
Yes, Trew, you make some good points. Here's what I understand as of today:

On 1 July 2027, we will all be required to take a "snapshot" of the market value of our precious metal holdings, with evidence etc, and store that away.

When we eventually sell, for instance, a kilo bar of gold bought in years past, we will have to declare:

  1. The gold bar's cost base (purchase price + costs)
  2. The price obtained (the so-called "Capital Proceeds")
  3. The fraction (called A) of the proceeds gained between purchase date and snapshot value as recorded. This amount can be halved for tax purposes (CGT discount of 50%)
  4. The remaining fraction (called B) of the gains is then lessened by a formula that incorporates the annual inflation rate
  5. Add A and B, giving total taxable gain (C)
  6. Add C to your taxable income

Some irritating issues:

If you try to sell the gold bar in a year in which you know you'll have no or little income, so that you can take advantage of the low tax rate that applies to smaller incomes (which used to be 23%), that's been blocked. The minimum tax rate on capital gains is now 30%.

Inflation rates are highly manipulated and usually grossly underestimate real inflation. This means the capital gain is overestimated for tax purposes.
 
trew said:
Stackers have day jobs.

Won’t be that much impact on assets you already hold.

Things like shares and PMs have constant market values so easy to know what the asset value is at 1 July 27.
Click to expand...

I wouldn’t be surprised if a sharp downward correction would happen just prior to 1st July 2027 then accelerate upward afterwards, maybe not so much PM’s but property and shares
 
[QUOTE

Some irritating issues:

If you try to sell the gold bar in a year in which you know you'll have no or little income, so that you can take advantage of the low tax rate that applies to smaller incomes (which used to be 23%), that's been blocked. The minimum tax rate on capital gains is now 30%.

[/QUOTE]

Looks like me and the missus will have to come out of retirement and work part time up to the $18200 each tax free
Not going sell any assets for captital gain to pay 30% tax
I already paid tax on the money earned to purchase assets and also paid a heavy price in deteriorated physical health.
 
Last edited:
You must log in or register to reply here.
Back
Top