How Much More
Capital Gains Tax Will You Pay?
Use this calculator to estimate your extra CGT liability under the proposed 2026-27 federal budget changes.
The 2026-27 federal budget proposes changes to how capital gains tax applies to Australian founders, investors, and property owners. This calculator estimates how much more you would pay under the new rules compared to current law — based on your asset type, acquisition cost, and income. Results use current marginal tax rates, 3% CPI, and assume assets held over 12 months. Not tax advice.
STEP 1 OF 3
How did you acquire this asset?
STEP 2 OF 3
Transactional Valuation
STEP 3 OF 3
Your annual taxable income
Not including the capital gain itself.
TAX UNDER CURRENT RULES
$0
Standard 50% CGT discount
TAX UNDER NEW RULES
$0
CPI indexation with 30% min floor
Estimate only. Assumes 3% annual inflation and current marginal rates including Medicare levy. Does not account for bracket creep on the gain itself, state-level taxes, exemptions, or rollovers. This is not tax advice — talk to a qualified accountant before making decisions.
Assumptions
- Inflation rate: 3.0% per annum (long-term Australian CPI average)
- Marginal rates include the 2% Medicare levy
- Asset is held more than 12 months (qualifying for current 50% CGT discount)
- Calculations exclude small business CGT concessions, rollovers, and state-level taxes
Marginal tax rates used
| Income range | Marginal rate (incl. Medicare) |
|---|---|
| $0 – $18,200 | 0% |
| $18,201 – $45,000 | 18% |
| $45,001 – $135,000 | 32% |
| $135,001 – $190,000 | 39% |
| $190,001+ | 47% |
Formula
Current rules: Tax = (Gain × 50%) × Marginal rate
New rules: Inflation-adjusted gain = Sale price − (Cost base × 1.03years). Tax = max(Inflation-adjusted gain × Marginal rate, Gain × 30%)
Worked examples
Founder — Sale $5M, cost $0, 10 years, 47% rate
Current: $5M × 50% × 47% = $1,175,000 • New: $5M × 47% = $2,350,000 • Extra: $1,175,000 (+100%)
Early employee — Sale $1M, cost $50K, 8 years, 39% rate
Current: $950K × 50% × 39% = $185,250 • New: ($1M − $63,338) × 39% = $365,298 • Extra: ~$180,048 (+97%)
Investor — Sale $500K, cost $100K, 5 years, 47% rate
Current: $400K × 50% × 47% = $94,000 • New: ($500K − $115,927) × 47% = $180,514 • Extra: ~$86,514 (+92%)
Long hold / large cost base — Sale $1M, cost $400K, 25 years, 32% rate
Current: $600K × 50% × 32% = $96,000 • New: max($162,488 × 32%, $600K × 30%) = $180,000 • Extra: $84,000 (+88%)
This case shows the 30% minimum floor biting despite significant inflation relief.
Marginal rates should be verified against the current ATO schedule before launch.
Disclaimer & Methodology: Estimates are based on the proposed federal budget CGT changes. Calculations use current Australian marginal income tax rates including the 2% Medicare levy. Assumes CPI of 3% p.a. and that the asset has been held for more than 12 months. Excludes small business exemptions, rollovers, and state-level taxes. This is not tax advice — consult a qualified accountant before acting.