CGT Policy Simulator

Discount or indexation — which saves more tax?

Cost base (what you paid) $400,000

Years held 10 yrs

Expected annual growth 7.0%

Indexation saves you

Move a slider to compare the two methods.

Tax payable — 50% discount (CGT events before 1 Jul 2027) $0

Tax payable — indexation + 30% floor (from 1 Jul 2027) $0

Assumes an individual investor, 32% marginal tax rate, 2.5% p.a. CPI indexation, and no prior capital losses — your real numbers may differ. Compares the 50% CGT discount, which applies to CGT events before 1 July 2027 and remains available by election for eligible new residential dwellings (the affordable housing discount of up to 60% is also retained), against the CPI cost-base indexation plus 30% minimum tax that applies from that date. This is enacted law — Acts No. 49 and 50 of 2026, Royal Assent 26 June 2026 — not a Budget proposal. Indexation is compounded annually here; real indexation uses the ATO’s published quarterly CPI index numbers, so the figure is indicative. Indicative only. Not financial advice.