CGT Might Be Changing — Here’s Why It Matters

Hi, it’s Grant Abbott from Tax Guru and Lightyear Docs.

Capital Gains Tax has evolved significantly in Australia:

• Pre-1985 — no tax on capital gains

• 1985 — indexed gains taxed

• 1999 — 50% CGT discount introduced

Now, there is strong speculation the discount may be reduced to 33%.

This raises critical structural questions:

1. Timing — immediate vs delayed
2. Transitional rules — will current assets be protected?
3. Scope — property, shares, or all assets?

Each scenario leads to different behaviours:

• Immediate change → rush to sell assets

• Grandfathering → reduced market turnover

• New asset rules → distortion in investment markets

There are also long-term impacts:

• Intergenerational wealth transfer

• Trust and company structuring

• Asset allocation decisions

This is a key area to watch in the May Budget.

Join our Post Budget webinar (May 13) for a full breakdown. https://www.lightyeardocs.com.au/event-details/generational-tax-changes-coming-in-may-budget-what-every-accountant-planner-must-know-for-their-clients

Video: https://youtu.be/CpOXoetb0fc