CGT Change Calculator

Stockspot is Australia's largest digital investment adviser, helping more than 20,000 Australians invest and manage over $1.4 billion tax efficiently.

We build and manage diversified ETF portfolios for clients with balances from $1,000 to over $5 million dollars, automatically rebalancing portfolios, keeping costs low and doing the investing work for you. See how it works.

Five things make Stockspot portfolios tax efficient by design.

ETFs are generally more tax efficient

Unlike many active managed funds, ETFs typically realise fewer capital gains inside the fund. That means investors often avoid unnecessary taxable events and keep more of their money compounding over time.

A long term investment approach

Our portfolios are designed for long term investing, not frequent trading. By reducing unnecessary turnover, investors may be able to defer capital gains tax into the future and keep more of their money compounding for longer.

Smart rebalancing designed to minimise unnecessary tax events

We automatically rebalance portfolios to keep investments aligned with their target allocation. Our technology is designed to avoid unnecessary trading where possible, helping reduce avoidable CGT events.

Tax reporting done for you

We provide a single annual tax statement covering distributions, franking credits, realised gains and cost bases. That means less admin, fewer surprises and no need to reconcile multiple ETF statements yourself.

Franking credits passed through to investors

Australian shares in our portfolios may generate franking credits, which can help reduce tax or potentially generate refunds depending on your circumstances. We make it easy to track and include them at tax time.

The Australian government is reportedly considering changes to capital gains tax ahead of the May 2026 federal budget. One option that has been widely discussed is replacing the current 50% CGT discount for assets held longer than 12 months with an inflation indexation model.

Under the current system, individuals generally pay tax on only 50% of their capital gain if they've held an asset for more than a year. Under an indexation model, the original purchase price would instead be adjusted for inflation, meaning investors would only pay tax on the gain above inflation, sometimes called the "real" gain.

Australia previously used an indexation system before the current CGT discount was introduced in 1999.

At this stage, no changes have been announced or legislated. The calculator is based on media reports and publicly discussed scenarios and will be updated once the government confirms any final changes.

The reported changes would mainly affect Australians who hold investments outside superannuation, including investment properties, shares, ETFs, managed funds, business assets and employee share schemes.

Your principal place of residence would generally remain exempt from capital gains tax under the current rules. Investments already held inside superannuation are also not currently expected to be affected.

At this stage, no final policy has been announced and the scope of any changes could still change before or after the May 2026 federal budget.

Yes. The reported changes would likely apply to most investments subject to capital gains tax outside superannuation, not just investment property.

That could include Australian shares, international shares, ETFs, managed funds, business assets and employee share schemes. At this stage, there's been no indication that listed investments like shares and ETFs would be excluded from any broader CGT changes.

Because many Australians bought assets under the current CGT system, some commentators expect any new rules could include a transitional arrangement rather than applying entirely retrospectively.

One widely discussed approach is a hybrid system. Under this model, the portion of time you held an asset before the rule change would continue to receive the current 50% CGT discount. The portion held after the new rules begin would instead use inflation indexation.

Importantly, the split would likely be based on how long the asset was held under each system, not on how much the asset gained during those periods.

For example, imagine you bought an investment in 2016 and sold it in 2031. If the rules changed in 2026, you would have held the asset for 10 years under the old system and 5 years under the new system. That means roughly two thirds of the holding period would still qualify for the existing 50% discount, while the remaining one third would be taxed under the new indexed approach.

At this stage, no transitional rules have been announced or confirmed by the government.

The current 50% CGT discount reduces the taxable portion of your capital gain by half if you've held an asset for more than 12 months. It doesn't take inflation into account.

Inflation indexation works differently. Instead of reducing the gain by a fixed percentage, it increases your original purchase price, known as your cost base, in line with inflation. You then only pay tax on the gain above inflation, sometimes called the "real" gain.

The difference matters because each system benefits different types of investors.

If inflation is high and your investment return is relatively modest, indexation may result in less tax. But if your investment has grown strongly over time, well above inflation, the current 50% discount is often more generous.

That's why the impact of any CGT change will depend on factors like your holding period, investment return, inflation and tax rate.

No commencement date has been confirmed. However, media reports and public commentary have suggested the changes could begin from either Budget night on 12 May 2026 or from 1 July 2026, the start of the new financial year.

Because no legislation or official policy has been released, the calculator currently uses 1 July 2026 as its default assumption. We'll update the assumptions once the government confirms any final details in the federal budget.

This calculator provides an estimate based on the CGT changes currently being discussed in media reports and public commentary.

It uses a time based apportionment method consistent with the hybrid transitional approach that some commentators expect could be adopted if changes proceed.

Because no legislation or final policy has been released, the calculator relies on assumptions that may change after the federal budget.

The calculator also doesn't take into account your full personal tax position, including carry forward losses, small business CGT concessions, trust structures, company ownership, employee share scheme rules or other individual circumstances.

It's designed as an educational tool only and shouldn't be treated as personal tax advice. You should speak with a registered tax adviser before making financial or investment decisions.

No. This calculator is an educational tool that provides general information only. It doesn't take into account your personal objectives, financial situation or needs and shouldn't be considered financial, tax or legal advice.

The possible CGT changes discussed in the calculator have not been announced or legislated by the government. Results are estimates only and may differ from any final rules introduced after the May 2026 federal budget.

Stockspot recommends speaking with a registered tax adviser or licensed financial adviser before making investment or tax decisions.

No. The calculator is completely free to use and doesn't require an account or sign up. Simply enter your details to estimate how the possible CGT changes could affect your after tax return.

We also don't store, save or retain the information you enter into the calculator.

Yes, to a degree. While you generally can't avoid capital gains tax entirely on investments held outside superannuation, the way you invest can influence how much tax you pay and when you pay it.

Index ETFs, like those used in Stockspot portfolios, typically have lower portfolio turnover than many active funds. That means fewer assets being bought and sold inside the fund, which can help reduce unnecessary taxable events over time.

You also control when you sell your investments, which affects when capital gains are realised and which tax rules apply at the time.

A long term investment approach can also help defer tax into the future, allowing more of your money to remain invested and compounding over time.

Keeping costs low matters too. Lower fees mean you keep more of your investment return regardless of the tax system in place.

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