Smash Property Investing
Investing
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For clients worried about CGT policy changes

the cgt
myth, busted.

If Canberra ever scraps the 50% CGT discount, the most likely fallback is the old indexation method — taxing only the real gain above inflation. Run the numbers and the outcome is closer than the headlines suggest. Property still wins.

Your scenario

Long-run average since 1990 = 2.57%.
Last 12 months ≈ 4.5%.
Scenario A

50% CGT Discount

Today's rules. Hold >12 months, halve the gain, then tax at your marginal rate.
Future value—
Total gain—
Taxable amount—
CGT payable—
After-tax profit
—
— total return on cost
baseline
Scenario B

Indexation Returns

Pre-1999 rules return. You only pay tax on the gain above inflation — no 50% discount.
Future value—
Inflation-indexed cost—
Real gain (above CPI)—
CGT payable—
After-tax profit
—
— total return on cost
—
Scenario C

Worst Case

Discount removed and no indexation. Full nominal gain taxed at your marginal rate.
Future value—
Total gain—
Taxable amount—
CGT payable—
After-tax profit
—
— total return on cost
—

After-tax profit, side-by-side

All three scenarios at your inputs. The gap between the bars is the actual policy risk — not the headline.
The bottom line

even if the rules change,
the math still works.

—
After-tax profit under today's rules. The benchmark every client knows.
—
After-tax profit if indexation returns. Different mechanism, similar outcome.
—
The gap between the two — the real size of the policy risk.
your number, your situation

the calculator gave you the headline.
now get the plan.

A $1M generic example isn't your portfolio. The proposed tax changes will hit every investor differently depending on holding period, structure, leverage and where you bought. A 20-minute Clarity Call gets you a straight answer for your situation — no pitch, no contract, no follow-up sequence. That's the deal.

Option 01 · Recommended

Book a 20-min Clarity Call

Pick a time that works for you. We listen, you ask, and by the end you'll know whether the proposed changes actually move the needle for your portfolio — and what the smart next step is.

Book my call →
20 minutes No pitch Free
Option 02 · We'll call you

Send & book my call

Same form as our contact page. Fill it in and we'll be in touch within 24 hours on business days. Your calculator inputs come through with the enquiry so we can hit the ground running.

Replies within 24 hrs.
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Talking points for the call

  1. The doomsday scenario isn't on the table. No major party has proposed removing CGT relief entirely. The realistic debate is between today's 50% discount and a return to inflation-indexed cost base.
  2. Indexation isn't punishment, it's a swap. You lose the 50% discount but stop paying tax on inflation. At higher CPI, indexation actually beats today's discount.
  3. The cost base is locked in. Any change is almost certain to apply prospectively or grandfather existing assets — historical precedent in Australia is strong.
  4. Property is leveraged. The after-tax numbers shown are on the asset's growth. Your client's actual return on deposit is multiples higher.
  5. Doing nothing has a tax cost too. Cash and term deposits are taxed at marginal rates with no discount and no indexation — every year, not just on sale.
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