Tax reform terms, plain English.

A 50% reduction in the taxable capital gain available to Australian individuals and trusts holding an asset for more than 12 months before sale.

A proposed 2027 measure that applies a minimum 30% tax rate to the post-reform portion of a capital gain on residential property, regardless of the taxpayer’s marginal rate.

The technical trigger that crystallises a capital gain or loss for tax purposes - most commonly the disposal of a CGT asset.

The starting figure used to calculate a capital gain - purchase price plus acquisition costs (stamp duty, conveyancing) plus capital improvements during the hold, minus capital allowances claimed.

A historical method (largely retired post-1999 for individuals) of inflating the cost base by CPI so only real gains are taxed. Proposed for return under the 2027 reform for the post-2027 portion of residential property gains.

When a leveraged investment property runs a net tax loss (rent minus interest, expenses and depreciation), and the loss offsets the investor’s salary or other income, reducing total tax payable.

A residential dwelling that is not new - i.e. has been previously occupied or sold. The negative-gearing restriction in the proposed 2027 reform applies specifically to this class.

The rate of income tax applied to the next dollar of income earned, determined by which Stage 3 tax bracket the taxpayer falls into.

Tax depreciation on removable items in a property - appliances, carpets, blinds, hot water systems. Annual deduction reduces taxable income.

Tax depreciation on the structural cost of a residential building (typically 2.5% per year over 40 years). Reduces taxable income during the hold but also reduces the CGT cost base at sale.

A property held by two or more individuals (usually a couple) where rent and capital gains are split by ownership percentages and each owner pays tax at their own marginal rate.

A trust where the trustee has discretion to distribute income and capital each year to any beneficiary listed in the deed - usually streamed to whichever beneficiary is on the lowest marginal rate that year.

A self-managed superannuation fund holding the property in its pre-retirement phase. Earnings taxed at 15%, long-term gains effectively at 10% (1/3 discount under s 115-100(b)).

A self-managed superannuation fund where the member has met a condition of release and is drawing a pension. Eligible income and capital gains are taxed at 0%.

A tax credit attached to a dividend representing the company tax already paid. Used when a company-owned property is sold and the after-tax profit is distributed to shareholders.

A proposed 15% additional tax on the portion of a superannuation fund member’s earnings attributable to a Total Super Balance above $3M, from the 2026-27 income year.

The lifetime limit on how much superannuation can be transferred into the 0%-tax pension phase. Currently $1.9M (indexed); applies per member.

A statutory event that allows a superannuation member to access their preserved super - most commonly reaching preservation age and retiring, or reaching age 65 regardless of work status.

A proposed measure from 1 July 2028 imposing a minimum 30% tax on net trust income, regardless of which beneficiary the trustee streams to.

A one-off state-government tax on the transfer of property ownership. Calculated as a percentage of the property’s value at the time of transfer.