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Glossary · CGT

30% minimum tax floor

Also known as: 30% CGT floor, CGT minimum tax

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.

Announced in the 2025 Federal Budget. If the taxpayer’s marginal-rate tax on the post-2027 portion of the gain would be less than 30% of that portion, the floor applies. The mechanic interacts with the CGT split at 1 July 2027 - pre-2027 gain keeps current law (50% discount where eligible); post-2027 gain is indexed-gain-only with the 30% floor.