Australia's Capital Gains Tax Is Changing — Here's What to Know
Australia is tweaking its capital gains tax rules from 2026–2027, but one feared change didn't make the cut. Here's the quick rundown.
If you hold investments in Australia — or are thinking about it — there's been plenty of noise about upcoming changes to how capital gains are taxed. The good news first: Australia is not introducing a tax on unrealised gains. That means you still only owe tax when you actually sell an asset, not simply because its value has gone up on paper.
What is changing, starting in the 2026–2027 financial year, is the 50% capital gains tax discount — the rule that lets eligible investors halve the taxable portion of a gain on assets held for over 12 months. Reforms to this discount are on the way, along with the introduction of a minimum tax on capital gains. The specifics are still taking shape, but if you're a long-term investor relying on that discount, it's worth paying attention.
For digital nomads and remote workers with Australian assets — whether that's property, shares, or a business stake — the realisation-based system remaining intact is a relief. You won't be hit with a tax bill just for holding something that's grown in value. The trigger is still the sale.
That said, the upcoming changes do matter. If the 50% discount gets clipped or capped, the tax hit on selling an asset you've held for years could be noticeably higher than under today's rules. Getting advice from a tax professional familiar with Australian expat or non-resident rules is a smart move before 2026 rolls around.
Inspired by reporting from Nomad Capitalist.