Author: Taxduck(Taxicorn)Taxicorn 24 May 2026
Yes, there will be CGT consequences.
Link explains how to report rental income
Renting out part of a home | Australian Taxation Office
CGT is calculated on the same basis
Capital gains tax when renting out accommodation | Australian Taxation Office
Budget changes on CGT can be viewed in the budget papers.
Budget 2026–27 Tax Explainer
The cost base on the value of the property as at 1 July 2027 will be subject to indexation when calculating the cost base. If rented for more than 12 months before 1 July 2027 then the 50% CGT discount can apply on gains accrued up to that date. (see Transitional arrangements in budget papers).
Be aware the changes are not yet law. So there may be changes to the changes before this occurs.
With the new CGT changes let’s assume they do implement them as per the budget say we purchased our home for $500k and by July 1st 2027 when the changes are due to come into effect it it now worth $700k and by 2028 it’s worth $750k are we still able to claim the 50% CGT discount on the $200k gain before changes and then pay the new tax under the new setting on the remaining $50k if that makes sense? Just trying to see if it’s actually worth doing or not
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