I have an investment property that I purchased through my SMSF in 2014, which is rented.
In the scenario the government lowers the 50% CGT discount (e.g., to 33% or lower), is it likely that existing investments would be "grandfathered". Meaning assets/investments purchased before May 2026, would retain the current 50% discount rules?
Hi @AussieShaun,
We can’t confirm how future tax law changes would be designed or applied.
A few general points that may help:
@Glenn4802 is right. SMSFs don’t receive the individual 50% CGT discount. For complying super funds, a 1/3 CGT discount may apply in accumulation phase, and capital gains on assets supporting a retirement‑phase income stream may be exempt.
At this stage, there’s no enacted law or official guidance confirming any change to the CGT discount or how it would apply to existing assets. It would be best to monitor official announcements if proposals are released.
There is lots of speculation about if and when the GST discount rate me be reduced. It is highly likely that any gains relating to assets purchased before the announced of a change would be grandfathered i.e. the current discount rate would apply.
As an aside, a one-third (not 50%) discount currently applies to eligible capital gains on assets held by super funds.
I would say keep the negative gearing and current 50% discount for CGT grains limited to certain numbers such as 5 properties so that it doesn't hurt or upset avg individual investors especially people who owns the properties on their own name rather than trust or a company. They can play with numbers such as 3 and 5 but completely abolishing doesn't make any sense. The big investors are not going to stop investing as they hold the properties on the trust/company name which they will keep holding until to a stage and pass it to the next generation.
Hi @AussieShaun,
We can’t confirm how future tax law changes would be designed or applied.
A few general points that may help:
@Glenn4802 is right. SMSFs don’t receive the individual 50% CGT discount. For complying super funds, a 1/3 CGT discount may apply in accumulation phase, and capital gains on assets supporting a retirement‑phase income stream may be exempt.
At this stage, there’s no enacted law or official guidance confirming any change to the CGT discount or how it would apply to existing assets. It would be best to monitor official announcements if proposals are released.
6 Feb 2026 · 4 min read time
16 June 2026 · 2 min read time
15 Apr 2026 · 4 min read time
12,921 views
3 replies