For most of your working life, the focus with super is relatively straightforward. It’s all about building your balance for retirement.
Once retirement approaches, the conversation changes. Instead of asking how much you can accumulate, you begin thinking about how those savings can provide the income you need to live the life you have planned.
That may sound simple, but there are several ways to turn super into retirement income, each offering different levels of flexibility, certainty and access to your savings.
Changes to capital gains tax and negative gearing have attracted plenty of attention since they were announced in the 2026–27 Federal Budget.
With the core legislation now passed, investors have greater clarity about how the reforms will operate from 1 July 2027. However, some of the more detailed implementation rules were still being worked through in August 2026.
For investors, the important question is less about the political debate and more about what the changes may mean for the assets they already hold and the investment decisions they make from here.
“Tax should rarely be the only reason you make an investment decision, but it can have a significant impact on the eventual outcome,” says Lin Carey, Financial Adviser at Halpin Wealth.
“These changes make it even more important to look at an investment as part of your broader financial strategy rather than focusing on one tax benefit in isolation.”
What is changing with capital gains tax?
Under the existing rules, eligible individuals who hold a CGT asset for at least 12 months can generally receive a 50 per cent discount on the capital gain when the asset is sold.
From 1 July 2027, the treatment of gains accruing from that date will change.
For most eligible assets, the existing 50 per cent CGT discount will be replaced with an inflation-based approach. Rather than automatically discounting an eligible capital gain by 50 per cent, the asset’s cost base will effectively be adjusted for inflation when calculating the taxable real gain.
The reforms also introduce a minimum tax rate of 30 per cent on relevant real capital gains, although exemptions apply in some circumstances, including for recipients of certain income support payments such as the Age Pension.
“The headline change is significant, but the outcome for an individual investor will depend on much more than the tax rate,” Lin says.
“How long you hold the investment, inflation, its actual growth, your broader income and the type of asset you own can all influence the result.”
What if you already own investments?
The changes are designed to preserve gains that accrue before 1 July 2027 under the existing rules.
This means that if you already own an investment property, shares or another affected asset, gains accumulated before 1 July 2027 can continue to receive the existing treatment, while gains accruing after that date will generally fall under the new arrangements.
This is important because it means investors do not necessarily need to sell an existing asset simply because the tax rules are changing.
“At Halpin, we would generally start with the investment itself,” Lin says.
“Does it still suit the client’s objectives? Is it performing the role we want it to play within their portfolio? What are the costs and tax consequences of selling? Those questions should come before making a decision purely because the legislation has changed.”
Will the new CGT rules always mean more tax?
Not necessarily. The impact will depend partly on inflation and the performance of the asset.
During periods of higher inflation, increasing the cost base for inflation may reduce the amount of real capital gain subject to tax. When inflation is relatively low and an investment experiences strong growth, the outcome could be different.
The introduction of the 30 per cent minimum tax may also alter some strategies that previously relied on realising capital gains during lower-income years.
However, there are exceptions and special rules. For example, investors in eligible new residential builds will be able to choose between the existing 50 per cent CGT discount and the new inflation-based arrangements for gains accruing after 1 July 2027.
This makes individual advice particularly important before restructuring or selling investments.
What is changing with negative gearing?
Negative gearing occurs when the deductible expenses associated with an investment property exceed the income it generates.
Under the existing system, eligible investors can generally offset that loss against other taxable income, such as salary or wages.
From 1 July 2027, this treatment will generally be limited to eligible new residential builds.
For established residential properties acquired after 7:30 pm AEST on 12 May 2026, losses will generally no longer be deductible against non-residential income such as salary after the new rules commence. Instead, losses can generally be offset against residential property income, including relevant capital gains, with excess losses carried forward to future years.
“Negative gearing has traditionally been one factor investors consider when assessing the after-tax cost of owning property,” Lin says.
“For some investors, the changes may alter the numbers considerably, so it is worth revisiting assumptions around cash flow before committing to a purchase.”
What happens to existing investment properties?
Grandfathering is an important part of the reforms. If you owned an established residential investment property before 7:30 pm AEST on 12 May 2026, or had entered into a contract to acquire one by that time, the existing negative gearing arrangements will generally continue to apply.
This means existing investors should not assume that their current negatively geared property will suddenly lose its tax treatment from July 2027.
For someone considering purchasing another property, however, the distinction between an eligible new build and an established property will become much more important.
Does this make new property a better investment?
Not automatically. The reforms deliberately provide greater tax incentives for investment in new housing, with the aim of encouraging additional housing supply.
However, tax treatment is only one component of an investment decision. Investors should still consider factors such as:
- Purchase price
- Rental yield and tenant demand
- Location
- Expected capital growth
- Interest and borrowing costs
- Ongoing property expenses
- Diversification
- Liquidity
- Their capacity to manage periods without rental income
- How the investment fits with their wider financial goals
“We want to understand whether the asset itself makes sense first, then look at the most appropriate way to structure and manage it,” Lin says.
Look beyond property
The reforms can also be a useful prompt for investors to reconsider the role property plays within their overall wealth strategy. For some Australians, property represents a substantial proportion of their wealth, particularly when their family home is included.
Depending on your circumstances, building wealth may also involve superannuation, shares, managed investments, cash or other assets.
Diversifying across different asset classes can help reduce reliance on the performance of any single investment or market.
“At Halpin, we are not simply asking whether property is a good or bad investment,” Lin says.
“We are asking how much exposure a client already has to property, what they are trying to achieve and whether their overall mix of assets gives them the flexibility and diversification they need.”
A good time to review your investment strategy
Tax reforms do not necessarily require immediate action. They do, however, provide a good reason to review your current strategy and understand how future decisions may be affected.
If you own investment property or other assets that may be subject to CGT, it may be worth considering:
- Which assets you owned before the relevant reform dates
- How the new CGT treatment may affect future sales
- Whether existing property remains eligible for grandfathered negative gearing treatment
- The expected cash flow of any future property purchase
- Whether new or established property better suits your objectives
- How concentrated your wealth is in property
- Whether proposed investment decisions should be reviewed with your financial adviser and accountant
The right decision will depend on your individual financial position rather than the tax rules alone.
“Changes like these can understandably make investors wonder whether they need to do something immediately,” Lin says.
“Often the better starting point is to understand exactly how the rules apply to you, model the potential impact and then make a considered decision.”
Source: Adapted from “Understanding the changes to CGT and negative gearing”, published through the Financial Knowledge Centre on 12 August 2026. Legislative details have been checked against Australian Treasury and Parliamentary information current to August 2026.
Review what the changes could mean for you
Changes to tax rules can affect investment decisions, but they should always be considered alongside your broader goals, cash flow and financial position. Halpin Wealth can help you review your existing investments, understand how the new rules may affect future decisions and work alongside your accountant where tax advice is required.
If you are considering buying, holding or selling an investment, contact our team to discuss your strategy before making significant changes.
This information provided in this article is general advice only and has been prepared without taking into account your own objectives, financial situation or needs. Before making a financial decision based on this advice, you must consider whether it is appropriate in light of your own needs, objectives, and financial circumstances, and where relevant, obtain personal financial, taxation or legal advice. Where a financial product has been mentioned, you should obtain and read a copy of the Product Disclosure Statement (PDS) prior to making any decisions about whether to acquire a product.