After the Australian tax reforms, what do you most need to watch out for when investing in an established property?

Recently, many clients have been asking: "After Australia's tax reforms, will buying an established property be affected?"

Here's the short answer today:
For established property investment, the most important change is that the way Capital Gains Tax is calculated may undergo significant changes.

Key points of the new system:

From 1 July 2027, the 50% Capital Gains Tax discount currently available on assets held for more than a year may be replaced by:

Cost base adjusted for inflation (Indexation)
＋
A minimum 30% Capital Gains Tax rate

So what scenarios could arise for established properties?

【Scenario 1】
Sale completed before 1/7/2027
→ Still calculated under the old system

【Scenario 2】
Asset purchased after 1/7/2027
→ Entirely under the new system

【Scenario 3 (the one most people care about)】
Purchased before 2027, but sold after 2027

This situation will use "apportioned calculation":

▪ Capital gains accrued before 1/7/2027
→ Old system applies

▪ Capital gains accrued after 1/7/2027
→ New system applies

In other words:

1 July 2027 may become a very important "valuation reference date".

Which raises the question:

"Should I get a valuation done or not?"

There are mainly two methods:

① Obtain a professional valuation report
② Use the apportionment formula provided by the ATO

So which is better?

Put simply:

If most of the property's growth occurred in the earlier period
→ A valuation is usually more favourable

If there is greater growth potential ahead, with the major gains coming later
→ The apportionment formula may be more advantageous

【My recommendation】
 Around 1/7/2027, whether it's an owner-occupied or investment property, it's advisable to retain valuation records

Because:
A property that is owner-occupied today doesn't mean it won't be converted to an investment property in the future
With valuation records, there is usually more room for tax planning when you sell in the future.
Right now, many people are focused on "where to buy"
But over the coming years, understanding "how to hold and how to exit"
may become even more important.
(The above is provided as general information only. For your actual tax arrangements, please confirm with a professional accountant or tax adviser.)