TL;DR
- Complying super funds keep their one‑third CGT discount and 15% tax rate, but many funds invest through trusts that face a new 30% minimum CGT tax and cost‑base indexation from 1 July 2027.
- The 2026 Federal Budget replaced the 50% CGT discount for individuals and trusts with indexation and a 30% minimum tax, while leaving super’s discount untouched.
- Trusts must track two CGT systems from 1 July 2027, creating asset‑tracking and gain‑streaming challenges for any super fund that holds units in a trust.
- Fund managers and trustees should start working with custodians and administrators now to map holdings, review trust deeds, and model the impact well before the 30 June 2027 transition.
Are Complying Super Funds Subject to the New CGT Rules?
No, complying super funds are not directly subject to the new CGT rules. They keep their existing one‑third capital gains tax discount for assets held longer than 12 months, and the 15% tax rate on net capital gains in accumulation phase stays as it is.
The ATO’s current treatment of SMSFs provides a one‑third discount on capital gains for assets held at least 12 months, which reduces the effective tax rate on those gains to 10%.
The 2026 Budget measures mean that that framework continues unchanged for the fund itself. The Budget’s overhaul, which scraps the 50% discount for individuals and trusts and introduces a 30% minimum tax and cost‑base indexation, does not apply directly to a complying super fund.
The catch is that many large super funds don’t hold assets directly. They invest through unit trusts, pooled super trusts, and other interposed vehicles. Those trust structures are not complying super funds, so they potentially land inside the new rules.
For a refresher on how super funds are taxed, see the superannuation tax treatment page.
Why Super Funds Need to Understand Budget 2026’s CGT Overhaul
The 2026 Federal Budget didn’t rewrite the CGT rules for super funds directly, but it rewired the plumbing that many funds rely on.
From 1 July 2027, the 50% CGT discount for individuals and trusts is gone. In its place, assets held longer than 12 months will have their cost base indexed, and a 30% minimum tax will apply to capital gains flowing through trusts.
Super funds themselves are carved out. But the carve‑out only reaches the fund level. When a super fund invests through a trust, the trust is the taxpayer on the gain, and the trust doesn’t get the super fund’s discount. Instead, it faces the new 30% minimum tax and the indexation rules.
That means a super fund could end up with a higher tax bill on certain trust‑sourced gains than it would on directly held assets, even though the fund itself hasn’t changed.
Trustees and fund managers who assume the Budget passed them by are likely to get an unwelcome surprise. The Federal Budget 2026 page tracks the measures as they progress.
What the Budget 2026 CGT Changes Actually Do
The Budget 2026 CGT changes replace the familiar 50% discount with a cost‑base indexation model and layer a 30% minimum tax on top for trusts, all starting 1 July 2027.
For individuals and trusts, the old rule was straightforward: hold an asset more than 12 months, and only half the gain was taxed.
The new system indexes the cost base by a published inflation factor for assets held longer than 12 months, then applies a 30% minimum tax rate to the resulting gain.
If the taxpayer’s marginal rate is above 30%, the higher rate still applies. The practical effect is that many taxpayers will pay more tax on long‑term gains than they did under the discount, especially in low‑inflation years.
Complying super funds are not part of this switch. They continue to apply their one‑third discount, which gives an effective 10% rate on long‑term gains in accumulation phase.
The 30% minimum tax does not apply to the fund itself. However, the 30% minimum tax does apply to trusts, and that’s the channel through which many super funds access assets. The capital gains tax discount page explains how the discount works for different entities.
How the 30% Minimum Tax on Capital Gains Affects Trust Structures
The 30% minimum tax applies to trusts that are not complying super funds, so unit trusts, pooled super trusts, and other investment vehicles commonly used by large super funds are caught.
Under the new rules, a trust calculates its net capital gain for the year. Before any discount or indexation, the trust must pay tax on that gain at a rate of at least 30%.
How Will the Dual CGT Systems Affect Super Fund Trust Investments?
From 1 July 2027, trusts will in effect have to apply both the legacy 50% discount and the new indexation/30% minimum tax to different portions of many gains, with a transitional split for assets acquired before that date and sold afterwards.
Trusts will need to identify assets by acquisition date, capture their 1 July 2027 values, and track pre‑ and post‑2027 gain components so they can correctly apply the old discount to pre‑2027 gains and indexation plus the minimum tax to post‑2027 gains.
Likewise when a trust streams capital gains, it will need to distinguish between pre‑2027 discounted gains and post‑2027 indexed gains subject to the 30% minimum tax, and reflect that split in the amounts streamed to each beneficiary.
Existing ATO guidance already requires trusts that stream capital gains to identify and characterise the specific capital gains being made, particularly where streaming to beneficiaries with different tax profiles.
Under the new rules, the character of the gain will also include whether it is pre‑1 July 2027 discounted gain or a post‑1 July 2027 indexed gain subject to the 30% minimum.
Professional commentary on the Budget changes already highlights that trusts and intermediaries will need systems capable of distinguishing:
- Pre‑CGT assets with a 1 July 2027 cost‑base reset.
- Assets acquired pre‑1 July 2027 with split gains.
- Assets acquired post‑1 July 2027 fully under the new regime.
That implies changes to unit pricing, registry systems and tax reporting feeds to investors, including super funds.
So it’s fair to say custodians and administrators will need to upgrade systems to capture the necessary data and to feed through the split character of gains in tax reports to super funds and other investors.
What Fund Managers and Trustees Should Do Before the 30 June 2027 Transition
Start now. The 30 June 2027 cut‑off is firm, and the systems work needed to handle dual CGT tracking is not something that can be done in the last quarter.
First, engage with custodians and administrators to understand whether their platforms will be ready to segregate pre‑ and post‑1 July 2027 assets, track indexation factors, and produce the split distribution statements that unitholders will need.
If they can’t confirm readiness, fund managers may need to consider alternative structures or direct holdings.
Second, identify unlisted or illiquid assets held through trusts. These are harder to value and harder to sell, so the transition planning is more complex.
Review trust deeds to check whether the trustee has the power to restructure or redeem units before the deadline.
Third, model the impact. Run scenarios that compare the after‑tax return on a direct holding versus a trust‑held asset under the new rules.
The BDO analysis suggests that for some asset classes, the difference may be material enough to justify restructuring. The superannuation year‑end checklists page can help with broader planning around key dates.
CGT on Super Fund Investments: What’s Unchanged
Even with the Budget 2026 overhaul, several core CGT rules for complying super funds remain untouched. The table below sets out what stays the same.
| Rule | What it means for super funds |
|---|---|
| One‑third CGT discount | Assets held longer than 12 months still get a one‑third discount, reducing the effective tax rate to 10% in accumulation phase. |
| 15% tax rate on net capital gains | The fund’s tax rate on capital gains remains 15% |
| Pension‑phase exemption | Capital gains on assets supporting a retirement‑phase pension are still tax‑free. |
| Carry‑forward of capital losses | Capital losses can still be carried forward and offset against future capital gains. |
| CGT events framework | The existing rules for when a CGT event occurs (sale, transfer, etc.) are unchanged. |
These rules apply directly to assets the fund holds itself. The new complications arise when the fund invests through a trust, because the trust’s tax treatment has changed while the fund’s has not. The superannuation tax treatment page details the current tax settings for super funds.
Frequently Asked Questions
Does switching super funds trigger CGT?
Yes, switching super funds can trigger CGT if the switch involves selling assets within the fund. When you roll over your super balance to another fund, the original fund may need to dispose of assets to pay out your benefit.
Those disposals are CGT events, and the fund will account for any capital gains or losses in its tax return. However, the CGT is borne by the fund, not by you personally, and it reduces the balance rolled over.
What are the new tax rules for Australia in 2026?
The 2026 Federal Budget introduced significant changes to capital gains tax for individuals and trusts, effective 1 July 2027. The 50% CGT discount is replaced by cost‑base indexation for assets held longer than 12 months, and a 30% minimum tax applies to capital gains flowing through trusts.
Personal income tax rates and thresholds were also adjusted, and the Payday Super measure requiring more frequent super contributions is progressing. Complying super funds retain their existing CGT treatment.
What is a simple trick for avoiding capital gains tax?
There is no simple trick. The tax system includes specific exemptions, such as the main residence exemption for your home, and the CGT discount for assets held longer than 12 months.
Some taxpayers use strategies like timing asset sales to offset gains with losses, or contributing to super to reduce taxable income. Schemes promising to avoid CGT are likely to attract the ATO’s attention.
See further:
- Exemptions and rollovers | Australian Taxation Office
- Small Business CGT Concessions | Taxrates.info
Can I put money into super to avoid capital gains tax?
You can’t avoid CGT entirely by putting money into super, but you may be able to reduce the tax impact.
If you make a personal deductible contribution to super, it reduces your taxable income, which could lower the marginal rate that applies to a capital gain.
If you contribute an asset directly to super as an in‑specie transfer, that is a CGT event and may trigger a gain at the time of transfer.
Note, From 1 July 2027, current proposals will replace the 50% CGT discount for individuals with an inflation‑based discount and introduce a minimum 30% tax rate on capital gains that accrue after that date, with some carve‑outs, including eligible new residential builds.
How will the new rules affect my SMSF’s investments through a unit trust?
If your SMSF holds units in a unit trust, you will need to check whether that trust is caught by the new 1 July 2027 CGT rules for individuals and trusts, because SMSFs themselves are excluded from the reform package.
Where the trust is subject to the new regime, it may have to apply cost‑base indexation instead of the 50% CGT discount and track gains that accrue before and after 1 July 2027, which could change the level and timing of distributions to your SMSF.
This may reduce after‑tax outcomes compared with holding assets directly in the SMSF, which continues to benefit from the existing concessional super CGT rules, but the impact will depend heavily on whether your trust qualifies as a fixed unit trust and how the final legislation is drafted.
Trustees should review their structure with their tax adviser and stress‑test “trust vs direct SMSF” ownership under the proposed rules.
See also: Tax reform | Budget 2026–27
This page was last modified 2026-06-10