A proposed minimum 30 per cent tax on real capital gains from shares will apply to gains accruing from 1 July 2027, with financial planner Paul Benson warning that selling only small amounts may not avoid the charge for self-funded retirees.
The clarification follows confusion over how the new rules will affect people who inherit shares or gradually sell holdings. Treasury has said the minimum rate will apply to “real capital gains accruing from July 1, 2027”.
That means gains built up before the rules take effect will not be covered by the minimum tax. The charge would instead apply to gains arising after the start date.
Benson said the outcome for someone selling small parcels of shares would depend on the share price after 1 July 2027 and whether the individual received an age pension.
People receiving the age pension, including those receiving only a part pension, are specifically exempt from the 30 per cent minimum capital gains tax on gains accruing after the rules begin.
For self-funded retirees, however, the minimum tax would apply to real gains arising from that date, regardless of how small the value of the shares sold was. Benson said it might still be possible in some circumstances to sell small amounts each year and remain below the tax-free threshold, but stressed that this depended on the individual’s circumstances.
The guidance is particularly relevant to people deciding how to manage inherited shares or fund retirement through gradual sales. The value of holdings and changes in the Commonwealth Bank share price would be among the factors affecting the result.
