The 2027 CGT Reset: What It Means for Shares and ETFs

Just before 1 July 2027, the tax law will treat every share and ETF unit you own as sold - and bought straight back. Most people have heard the 50% CGT discount is ending. Almost nobody has heard what happens to their losses: from July 2027, the same loss can be worth half as much. TIMESTAMPS 0:00 Every share treated as sold 0:37 No valuation needed for listed shares 0:58 It's law - the three changes 2:00 The deemed sale on 30 June 2027 2:35 Anika's ETF, step by step 3:27 Should you sell before July? 4:10 The loss rule that catches people 4:35 The four buckets 4:55 Anika's losses 5:54 Anika's loss on one card (screenshot this) 6:07 The dead zone 6:47 Wash sales 7:06 The 30% minimum tax 7:54 Who's exempt 8:09 Age Pension and deeming 8:20 ETFs, unlisted and suspended stocks 8:48 The records to keep 9:07 The reset in one breath WHAT'S IN THIS ONE (Treasury Laws Amendment (Tax Reform No. 1) Act 2026) - The three changes for shares held outside super: the 50% discount ends, the cost base is indexed to CPI, and a 30% minimum tax applies to the part of a gain made after 1 July 2027 - The deemed sale on 30 June 2027 - why listed shares and ETFs need no paid valuation, and why the gain to that date keeps the 50% discount - Anika's ETF: bought for $50,000 in 2020, worth $80,000 on the night, sold for $100,000 four years later - about $26,700 taxable vs $25,000 under the old rules (2.5% inflation assumed) - Why selling before July doesn't lock in anything the law doesn't already - The loss rule: losses must be applied to frozen, discounted gains first, in a fixed four-bucket order - so a $10,000 loss can remove only $5,000 of taxable gain - The dead zone: indexation can't create or increase a loss - Deferred losses, wash sales, and carried-forward losses - The 30% minimum tax as a floor - the $45,000 quick check, and a retiree example with a $2,400 top-up - The exemption for Age Pension, JobSeeker, DSP, Carer Payment and other income-support recipients (written into the Act, s119-15) - ETF distributions, unlisted and suspended stocks, and the records to keep IMPORTANT - ANIKA'S FIGURES ARE ILLUSTRATIVE: 2.5% inflation assumed; the loss example leaves out her ETF's new slice and uses a 30% rate before the Medicare levy. The minimum-tax example uses 2027-28 rates before offsets and the Medicare levy. How the changes apply to capital gains passed out in ETF and managed-fund distributions is still being finalised in the second tranche of legislation. Subscribe to see all the latest videos: https://www.youtube.com/@aussiewealthwithemma?sub_confirmation=1 GENERAL ADVICE DISCLAIMER This video is general information only. It does not take into account your objectives, financial situation or needs, and it is not personal financial advice. Tax outcomes depend on your own circumstances - speak with a registered tax agent or licensed financial adviser before acting. A note on how this is made Every script starts with real research and is checked against current ATO and Services Australia figures - that part isn't automated. AI tools produce the narration and visuals. I write, verify, and stand behind every word. Thanks for being here. #AussieWealth #Superannuation #RetirementAustralia #CapitalGainsTax #CGT2027 #ShareInvesting #ETFsAustralia #TaxReform