Australia's new 30% minimum capital gains tax exemption for age pensioners

The Australian government is proposing a minimum 30% tax on capital gains, with an exemption for individuals receiving the age pension or other income‑support payments. The reforms are under Senate scrutiny and, if passed, will take effect on 1 July 2027.

Retirees would need to meet the means‑test for the pension, which assesses income and assets. Because large asset holdings often disqualify people from the pension, only a relatively narrow group—low‑income retirees with modest capital gains—could benefit. A simplified example shows a pensioner with a $44,999 gain could pay about $3,752 in tax, versus $13,500 for a non‑pensioner, highlighting the potential saving of roughly $9,700.

The exemption therefore mainly helps those with limited assets and low other income, while many retirees with substantial gains are unlikely to qualify for the pension and thus remain subject to the new 30% floor.