Australia capital gains tax rollover protections to end in 2027

Changes to Australian capital gains tax (CGT) laws are set to remove long-standing rollover protections starting July 1, 2027. Since the introduction of CGT in 1985, rollover provisions have allowed individuals facing major life events, such as death or divorce, to defer tax liabilities until an asset is actually sold.

Under the upcoming changes, this protection will largely disappear for assets not acquired after the July 2027 deadline. This shift means tax can be triggered even if an asset has not been sold and no proceeds have been received. Such a change could potentially force the sale of family homes or significant investment portfolios to cover tax liabilities within deceased estates.