{"id":17675,"date":"2026-06-02T15:27:27","date_gmt":"2026-06-02T09:57:27","guid":{"rendered":"https:\/\/befreeltd.com\/au\/?p=17675"},"modified":"2026-06-19T15:30:04","modified_gmt":"2026-06-19T10:00:04","slug":"pre-1985-assets-no-longer-cgt-free","status":"publish","type":"post","link":"https:\/\/befreeltd.com\/au\/resources\/blogs\/pre-1985-assets-no-longer-cgt-free\/","title":{"rendered":"Pre-1985 Assets are No Longer CGT-Free: What Business Owners Must Know"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"17675\" class=\"elementor elementor-17675\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-250b55c e-flex e-con-boxed e-con e-parent\" data-id=\"250b55c\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-be8d4e4 elementor-widget elementor-widget-text-editor\" data-id=\"be8d4e4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>For decades, assets acquired before 20 September 1985 have remained outside Australia\u2019s capital gains tax (CGT) regime. Commonly referred to as pre-CGT assets, these holdings have included family business shares, commercial property, and long-term investment assets accumulated before the introduction of CGT.<\/p><p>The 2026 Federal Budget introduces proposed reforms that may significantly change how certain pre-CGT assets are treated, particularly where they are held through discretionary trusts or complex business structures. If implemented, these changes could create taxable events on assets that have historically remained exempt from CGT, potentially affecting succession planning, business restructuring, and long-term wealth strategies for many Australian business owners.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fd45bad elementor-widget elementor-widget-heading\" data-id=\"fd45bad\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What are Pre-CGT Assets, and Why Did They Matter?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6d72beb elementor-widget elementor-widget-text-editor\" data-id=\"6d72beb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Pre-CGT assets are assets acquired before 20 September 1985, prior to the introduction of Australia\u2019s capital gains tax system. These assets have historically remained exempt from CGT, creating long-term tax advantages for many business owners and investors. Businesses holding these assets often rely on structured compliance and\u00a0<a href=\"https:\/\/befreeltd.com\/au\/services\/tax-outsourcing\/\"><u>tax outsourcing services<\/u><\/a>\u00a0to manage reporting and ongoing tax obligations.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-60b08ea elementor-widget elementor-widget-heading\" data-id=\"60b08ea\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">The Original CGT Framework\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fd1c45d elementor-widget elementor-widget-text-editor\" data-id=\"fd1c45d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tAustralia introduced CGT on 20 September 1985. Under the\u00a0<a href=\"https:\/\/www.legislation.gov.au\/Details\/C2024C00082\" target=\"blank\" rel=\"nofollow\"><u>Income Tax Assessment Act 1997<\/u><\/a>,\u00a0assets acquired before that date were generally exempt from CGT on disposal.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2d8bf0d elementor-widget elementor-widget-heading\" data-id=\"2d8bf0d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">What Counted as a Pre-CGT Asset\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fe0f7d4 elementor-widget elementor-widget-text-editor\" data-id=\"fe0f7d4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<ul><li>Shares acquired before 20 September 1985<\/li><li>Commercial or residential property purchased before CGT commenced<\/li><li>Business goodwill and intellectual property created before 1985<\/li><li>Long-held farming and rural properties<\/li><li>Interests in older trusts and partnerships<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1828e4a elementor-widget elementor-widget-heading\" data-id=\"1828e4a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">The Scale of Pre-CGT Wealth in Australia\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bc41875 elementor-widget elementor-widget-text-editor\" data-id=\"bc41875\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tAccording to the\u00a0<a href=\"https:\/\/www.ato.gov.au\/about-ato\/research-and-statistics\/in-detail\/taxation-statistics\/\"target=\"blank\" rel=\"nofollow\"><u>ATO\u2019s Taxation Statistics<\/u><\/a>, many long-established businesses and family groups still hold significant pre-CGT assets, particularly within trusts and private company structures.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-43db8d7 elementor-widget elementor-widget-heading\" data-id=\"43db8d7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What the 2026 Budget Changed, and What It Did Not\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-55580f7 elementor-widget elementor-widget-heading\" data-id=\"55580f7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">The Core Reform<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-12a9873 elementor-widget elementor-widget-text-editor\" data-id=\"12a9873\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tThe\u00a0<a href=\"https:\/\/budget.gov.au\"target=\"blank\" rel=\"nofollow\"><u>2026\u201327 Budget measures<\/u><\/a>\u00a0include transitional rules affecting certain pre-CGT assets held within discretionary trusts from 1 July 2027.\n\nUnder the proposed reforms, gains arising after 1 July 2027 on eligible pre-CGT assets may become taxable under the revised CGT framework when those assets are eventually disposed of, with transitional valuation rules expected to apply.\n\nIn practice, the reforms may trigger a deemed disposal event for certain pre-CGT assets held inside discretionary trusts, even where no actual sale occurs.\n<ul>\n \t<li>The deemed disposal may create a taxable capital gain despite the asset not being sold.<\/li>\n \t<li>That gain may then fall within the revised CGT framework, replacing the traditional 50% CGT discount with a 30% minimum effective tax rate from 1 July 2027.<\/li>\n<\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-80badb1 elementor-widget elementor-widget-heading\" data-id=\"80badb1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">What the Budget Did NOT Change<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ec84916 elementor-widget elementor-widget-text-editor\" data-id=\"ec84916\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>It is equally important to understand what remains unchanged under the current Budget measures:<\/p><ul><li>Pre-CGT assets held personally by individuals generally retain their CGT-exempt status on direct disposal<\/li><li>The main residence exemption for an individual\u2019s primary home remains unchanged<\/li><li>Small business CGT concessions, including the 15-year exemption, retirement exemption, rollover relief, and active asset reduction, continue to apply where eligibility requirements are met<\/li><li>Pre-CGT assets held within companies are subject to a more complex position, with different treatment potentially applying compared with assets held through discretionary trusts<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-824a986 elementor-widget elementor-widget-heading\" data-id=\"824a986\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How Pre-CGT Asset Treatment Compares: Before and After<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e107edf elementor-widget elementor-widget-text-editor\" data-id=\"e107edf\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<table><tbody><tr><td width=\"180\"><p><strong>Asset &amp; Structure<\/strong><\/p><\/td><td width=\"107\"><p><strong>Before the 2026 Reforms<\/strong><\/p><\/td><td width=\"179\"><p><strong>From 1 July 2027<\/strong><\/p><\/td><td width=\"155\"><p><strong>Recommended Action<\/strong><\/p><\/td><\/tr><tr><td width=\"180\"><p>Pre-1985 asset held personally<\/p><\/td><td width=\"107\"><p>Generally CGT exempt<\/p><\/td><td width=\"179\"><p>No material change is currently proposed<\/p><\/td><td width=\"155\"><p>Review ownership structure<\/p><\/td><\/tr><tr><td width=\"180\"><p>Pre-1985 asset held in a discretionary trust<\/p><\/td><td width=\"107\"><p>Generally CGT exempt<\/p><\/td><td width=\"179\"><p>Potential deemed disposal and taxation under revised CGT rules<\/p><\/td><td width=\"155\"><p>Urgent review recommended<\/p><\/td><\/tr><tr><td width=\"180\"><p>Pre-1985 shares in a private company held through a trust<\/p><\/td><td width=\"107\"><p>Generally CGT exempt<\/p><\/td><td width=\"179\"><p>May fall within the new trust reform rules<\/p><\/td><td width=\"155\"><p>Seek specialist tax advice<\/p><\/td><\/tr><tr><td width=\"180\"><p>Pre-1985 commercial property held in a trust<\/p><\/td><td width=\"107\"><p>Generally CGT exempt<\/p><\/td><td width=\"179\"><p>Potential deemed disposal based on market value<\/p><\/td><td width=\"155\"><p>Obtain updated valuations<\/p><\/td><\/tr><tr><td width=\"180\"><p>Pre-1985 business asset held in a company<\/p><\/td><td width=\"107\"><p>Generally CGT exempt<\/p><\/td><td width=\"179\"><p>Treatment under revised CGT rules remains uncertain<\/p><\/td><td width=\"155\"><p>Review with tax adviser<\/p><\/td><\/tr><tr><td width=\"180\"><p>Pre-1985 farming land held by a family trust<\/p><\/td><td width=\"107\"><p>Generally CGT exempt<\/p><\/td><td width=\"179\"><p>Potential deemed disposal from 1 July 2027<\/p><\/td><td width=\"155\"><p>Review succession and trust structure<\/p><\/td><\/tr><\/tbody><\/table>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-971233c elementor-widget elementor-widget-text-editor\" data-id=\"971233c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tAs proposed in the\u00a0<a href=\"https:\/\/budget.gov.au\"target=\"blank\" rel=\"nofollow\"><u>Australian Government Budget 2026\u201327<\/u><\/a>\u00a0and reflected in current\u00a0<a href=\"https:\/\/www.ato.gov.au\/individuals-and-families\/investments-and-assets\/capital-gains-tax\"target=\"blank\" rel=\"nofollow\"><u>ATO guidance<\/u><\/a>, the treatment of certain pre-CGT assets held through trusts may change significantly from 1 July 2027.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-46e9001 elementor-widget elementor-widget-heading\" data-id=\"46e9001\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Who Is Most Exposed to These Changes\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-beadcfc elementor-widget elementor-widget-text-editor\" data-id=\"beadcfc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>The impact of the proposed reforms depends largely on where pre-CGT assets are held and the type of structure involved.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4822ed5 elementor-widget elementor-widget-heading\" data-id=\"4822ed5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Family Businesses Operating Through Discretionary Trusts\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-da7e42b elementor-widget elementor-widget-text-editor\" data-id=\"da7e42b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Businesses established before 1985 that hold land, goodwill, or operating assets within discretionary trusts are likely to face the greatest exposure. Under the proposed rules, certain trust-held pre-CGT assets may trigger a deemed disposal event from 1 July 2027, potentially creating substantial taxable gains.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8f6a5bb elementor-widget elementor-widget-heading\" data-id=\"8f6a5bb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Farming and Agricultural Families\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c7c2733 elementor-widget elementor-widget-text-editor\" data-id=\"c7c2733\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Many farming families have historically held rural land through discretionary trusts for asset protection and succession planning purposes. Significant increases in land values over several decades may result in considerable tax exposure if the new rules apply to those trust-held assets.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6a71a6e elementor-widget elementor-widget-heading\" data-id=\"6a71a6e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Long-Established Professional Practices\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-32c6dac elementor-widget elementor-widget-text-editor\" data-id=\"32c6dac\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Medical, legal, accounting, and financial planning practices with pre-CGT goodwill or business interests held through trusts may also be affected. Early valuation and tax modelling will become increasingly important ahead of the proposed commencement date.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0b96b8b elementor-widget elementor-widget-heading\" data-id=\"0b96b8b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Business Succession and Estate Planning\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2cac2b7 elementor-widget elementor-widget-text-editor\" data-id=\"2cac2b7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Many succession strategies have relied on the long-standing CGT treatment of pre-CGT assets. Where those assets are held within trusts, existing estate and succession plans may now require review under the revised framework.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-89c6473 elementor-widget elementor-widget-heading\" data-id=\"89c6473\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">The Cost Base Problem, and Why Records Matter More Than Ever\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-95857b6 elementor-widget elementor-widget-heading\" data-id=\"95857b6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Establishing Cost Base for Pre-CGT Assets\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-cb906dc elementor-widget elementor-widget-text-editor\" data-id=\"cb906dc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Under the proposed reforms, affected pre-CGT assets may require a market valuation as at 1 July 2027 to establish a new cost base for future CGT calculations.<\/p><p>For many assets acquired decades ago, original purchase records may be incomplete or unavailable, making valuation and documentation increasingly important.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-003f340 elementor-widget elementor-widget-heading\" data-id=\"003f340\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">What Business Owners Need to Document\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2db8c0f elementor-widget elementor-widget-text-editor\" data-id=\"2db8c0f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<ul><li>Identify assets acquired before 20 September 1985<\/li><li>Confirm whether each asset is held personally, through a company, or within a trust<\/li><li>Locate purchase contracts, settlement statements, and historical valuations<\/li><li>Obtain updated independent valuations where records are incomplete<\/li><li>Secure formal property or business valuations where required<\/li><li>Store all documentation in an organised and accessible format<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d716ee0 elementor-widget elementor-widget-text-editor\" data-id=\"d716ee0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Strong documentation and record management will be critical under the revised rules. Our\u00a0<a href=\"https:\/\/befreeltd.com\/au\/services\/bookkeeping-outsourcing\/\"><u>outsourced bookkeeping services<\/u><\/a>\u00a0help businesses maintain accurate financial records, asset documentation, and audit-ready reporting systems.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-332b42d elementor-widget elementor-widget-heading\" data-id=\"332b42d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Understanding Your Tax Rate Exposure on Pre-CGT Gains\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-cb15117 elementor-widget elementor-widget-text-editor\" data-id=\"cb15117\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>The proposed deemed disposal rules may create substantial taxable gains for long-held assets that have appreciated significantly over several decades.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-79a83fb elementor-widget elementor-widget-text-editor\" data-id=\"79a83fb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<table><tbody><tr><td width=\"194\"><p><strong>Asset<\/strong><\/p><\/td><td width=\"102\"><p><strong>Original Cost<\/strong><\/p><\/td><td width=\"152\"><p><strong>Estimated 2027 Value<\/strong><\/p><\/td><td width=\"174\"><p><strong>Indicative Tax Exposure*<\/strong><\/p><\/td><\/tr><tr><td width=\"194\"><p>Commercial property (trust)<\/p><\/td><td width=\"102\"><p>$120,000<\/p><\/td><td width=\"152\"><p>$2.4 million<\/p><\/td><td width=\"174\"><p>~$684,000<\/p><\/td><\/tr><tr><td width=\"194\"><p>Farm land (trust)<\/p><\/td><td width=\"102\"><p>$80,000<\/p><\/td><td width=\"152\"><p>$1.8 million<\/p><\/td><td width=\"174\"><p>~$516,000<\/p><\/td><\/tr><tr><td width=\"194\"><p>Business goodwill (trust)<\/p><\/td><td width=\"102\"><p>$0<\/p><\/td><td width=\"152\"><p>$600,000<\/p><\/td><td width=\"174\"><p>~$180,000<\/p><\/td><\/tr><tr><td width=\"194\"><p>Private company shares (trust)<\/p><\/td><td width=\"102\"><p>$50,000<\/p><\/td><td width=\"152\"><p>$900,000<\/p><\/td><td width=\"174\"><p>~$255,000<\/p><\/td><\/tr><\/tbody><\/table>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7509db0 elementor-widget elementor-widget-text-editor\" data-id=\"7509db0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>*Illustrative examples only based on a 30% effective tax rate. Actual outcomes depend on asset type, ownership structure, available concessions, and overall taxable income.<\/p><p>Understanding how capital gains interact with your broader tax position is critical before making restructuring decisions. Our guide to <a href=\"https:\/\/befreeltd.com\/au\/resources\/blogs\/australian-income-tax-scale\/\"><u>Australian income tax scales and marginal rates<\/u><\/a>\u00a0provides additional context on how tax rates apply across different income levels.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e7654e6 elementor-widget elementor-widget-heading\" data-id=\"e7654e6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Can Small Business CGT Concessions Help?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-74d94df elementor-widget elementor-widget-text-editor\" data-id=\"74d94df\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Yes. The small business CGT concessions remain available under the 2026 Budget and may significantly reduce the tax impact of eligible pre-CGT deemed disposal events.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-978e0d1 elementor-widget elementor-widget-text-editor\" data-id=\"978e0d1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<table><tbody><tr><td width=\"143\"><p><strong>Concession<\/strong><\/p><\/td><td width=\"179\"><p><strong>Benefit<\/strong><\/p><\/td><td width=\"299\"><p><strong>Key Requirement<\/strong><\/p><\/td><\/tr><tr><td width=\"143\"><p>15-Year Exemption<\/p><\/td><td width=\"179\"><p>The entire capital gain may be disregarded<\/p><\/td><td width=\"299\"><p>Asset held for 15+ years, and the owner is retiring or permanently incapacitated<\/p><\/td><\/tr><tr><td width=\"143\"><p>50% Active Asset Reduction<\/p><\/td><td width=\"179\"><p>Reduces the capital gain by 50%<\/p><\/td><td width=\"299\"><p>Asset must qualify as an active business asset<\/p><\/td><\/tr><tr><td width=\"143\"><p>Retirement Exemption<\/p><\/td><td width=\"179\"><p>Up to $500,000 lifetime CGT exemption<\/p><\/td><td width=\"299\"><p>Eligibility requirements and contribution rules may apply<\/p><\/td><\/tr><tr><td width=\"143\"><p>Rollover Concession<\/p><\/td><td width=\"179\"><p>Defers the capital gain<\/p><\/td><td width=\"299\"><p>Replacement asset or capital improvement required within the relevant period<\/p><\/td><\/tr><\/tbody><\/table>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-99eb073 elementor-widget elementor-widget-text-editor\" data-id=\"99eb073\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tFor some business owners, these concessions may substantially reduce the tax consequences of a deemed disposal event, particularly where long-held active business assets are involved. The\u00a0<a href=\"https:\/\/www.ato.gov.au\/businesses-and-organisations\/income-deductions-and-concessions\/incentives-and-concessions\/cgt-small-business-concessions\"target=\"blank\" rel=\"nofollow\"><u>ATO Small Business CGT Concessions<\/u><\/a>\u00a0provide several pathways to reduce, defer or eliminate eligible capital gains.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0437b0a elementor-widget elementor-widget-heading\" data-id=\"0437b0a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What Business Owners Should Do Right Now<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9ae6ee5 elementor-widget elementor-widget-text-editor\" data-id=\"9ae6ee5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Given the complexity of the proposed reforms, tailored services for <a href=\"https:\/\/befreeltd.com\/au\/services\/for-business-owners\/\">business owners<\/a> can provide valuable guidance when reviewing trust structures, succession plans, and future tax obligations.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5ac3d8c elementor-widget elementor-widget-heading\" data-id=\"5ac3d8c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Immediate Actions (Do These Now)\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ad017f0 elementor-widget elementor-widget-text-editor\" data-id=\"ad017f0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<ul><li>Identify all assets within your business structure and flag any potentially acquired before 20 September 1985<\/li><li>Confirm which entity holds each pre-CGT asset, as exposure depends on ownership structure<\/li><li>Engage a registered tax adviser to assess whether deemed disposal rules may apply<\/li><li>Obtain independent market valuations for key assets, including property, goodwill, and equity interests<\/li><li>Review eligibility for small business CGT concessions and model potential outcomes<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-93effe6 elementor-widget elementor-widget-heading\" data-id=\"93effe6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Immediate Actions (Do These Now)\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-df5de3a elementor-widget elementor-widget-text-editor\" data-id=\"df5de3a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<ul><li>Assess whether the 2027\u20132030 rollover relief window may support restructuring options<\/li><li>Compare outcomes across companies, unit trusts, or personal ownership structures<\/li><li>Update succession plans where pre-CGT assumptions were previously relied upon<\/li><li>Model eligibility for retirement-based CGT concessions where relevant<\/li><li>Ensure financial records and bookkeeping systems are complete and valuation-ready<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1097fb6 elementor-widget elementor-widget-heading\" data-id=\"1097fb6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Immediate Actions (Do These Now)\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d7cee53 elementor-widget elementor-widget-text-editor\" data-id=\"d7cee53\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<ul><li>Monitor final ATO guidance as administrative detail is released<\/li><li>Review CGT implications as part of FY2027 income tax planning. Retain valuation reports and supporting documentation for audit readiness<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-48bf0bb elementor-widget elementor-widget-text-editor\" data-id=\"48bf0bb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Accurate record-keeping and correct reporting will be essential when lodging returns involving CGT events arising from these reforms. Our guide on\u00a0<a href=\"https:\/\/befreeltd.com\/au\/resources\/blogs\/lodge-tax-return-australia\/\"><u>how to lodge a tax return in Australia<\/u><\/a>\u00a0provides a clear overview of key steps, deadlines, and requirements for both self-lodgement and agent-assisted returns.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ce47c29 elementor-widget elementor-widget-heading\" data-id=\"ce47c29\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Common Mistakes to Avoid\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-966e60e elementor-widget elementor-widget-text-editor\" data-id=\"966e60e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<ul><li>Assuming all pre-CGT assets remain exempt without checking whether they are held in a trust structure affected by the 2026 Budget changes<\/li><li>Delaying valuations until closer to 2027, when valuation demand and turnaround times are likely to increase significantly<\/li><li>Treating the rollover relief window as automatic, rather than a structured and formally executed process<\/li><li>Overlooking the availability and interaction of small business CGT concessions, which may materially reduce tax outcomes<\/li><li>Failing to update succession and estate plans that rely on historic pre-CGT treatment<\/li><li>Delaying action despite holding fiduciary responsibility as a trustee or company director for affected assets<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-90ccae0 elementor-widget elementor-widget-heading\" data-id=\"90ccae0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">The Bottom Line\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4e05f59 elementor-widget elementor-widget-text-editor\" data-id=\"4e05f59\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Pre-CGT assets have long been exempt from capital gains tax and remain so for assets held personally under the 2026 Budget framework. However, where these assets are held within discretionary trusts, the proposed changes from 1 July 2027 may create new tax exposure.<\/p><p>Given the time required for valuations, restructuring, and legal implementation, early review is essential. Befree can assist business owners and trustees in assessing their position and planning ahead.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-8f534b9 e-flex e-con-boxed e-con e-parent\" data-id=\"8f534b9\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-a2e18b2 elementor-widget elementor-widget-heading\" data-id=\"a2e18b2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Frequently Asked Questions\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-03c3f1a elementor-widget elementor-widget-n-accordion\" data-id=\"03c3f1a\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;n_accordion_animation_duration&quot;:{&quot;unit&quot;:&quot;ms&quot;,&quot;size&quot;:300,&quot;sizes&quot;:[]},&quot;default_state&quot;:&quot;expanded&quot;,&quot;max_items_expended&quot;:&quot;one&quot;}\" data-widget_type=\"nested-accordion.default\">\n\t\t\t\t\t\t\t<div class=\"e-n-accordion\" aria-label=\"Accordion. Open links with Enter or Space, close with Escape, and navigate with Arrow Keys\">\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-3940\" class=\"e-n-accordion-item\" open>\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"1\" tabindex=\"0\" aria-expanded=\"true\" aria-controls=\"e-n-accordion-item-3940\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> I acquired my business property in 1978 and have owned it personally ever since. Am I affected? <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-3940\" class=\"elementor-element elementor-element-830d95b e-con-full e-flex e-con e-child\" data-id=\"830d95b\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-caa1cd6 elementor-widget elementor-widget-text-editor\" data-id=\"caa1cd6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Personally held pre-CGT assets are not currently subject to the deemed disposal rules applying to trust-held assets. However, if the asset has ever been transferred into a trust or company structure, it should be reviewed, as tax treatment may differ.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-3941\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"2\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-3941\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> What exactly is a \u2018deemed disposal\u2019? Does the ATO actually tax me on a sale that hasn\u2019t happened? <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-3941\" class=\"elementor-element elementor-element-5ff9d0e e-con-full e-flex e-con e-child\" data-id=\"5ff9d0e\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-3ce3055 elementor-widget elementor-widget-text-editor\" data-id=\"3ce3055\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Yes. A deemed disposal treats an asset as if it were sold at market value on a specific date, even if no sale occurs. Any resulting capital gain is taxed under normal CGT rules, creating a liability without cash proceeds, which makes advance planning important.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-3942\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"3\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-3942\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> Can I transfer my pre-CGT assets out of my trust before 1 July 2027 to avoid the deemed disposal? <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-3942\" class=\"elementor-element elementor-element-b96a4ea e-con-full e-flex e-con e-child\" data-id=\"b96a4ea\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-03015be elementor-widget elementor-widget-text-editor\" data-id=\"03015be\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Not necessarily. Transferring assets before the effective date may itself trigger CGT or stamp duty depending on structure and jurisdiction. Any restructuring should be carefully modelled with tax and legal advice before action is taken.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-3943\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"4\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-3943\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> Are pre-CGT assets in a Self-Managed Super Fund (SMSF) affected? <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-3943\" class=\"elementor-element elementor-element-a0bd043 e-con-full e-flex e-con e-child\" data-id=\"a0bd043\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-86e91c4 elementor-widget elementor-widget-text-editor\" data-id=\"86e91c4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>SMSF-held assets are generally not within discretionary trust structures, so they are typically not targeted by these specific trust-based measures. However, broader CGT changes may still apply, so adviser review is recommended.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<script type=\"application\/ld+json\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"I acquired my business property in 1978 and have owned it personally ever since. Am I affected?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Personally held pre-CGT assets are not currently subject to the deemed disposal rules applying to trust-held assets. However, if the asset has ever been transferred into a trust or company structure, it should be reviewed, as tax treatment may differ.\"}},{\"@type\":\"Question\",\"name\":\"What exactly is a \\u2018deemed disposal\\u2019? Does the ATO actually tax me on a sale that hasn\\u2019t happened?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes. A deemed disposal treats an asset as if it were sold at market value on a specific date, even if no sale occurs. Any resulting capital gain is taxed under normal CGT rules, creating a liability without cash proceeds, which makes advance planning important.\"}},{\"@type\":\"Question\",\"name\":\"Can I transfer my pre-CGT assets out of my trust before 1 July 2027 to avoid the deemed disposal?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Not necessarily. Transferring assets before the effective date may itself trigger CGT or stamp duty depending on structure and jurisdiction. Any restructuring should be carefully modelled with tax and legal advice before action is taken.\"}},{\"@type\":\"Question\",\"name\":\"Are pre-CGT assets in a Self-Managed Super Fund (SMSF) affected?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"SMSF-held assets are generally not within discretionary trust structures, so they are typically not targeted by these specific trust-based measures. However, broader CGT changes may still apply, so adviser review is recommended.\"}}]}<\/script>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>For decades, assets acquired before 20 September 1985 have remained outside Australia\u2019s capital gains tax (CGT) regime. Commonly referred to as pre-CGT assets, these holdings have included family business shares, commercial property, and long-term investment assets accumulated before the introduction of CGT. The 2026 Federal Budget introduces proposed reforms that may significantly change how certain [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":17695,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-17675","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Pre-1985 CGT Asset Changes Under Australia\u2019s 2026 Budget<\/title>\n<meta name=\"description\" content=\"Learn how Australia\u2019s 2026 Budget may tax pre-CGT assets held in trusts, including deemed disposal rules, CGT exposure, and planning tips.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"twitter:label1\" 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