$439,624
Australia
Should I sell my investment property? Hold vs sell calculator Australia
Sell before 1 July 2027 or hold? Only the growth after that date is taxed the new way.
With the CGT discount changing on 1 July 2027, many owners are asking whether to sell first. This calculator compares selling now with holding for a few more years on equal terms: both paths repay the loan, pay the tax that applies to them, and reinvest spare cash at the same after-tax return.
Keeping it leaves you $77,390 better off after 5 years
At 5.0% a year after tax on money released by selling, selling wins if the money would earn more than 9.0% a year after tax.
$362,234
9.0%
| Sell now | Sell in year 5 | |
|---|---|---|
| Sale price | $900,000 | $1,148,653 |
| Selling costs | -$22,500 | -$28,716 |
| Mortgage repaid | -$560,000 | -$560,000 |
| Tax on the sale | -$33,680 | -$86,638 |
| Cash from the sale | $283,820 | $473,299 |
| After-tax rental cash over the years | — | -$30,565 |
4 assumptions in these figures
- Assumption: NSW land tax rates and thresholds are held at today's levels in later years, while land value grows with the price.
- Assumption: No rules are published yet for 2028-29 to 2030-31; the 2027-28 rules and thresholds are held constant.
- Not yet settled: “New residential dwelling” depends on a ministerial instrument not yet made (Treasury Tranche 2). New-build results assume the property will qualify.
- Announced: The 14% rate for 2027-28 is legislated but the ATO rates page only lists years to 2026-27.
Worked example
A property worth $900,000, bought for $700,000 with $27,000 of stamp duty and $560,000 still owing. Selling in 2026–27 uses the current rules — pre-reform: 50% discount — for $33,680 of tax, leaving $283,820 after costs and the loan. At 5% a year after tax that grows to $362,234 over 5 years.
Holding for 5 years ends with a sale under the new regime (deemed sale at 30 June 2027 + indexation + 30% minimum) and a total of $439,624 including reinvested cash flow. Holding is ahead by $77,390; the answer flips at an alternative return of 9.0% a year.
If you would live in it instead
If you are thinking of moving in rather than selling, OwnerCost works out the cost of owning the home you live in, including stamp duty.
Selling before or after 1 July 2027
A sale before 1 July 2027 gets the 50% discount on the whole gain. After that date, only the growth to 30 June 2027 keeps the discount; later growth is indexed and subject to the 30% minimum (Tax Reform No. 1 Act 2026). For many owners the tax difference on a few years of growth is small next to the rent, growth and costs of selling — which is what this comparison measures.
What this calculator does not include
- The main residence exemption and the six-year absence rule.
- Small business CGT concessions.
- Capital losses from other assets.
- The apportioning method alternative to a 30 June 2027 valuation.
Questions landlords ask
Should I sell before 1 July 2027 to keep the CGT discount?
Not necessarily: growth up to 30 June 2027 keeps the discount even if you sell later. Run your numbers — the rent and growth you give up often matter more.
How is the 30 June 2027 value set?
By default, market value just before 1 July 2027 (s.112-155(3)). A later determination may allow an apportioning method instead.
Tax rules: AU registry v1.0.0, last reviewed 2026-09-30. Figures in the text use the default inputs above. Sources and method.