My wife has no taxable income. Will she have to pay CGT under the new rules?

July 8, 2026 — 3:01am

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My wife does not have to lodge a tax return because her annual income is less than $10,000, made up entirely of bank interest and share dividends. We are not eligible for the age pension because of my taxable defined benefit pension. Under the proposed capital gains tax changes, am I correct in thinking that if she sells shares after June 30, 2027, she could have to pay the new 30 per cent minimum tax on the capital gain, even though her income is so low? That hardly seems fair.

You are correct. It is unfair, and another example of the unintended consequences flowing from the Budget. Because your defined benefit pension makes you ineligible for the age pension, your wife misses out on the proposed pensioner exemption even though she has almost no taxable income.

As a result, she could still pay the new 30 per cent minimum tax on capital gains realised after June 30, 2027, effectively losing the benefit of both the tax-free threshold and the 16 per cent tax bracket.

If she has owned the shares for many years, the gain will be apportioned between the pre- and post-June 30, 2027 periods, but the calculation will be much more complex. It would be sensible to seek advice on whether selling before then is worthwhile.

If either of you is under 75, it may also be possible to contribute the proceeds to super as a non-concessional contribution, where future earnings and gains would generally be outside the proposed rules.

My super will soon hit the $2m cap. What should I do with the excess?

Paul BensonMoney contributor

I have an investment property that I purchased in 2004 for $250,000. If I have it valued on June 30, 2027, at $850,000 to establish the cost base, then sell it in 2028 for $850,000, or even $800,000, what would happen? This seems a........

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