Overview
The Australian Budget 2026–27 tax reforms introduce major changes to the Capital Gains Tax (CGT) starting from 1 July 2027. These changes affect how capital gains are calculated, introduce cost base indexation, and set a new 30% minimum tax rate floor.
We are delivering this enhancement ahead of the CGT reforms for advice practices and compliance teams, seeking an alternative to manual spreadsheet calculations across:
- CPI cost base indexation,
- the 30% minimum tax rate floor,
- investment property classifications, and
- 1 July 2027 cost base baselining
Practices need a native solution within Xplan to maintain tax accuracy and compliance across client portfolios.
We will embed a built-in, automated tax intelligence function in Xplan. By connecting data capture in Client Focus, tax calculation rules in Xtools+, and capital gain reporting in Portfolio, Xplan empowers advice practices with tools required to provide accurate CGT estimates.
Pre-requisites
Prerequisites and preparation steps will be shared before release.
Key features
The following outlines the key features and benefits which will be delivered in phases in the lead-up to 1 July 2027:
Centralised record keeping
- New CRM data fields: record pre and post-1 July 2027 cost bases, designate investment property by property type and strategic flags to capture the method of valuation.This will reduce double handling and reliance on external spreadsheets, while providing audit traceability and practice wide visibility.
Automated Xtools+ Strategy Calculations
- 30% minimum floor calculations: built-in Xtools+ modeling rules for post 2027 CPI indexation, and the 30% CGT floor. This automatically applies the relevant tax rules to help advisers model and explain potential outcomes, reducing time spent on manual calculations and improving consistency.
- 30% minimum tax floor exemptions: exemptions for Income Support recipients and new residential properties. Assist advice practices with modelling the minimum tax applicable and relevant exemptions consistently, reducing the risk of missed or incorrectly applied rules.
- A property identifier: provides the option to designate an investment property by the type of property it is. This supports advice practices with consistent property classification so the relevant taxes can be applied and explained more easily.
- Option for CGT calculation method for certain investments: option to apply the legacy 50% CGT discount or the CPI-indexed cost base to capital gains from new residential properties. Advice practices can model the applicable cost-base approach and compare potential capital gains outcomes without relying on manual calculations.
- Negative gearing quarantining: negative gearing losses from residential properties purchased on or after 12 May 2026 that are not New Residential Dwellings.
- Working Australians Tax Offset (WATO) calculations: the non refundable WATO of up to $250. This includes the applicable offset in calculations automatically, reducing the manual work.
Multi Regime Portfolio Analytics & Reporting
- Multi Regime Analytics: From 1 July 2027, updates to Portfolio CGT screens introduce new dedicated display columns to clearly distinguish pre reform gains, post reform gains, and reset cost bases. This gives advice practices complete visibility of the different gain categories so they can track, analyse and present client positions more clearly.
- Updated Portfolio Reports: Existing Portfolio reports will be updated with revised capital gains logic. Provide consistent reporting of pre- and post-reform capital gains without requiring manual calculations in spreadsheets.
What you need to do
There is nothing you need to do right now. Before new features are released, we will share the relevant timing and preparation information here.
Related content
While we work through what changes will be needed, we have put together an Interim Xtools+ Capital Gains Tax & Negative Gearing modelling guide to assist with practical examples.
Download your Xtools+ CGT & negative geraring modelling guide here.
Additional articles are available here:
Further updates will be provided as work progresses.
Sharing your feedback
Your feedback is an important part of this journey. If you have questions or would like to share your experience, you can:
- Speak directly with your Relationship Manager
- Contact us via Iress Connect.
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