Quick answer: There is no single right time to sell, but the CGT changes proposed for 1 July 2027 put a possible date on the decision. If your net yield sits under 2 per cent or you are retiring in three to seven years with large gains, selling before the deadline usually saves tax. Otherwise, holding still wins.
You have held an investment property for a decade and watched the gain stack up. The tax rules that protected that gain are set to change on a specific date, so the question stops being “should I sell sometime” and becomes “should I sell before 1 July 2027.” The legislation has not completed its passage through Parliament, so treat the date as a planning assumption rather than settled law.
The 1 July 2027 Deadline: What Changes and What Doesn't
The headline change is the end of the 50% CGT discount. From 1 July 2027, the Government will replace the 50 per cent CGT discount with a discount based on inflation and introduce a minimum 30 per cent tax on gains. The Treasury Laws Amendment (Tax Reform No.1) Bill 2026 passed the House of Representatives on 4 June 2026.
The change is not retrospective. The reforms only apply to gains arising after 1 July 2027, and existing property holders are grandfathered. If you bought a new build, you can choose the 50 per cent discount or the new arrangements.
Negative gearing changes on the same date. It is limited to new builds from 1 July 2027, while existing arrangements remain unchanged for all properties held before Budget night.
So the sell-or-hold question now has a deadline attached. The date to circle is 1 July 2027. Read the full CGT changes for property investors if you want the mechanics in one place.
The Financial Signals That Say Sell
Yield is the simplest filter. Net rental yield above 4 per cent with no financial stress generally means hold. Below 2 per cent, with the property costing more than it earns, generally means consider selling.
Run your own numbers. A property worth $700,000 that nets $12,000 to $15,000 a year after expenses gives you a return of under 2 per cent. Selling and investing the proceeds in a diversified portfolio or inside super may generate better, more predictable income with far less hassle. Here's how to calculate your rental yield properly before you decide.
Selling before retiring tends to work best when the property is costing more than it earns, when you need the capital to fund the early years of retirement, or when it is dragging down your Age Pension eligibility.
The 6-Year Rule: When You Can Sell CGT-Free
If your investment property was once your home, the 6-year rule changes the calculation. You can treat a former home as your main residence for up to 6 years after you stop living in it while it is rented out. If you don't use it to produce income, you can treat it as your main residence for an unlimited period after moving out.
The catch is the limit. If you use your former home to produce income for more than 6 years in one absence, it becomes subject to CGT for the period after the 6-year limit. The 6-year period applies separately to each period of absence, so moving back in resets the clock.
One group misses out. If you are a foreign resident when a CGT event happens, you generally aren't entitled to claim the main residence exemption.
How Much CGT Will You Actually Pay?
For a property held more than 12 months, the 50% discount halves the gain. The timing of the CGT event is the contract date, not settlement, so the date you sign, not the date you settle, is when the gain is made.
Your cost base works in your favour. It includes the purchase price plus incidental costs like legal fees, stamp duty and agent commissions, but not amounts you have claimed as a tax deduction.
Timing the sale against your income can be worth real money. Selling in your first retirement year with $0 employment income, where a $200,000 gain is the only taxable income, produces CGT of roughly $55,000 to $65,000. The difference of $20,000 to $30,000 is not trivial. And there is no CGT exemption for retirees: you pay CGT on a profitable sale regardless of your age or retirement status.
Sell Before July 2027, or Hold?
The factors pointing toward selling before July 2027 are specific: a long holding period with large unrealised gains, and a retirement timeline of three to seven years. If you sit in that overlap, the deadline is real for you.
| Situation | Lean |
|---|---|
| Net yield above 4%, no financial stress | Hold |
| Net yield below 2%, costing more than it earns | Sell |
| Long holding, large unrealised gains, retiring in 3-7 years | Sell before July 2027 |
| New build investor | Choose the 50% discount or the new arrangement |
Strong rental yield cuts the other way. If your net yield is above 4 per cent and the property pays for itself, holding past the deadline may cost you little.
Knowing where you sit on this table needs the same comparable sales analysis you used when you bought. PropSpotter provides that for buying, and the same read on your suburb's trajectory is what tells you whether to sell now or hold. Start with comparable sales to see what your property is actually worth today.
Where the Proceeds Go
Selling is only half the decision. The money has to go somewhere, and super caps set the bounds. The non-concessional (after-tax) cap is $130,000 per year from 1 July 2026. The concessional (pre-tax) cap is $32,500 per year from 1 July 2026, including employer contributions.
For a large windfall, the bring-forward rule lets you use up to three years of non-concessional caps in one year, $390,000 from 1 July 2026, if your total super balance is under $2.1 million.