⏱ The new rule starts 1 July 2027. Parliament returns 11 August — the petition opens then, for just 4 weeks. Add your name to the open letter now.

The New CGT Rule Coming Home Won't Fix | Sign the Petition | ODIN

Official Parliamentary E-Petition Campaign

The New CGT Rule That Coming Home Won't Fix

From 1 July 2027, a single period living overseas can permanently strip your Australian property of inflation protection — even if you move home years before you sell, and even for property you already own. Watch the 5-minute breakdown, then help us ask Parliament to fix it.

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Takes 60 seconds · Backs the open letter now + the petition when it opens mid-August · Sign from anywhere in the world

Backed by ODIN Tax & ODIN Mortgage — the Australian expat specialists

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The update

What actually changed — and why most expats will miss it

The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 became law on 26 June 2026. From 1 July 2027 the familiar 50% CGT discount is replaced with cost-base indexation — your purchase cost is adjusted for inflation, so residents are only taxed on their "real" gain. Buried in the eligibility rules is the part that matters if you live overseas, or ever will:

The testing period — section 114-25(2)

To qualify for indexation on a property, you must not have been a foreign or temporary resident at any point between 1 July 2027 and the day you sell. Not "on average". Not "mostly". Any point. One period of non-residency disqualifies the property permanently — returning to Australia restores nothing.

	Old rule (until 30 June 2027)	New rule (from 1 July 2027)
While overseas	No 50% CGT discount for non-resident years (since 2012)	No indexation for non-residents
When you move home	✔ Discount restored pro-rata — every resident year counts	✘ Indexation permanently unavailable if you were ever a non-resident during the testing period
Property you already own	Apportioned by residency, fairly	✘ No exemption — existing holdings are caught the same as new purchases

Current as at 16 July 2026. Legislative details may be refined by regulation before 1 July 2027.

Who this hits

What it means for you

If you're an expat now

Already overseas, own Australian property

Any time as a non-resident after 1 July 2027 permanently blocks indexation on that property — even if you move home for 20 years before selling.
Owned your property for a decade as a resident before leaving? Under the old rules those years earned back your discount. Under the new rule, they count for nothing.
You'll be taxed on paper gains that are purely inflation — on top of losing the CGT discount (2012) and the main residence exemption (2020).

If you might go overseas

In Australia now — but a posting, move or opportunity could come

A future stint abroad — even a short one taken years from now — can disqualify property you own today from inflation protection, forever.
The rule doesn't ask "are you a resident when you sell?" It asks "were you ever not a resident during the window?" One yes is permanent.
Your future home is safer: the main residence exemption and six-year rule are unchanged. It's investment property this catches.

The pattern this breaks

Every other expat CGT rule rewards coming home — the discount was restored pro-rata, the six-year rule protects your home. This is the first rule where returning restores nothing. Around one million Australians live overseas, and most intend to return. We think Parliament should make the rule proportionate: index for the years you're a resident, the same fair treatment the discount has had since 2012. That's exactly what the petition asks.

How you can help

Three steps, five minutes

Watch the 5-minute breakdown

Understand exactly what changed and whether your properties are exposed — plain English, worked examples, no jargon.

Back the letter now, sign the petition in August

Add your name to the open letter today. When Parliament returns on 11 August, the official e-petition opens — we'll email you the link. 60 seconds to sign, then click the confirmation email or your signature doesn't count.

Know your own numbers

Whatever Parliament decides, the rule starts 1 July 2027. Book a 1-on-1 with ODIN to map your residency timeline against it before then.

The petition & the letter

Act now: back the letter. The petition opens mid-August.

Parliament is in winter recess until 11 August, so the official e-petition can't open until the Petitions Committee returns. We're not waiting: our open letter goes to the Government now, carrying the name of every supporter — and everyone who signs up gets the petition link the moment it's live.

Open letter to the Australian Government

Re: The CGT indexation testing period — a permanent penalty on Australians who work overseas

To the Hon. Treasurer and the Hon. Assistant Treasurer,

We write on behalf of Australian citizens living and working overseas — and the many more Australians whose careers may one day take them abroad — regarding the capital gains tax indexation eligibility condition introduced by the Treasury Laws Amendment (Tax Reform No. 1) Act 2026.

From 1 July 2027, cost-base indexation replaces the 50 per cent CGT discount. We accept the policy intent of taxing real gains rather than inflationary ones. Our concern is the testing period: a taxpayer who is a foreign or temporary resident at any time between 1 July 2027 and the sale of an asset is permanently denied indexation on that asset — including assets already owned today, and no matter how many years the taxpayer subsequently lives in Australia as a resident before selling.

This breaks with a principle that has served the system well. Since 2012, the CGT discount has been apportioned so that years of Australian residency still count. The six-year absence rule likewise recognises that Australians go abroad and come home. The testing period is the first rule of its kind under which returning to Australia restores nothing: a three-year posting overseas can extinguish inflation protection on a family's investment property for good.

Approximately one million Australian citizens live overseas. They are among Australia's strongest ambassadors for trade, investment and skills, and most intend to return. A rule that taxes them on purely inflationary gains — while recognising none of their years as Australian residents — penalises Australians for taking their careers abroad, and penalises them again for coming home.

We respectfully ask the Government to amend the Income Tax Assessment Act 1997 so that cost-base indexation is apportioned for periods of Australian tax residency, consistent with the pro-rata treatment applied to the CGT discount since 2012, before the provisions commence on 1 July 2027.

We would welcome the opportunity to discuss the practical impact of this provision with Treasury.

Respectfully,
ODIN Tax & ODIN Mortgage, on behalf of the undersigned Australians at home and overseas
Joined by the supporting organisations listed below

Your position

The petition is the fight. Your plan can't wait for it.

Whether or not Parliament amends the rule, it starts 1 July 2027 — and it changes the maths on holding, selling, refinancing and buying. A 1-on-1 with ODIN maps your residency timeline and every property against the new rules, before decisions get made for you.

Tax

Tax Diagnostic — CGT Position Review

Residency timeline mapped against the testing period · asset-by-asset key dates (purchase, Budget night, 1 July 2027) · record-keeping gaps · your options before the rules start. Fee is tax-deductible and credited against any engagement.

Book My Tax Diagnostic Conducted by ODIN Tax — Registered Tax Agent 26295891

Mortgage

Mortgage Strategy Call

The reform changes hold vs sell vs restructure decisions. If buying, refinancing or restructuring is on your horizon — new dwellings are treated differently under the new rules — talk it through with an expat lending specialist.

Book a Mortgage Strategy Call ODIN Mortgage — Australian expat home loan specialists

Trusted by 2,200+ Aussie Expats Worldwide

*These reviews reflect individual personal experiences. Outcomes may vary depending on individual circumstances and are subject to assessment.

Questions

Frequently asked questions

Why isn't the petition open yet?

House of Representatives e-petitions must be approved by the Standing Committee on Petitions before they open, and Parliament is in winter recess until 11 August. Our petition has been submitted and is in the queue — we expect it live mid-August, and it then collects signatures for exactly 4 weeks. That's why the open letter matters: it's the action you can take today, and everyone who backs it gets the petition link the moment it opens.

I live overseas — can I actually sign the petition?

Yes. Signers confirm they are an Australian citizen or resident — Australian citizens living anywhere in the world can sign. After signing, click the confirmation email from the Parliament website or your signature won't be counted.

Does this rule apply to property I already own?

Yes. The testing period runs from 1 July 2027 until the date you sell, regardless of when you bought. There is no exemption for existing holdings.

If I move back to Australia, doesn't my tax position recover?

Not under this rule. Under the current rules, returning restores the CGT discount pro-rata. Under the new rule, one period of foreign residency during the testing window disqualifies the property from indexation permanently — no matter how long you're home before selling.

What if I sell before 1 July 2027?

The indexation regime and its testing period only start on 1 July 2027. Sales before then are taxed under the current rules. Whether selling earlier or later is right for you depends on your numbers — that's a diagnostic conversation, not a headline decision.

Does this change the main residence exemption or the six-year rule?

No. Both are unchanged by this reform. This rule catches investment property; a home that qualifies for the main residence exemption is assessed under those separate rules.

What exactly does the petition ask for?

One thing: amend the law so cost-base indexation is apportioned for periods of Australian tax residency — the same pro-rata fairness the CGT discount has had since 2012 — instead of being permanently denied after any period overseas.

Is signing worth it? Do petitions actually do anything?

E-petitions that gather significant signatures are presented in the House of Representatives and referred to the responsible Minister for a formal response. A large signature count puts the issue on the public record and gives MPs a reason to raise it. It's not a guarantee — it's how the issue gets heard.

Is anything on this page tax advice?

No — this page is general information only and doesn't consider your personal circumstances. Your outcome depends on your residency timeline and assets. For advice you can act on, book a 1-on-1 with a registered tax agent.

One rule. One permanent penalty.
One chance to be heard.

The letter goes to the Government with every name on it. The petition opens mid-August — for just 4 weeks. If you own Australian property — or ever plan to come home to one — this is your 60 seconds.

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General information only. This page is current as at 16 July 2026 and does not constitute tax, financial, credit or legal advice. The CGT indexation testing period reflects the tax reform legislation as passed; details may be subject to amendment or regulation before 1 July 2027. Your individual circumstances determine your tax position — consult a registered tax agent or licensed professional before acting. Worked examples are hypothetical. ODIN is not affiliated with the Parliament of Australia; the petition is hosted on the official Parliament website.

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