Capital Gains Tax Starts
the Day You Buy

Most people think about capital gains tax when they sell. By then it's too late to find the stamp duty receipt, the inspection invoice or the date you moved in. The tax is worked out from records you collect over years, starting the day you buy. Here's what to keep, and two free checklists to keep it all in one place.

Why Records Matter

Your accountant works out the tax from your cost base. That's the purchase price plus a long list of other costs: stamp duty, legal fees, the buyer's agent fee, inspections, improvements, and the costs of selling.

If you can't show a cost, it usually doesn't count. On a property held for ten or twenty years, missing receipts can mean paying more tax than you need to. The ATO also asks you to keep capital gains records for at least 5 years after you sell.

Your accountant does the maths. Your job is to hand them everything.

What the 2026 Budget Changed

For investors, the rules are changing, which makes good records more important.

• The 50% discount is being replaced. From 1 July 2027, for property bought after 7:30pm AEST on 12 May 2026 (Budget night), the gain is adjusted for inflation and a minimum 30% tax rate applies.
• Bought before Budget night? Growth up to 1 July 2027 keeps the old 50% discount. Growth after that is taxed under the new system, so you'll need a valuation around 1 July 2027.
• Pre-20 September 1985 property has always been exempt. Gains after 1 July 2027 will be taxed.
• Family trusts: a 30% minimum tax on trust income starts 1 July 2028.

When You Buy

• Signed contract of sale. The contract date, not settlement, is usually the date you acquired the property for tax.
• Settlement statement and stamp duty receipt. Stamp duty usually forms part of your cost base.
• Invoices for buying costs: conveyancing, legal, buyer's agent fee, building and pest inspection, valuation and survey fees.
• How it's owned. Whoever is on the title pays tax on their share. Confirm joint, tenants in common, company or trust with your accountant before settlement.
• A tax depreciation schedule for investment property. Capital works deductions you claim reduce your cost base later, so keep every schedule.

While You Own It

• Receipts for improvements. Renovations, extensions, a new kitchen or bathroom, landscaping. Improvements usually add to your cost base. Repairs are normally claimed as a deduction instead. Take before and after photos.
• Each year's tax return filed with the property records, so your accountant can see what's already been claimed.
• Move-in and move-out dates if you ever live in it, or rent out a former home.

When You Sell

• Talk to your accountant before you sign. The sale contract date usually decides which financial year the gain falls in.
• Selling cost invoices: agent commission, advertising, styling, legal and conveyancing.
• ATO clearance certificate. Australian residents need one before settlement, whatever the price. Without it the buyer must hold back 15% of the price for the ATO. Apply early, they last 12 months.
• Capital losses from other assets can usually offset the gain. Tell your accountant about any.

If It's Your Home

Your main residence is usually free of capital gains tax. The records that keep it that way are simple, and almost impossible to recreate later.

Free Checklists

We put all of this into two printable checklists, one for investors and one for home buyers. Print it, fill in the property and your accountant's name, and keep it with your contract.

Based on ATO guidance and the 2026 Federal Budget announcements. Current as at October 2026.