Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (49 of 2026)

Schedule 1   CGT adjustments

Part 1   Main amendments

Income Tax Assessment Act 1997

36   At the end of section 115-125

Add:

Indexation may be able to be chosen as an alternative

(6) If the percentage that would result from this section for you and the *discount capital gain is 60%, then, despite subsection (2), the following person may choose for this section not to apply to the discount capital gain:

(a) if you make the discount capital gain in the way described in subparagraph (2)(b)(i) - you;

(b) if you make the discount capital gain in the way described in subparagraph (2)(b)(ii) - the trustee of the trust.

Such a choice by the trustee applies to you in a similar way to a choice made by you for a gain covered by paragraph (a).

Note: Instead, the cost base of the CGT asset may be able to be indexed (see subsection 110-36(1A)).