CGT Policy Simulator

Discount or indexation — which saves more tax?

Cost base (what you paid) $400,000

Years held 10 yrs

Expected annual growth 7.0%

Indexation saves you

Move a slider to compare the two methods.

Tax payable — 50% discount (current law) $0

Tax payable — indexation (proposed) $0

Assumes an individual investor, 32% marginal tax rate, 2.5% p.a. CPI indexation, and no prior capital losses — your real numbers may differ. Compares the current 50% CGT discount against the proposed pre-1999-style indexation method reported for the May 2026 Federal Budget. Indicative only. Not financial advice.