Question 1

We have two investment properties that we are considering selling given the Capital Gains Tax changes coming in on July 1.

Our accountant can’t tell us what to do, and a financial planner and property adviser seem conflicted in what they would advise.

What should I be considering in making this decision?

It’s understandable to want to minimise tax, but tax is only one part of the financial outcome from owning or selling an investment property.

From July 1, 2027, the CGT rules change. For eligible properties already owned before that date, however, the new arrangements don’t simply apply retrospectively to the entire gain.

Gains accrued before July 1, 2027, remain under the existing rules, including the 50 per cent CGT discount where applicable.

Gains accruing from July 1, 2027 come under the new arrangements, which replace the discount with cost-base indexation and introduce a minimum 30 per cent tax for individuals on certain net capital gains.

The other consideration is what’s happening to the value of the property itself.

Australian property markets are currently softer and conditions vary considerably between locations.

National dwelling values fell 1.1 per cent in September and were 5.2 per cent below their March 2026 peak, with some markets experiencing larger falls than others.

That matters because selling an asset at a lower price simply to avoid potentially paying more tax on future gains may not necessarily produce a better overall financial outcome.

Other factors include the rental income and expenses, debt, expected future growth, selling costs and what would be done with the proceeds after the property is sold.

There is also an important timing detail – for property, the CGT event generally occurs when the sale contract is entered into, rather than at settlement.

Minimising tax is a reasonable objective, but it is generally more useful to consider tax alongside the property’s value, income, costs and future prospects rather than viewing the tax outcome in isolation.

Question 2

I am considering renting out my home while staying full time with a parent that I care for. Will this impact my ability to use funds from the eventual sale of my property as a downsizer super contribution? I purchased and have lived in my property since January 2018.

Renting a home before selling it does not, by itself, prevent the proceeds being eligible for a downsizer contribution.

Under the current rules, a person must generally be at least 55 when the contribution is made, and the home must have been owned by the individual or their spouse for at least 10 years before it is sold.

The sale must also qualify for at least a partial main residence capital gains tax exemption.

Importantly, the property does not have to be the person’s main residence at the time of sale. A home can therefore be lived in for a period and subsequently rented without automatically losing eligibility for the downsizer rules.

For a property purchased in January 2018, the 10-year ownership requirement would not be met until around January 2028.

Where all the eligibility requirements are satisfied, an individual can currently contribute up to $300,000 of eligible sale proceeds to super as a downsizer contribution within 90 days of receiving the property sale proceeds (from settlement).

The contribution does not count towards the normal concessional or non-concessional contribution caps.

So, there are two separate issues to keep in mind: maintaining eligibility for at least a partial main residence CGT exemption and satisfying the 10-year ownership requirement.

Question 3

I’m 62, working permanent part-time and have $170,000 in super. I have a couple of big expenses coming up, including upgrading my car and dental work, and don’t want to go into debt.

If I begin a transition-to-retirement pension and draw enough to cover those costs in the first year, can I cancel the transition after that or pay money back into super?

Is there any tax burden to consider?

Yes, a transition-to-retirement income stream, or TTR, can provide access to some of your super while you continue working.

Once someone has reached preservation age, currently 60, they can generally commence a TTR and receive pension payments of up to 10 per cent of the TTR account balance each financial year, subject also to minimum pension requirements.

For example, if $170,000 was used to commence a TTR, the maximum annual pension payment would generally be $17,000 in the first year.

While technically paid under pension rules, this can provide access to a meaningful amount of cash during the year.

A TTR doesn’t have to continue indefinitely. It can be stopped, with the remaining money retained within super and rolled back to an accumulation account, subject to the applicable fund and super rules.

Money can also subsequently be contributed to super. Those contributions simply need to comply with the normal contribution rules and caps applying at the time.

Contributions can’t be added directly to an existing TTR account, so they are generally held separately in accumulation unless the pension is restructured.

Tax is another consideration. From age 60, pension payments from a taxed super fund are generally received tax-free.

While a TTR remains outside retirement phase, however, investment earnings on the assets supporting it are generally taxed within the super fund rather than receiving the retirement-phase earnings tax exemption.

So, in general terms, a TTR can provide someone over 60 who is still working with limited access to their super for current cash-flow needs, without requiring them to permanently remain in a TTR arrangement.

Paul Johnston and Linda Panaszek are financial advisers within the IFS Trusted Advice Network.

Disclaimer: The responses provided are general in nature, and while they are prompted by the questions asked, they have been prepared without taking into consideration all your objectives, financial situation or needs.

Before relying on any of the information, please ensure that you consider the appropriateness of the information for your objectives, financial situation or needs. To the extent that it is permitted by law, no responsibility for errors or omissions is accepted by IFS and its representatives.