Why the Proposed CGT Discount Changes Shouldn’t Scare You: A Better Way to Grow Your Wealth in South East Queensland

If you have been keeping an eye on the news lately, you have likely heard the buzz surrounding the proposed changes to the Capital Gains Tax (CGT) discount in Australia. For many property owners across Logan, Beenleigh, and the Gold Coast, these headlines can feel like a red flag. After all, when the government talks about reducing tax breaks, it usually sounds like a blow to your hard-earned profit.

However, at Ferns Finance, we believe that even if the CGT discount is wound back, it shouldn’t change your long-term wealth strategy. In fact, for most property owners in South East Queensland, the best way to "realise" your gains isn’t by selling at all.

Instead of selling and handing over a huge chunk of your profit to the ATO, there is a smarter way to move forward: releasing equity to build your portfolio.

Understanding the Proposed CGT Discount Changes

Currently, most individuals who hold an investment property for more than 12 months are eligible for a 50% CGT discount. This means you only pay tax on half of the profit you make when you sell the asset.

The new proposals being discussed in 2026 suggest a potential reduction of this discount—perhaps down to 25%—or a limit on how many properties can qualify. While this might seem like a reason to sell now before rules change, it is important to remember that such changes are almost always "grandfathered." This means properties you already own (or buy before a certain date) would likely keep the current 50% discount.

Even if you are looking at a new purchase under new rules, the focus shouldn’t be on the tax you pay when you leave the market, but on how you stay in it.

The Hidden Cost of Selling: Why Realising Gains Can Be a Loss

When you sell an investment property in areas like Tamborine or the Scenic Rim to "cash in" on your equity, you aren’t just losing the potential for future growth. You are also hit with three major "wealth-killers":

1. Capital Gains Tax: Even with a discount, you are giving a significant percentage of your profit to the government.
2. Selling Costs: Agent commissions, marketing fees, and legal costs can easily swallow 2% to 3% of your sale price.
3. Entry Costs for the Next Property: If you decide to buy again later, you will have to pay Stamp Duty all over again, which in Queensland is a substantial upfront cost.

When you add these up, you might find that after selling a property for a $200,000 profit, you only walk away with a fraction of that to reinvest.

Use our free CGT calculator to calculate the impact of proposed CGT discount changes on your property or investment sale. Compare current 50% vs proposed 33% discount rates.

The "Ferns Finance" Strategy: Use Equity as Your Secret Weapon

Instead of selling and losing your gains to tax and fees, many of our clients in the Logan and Gold Coast regions are choosing to keep the property and use the equity.

What is equity? Equity is simply the difference between what your home is worth today and what you still owe the bank. As property prices in South East Queensland continue to show resilience, many local homeowners are sitting on a "gold mine" without even realising it.

How it works as collateral:

Rather than selling to get a deposit for your next investment, we can help you perform an equity release. We work with a wide range of lenders to refinance your current loan, allowing you to use that "paper profit" as a deposit for another property.

By using your existing property as collateral:

• You avoid CGT entirely: Since you haven't sold the asset, no "taxable event" has occurred.‍
• You keep the original asset: You continue to benefit from rental income and future capital growth.‍
• You grow your footprint: You now have two assets working for you instead of one.

Local Knowledge Matters: Logan and Beyond

Whether you are a self-employed business owner in Beenleigh or a first-time investor looking at the Gold Coast market, the strategy needs to be tailored to your specific goals.

The South East Queensland corridor is unique. With infrastructure projects ramping up and a growing population, the "buy and hold" strategy has historically outperformed the "buy and flip" approach once you factor in the friction of taxes and transaction costs.

At Ferns Finance, we don’t just look at the numbers on a spreadsheet; we look at your life. We understand the local market because we live and work here too. We know which lenders are currently "investor-friendly" and who offers the best terms for equity-based lending.

Simple Terms: Common CGT and Equity FAQs

What is a "Taxable Event"?

In the world of finance, this is an action that triggers a tax requirement. Selling a property is a taxable event. Refinancing your loan to use equity is not a taxable event, meaning no CGT is triggered.

Can I use equity if I am self-employed?

Absolutely. While some big banks make it difficult for business owners, we specialise in helping self-employed clients in Logan and the surrounding areas find "Alt-Doc" or flexible lending solutions that recognise your true earning power.

Do I need a huge cash deposit for my next investment?

Not necessarily. If your current property has grown in value, that growth can often act as your entire deposit, meaning you can expand your portfolio without touching your savings.

The Bottom Line: Don't Let Tax Talk Stop Your Progress

The proposed CGT changes are a reminder that the "rules" of the game can change, but the fundamentals of wealth creation remain the same. The wealthiest investors rarely sell their core assets; they leverage them.

If you are worried about how the 2026 Budget might affect your investment plans, or if you want to find out how much "hidden" equity you have in your home, let’s have a chat.

Ready to grow your portfolio without the CGT headache?

At Ferns Finance, we make the process Simple, Smart, and Sorted. Whether you’re in Beenleigh, Logan, or the Gold Coast, we’re here to help you navigate the complexities of the Australian finance market.

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