Labour plans a 28% gains tax on most property sales from 1 July 2027, excluding family homes and farms.

You pay capital gains tax only when you sell an asset for more than you paid.

The taxable gain is the sale price minus what you paid and allowable costs.

Holding an asset does not trigger tax.

If this plan takes effect, Coasties selling rentals or other investment properties from 1 July 2027 would face a 28% tax on profit.

Family homes would remain out of scope, as would farms.

Key points:

• Applies on sale, not while you hold.

• Rate: 28% on the profit from eligible property.

• Exclusions: family homes and farms.

• Start date proposed: 1 July 2027.

What it could change locally: timing.

Some owners may weigh selling before the start date, keeping properties longer, or budgeting for tax at sale.

Retirees planning to downsize an investment, parents freeing equity to help adult children, and small landlords reviewing cash flow will all need to run the numbers.

Simple example: buy an investment property for $900k, sell later for $1m. Ignoring costs, the $100k gain would face a 28% tax, leaving $72k after tax.

If you do not sell, no tax is due.

For the Hibiscus Coast, where many households hold one rental as a nest egg, the after-tax return from a sale could be lower than expected after 1 July 2027.

Plans to renovate, refinance, or sell may shift accordingly.

Bottom line for Coasties: no sale, no tax.

Sell an eligible property on or after 1 July 2027 and the profit would be taxed at 28% under Labour’s plan.

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