Australia’s proposed capital gains tax (CGT) reforms are shaping up as one of the most significant tax changes in decades, and a key detail is often being overlooked: the measures are not limited to residential property.

Treasurer Jim Chalmers has confirmed that the government’s planned reforms would apply across virtually all CGT assets held by individuals, trusts and partnerships, including shares, managed funds, cryptocurrency investments and business assets. The changes would replace the current 50 per cent CGT discount with an inflation-indexation model and introduce a minimum 30 per cent tax rate on net capital gains from 1 July 2027.

The government argues that applying the reforms across all asset classes is necessary to avoid creating distortions in investment decisions. Treasury modelling suggests the broader approach improves tax system integrity and prevents investors from simply shifting capital between asset classes to access more favourable treatment.

Critics, however, say the decision extends well beyond the government’s stated objective of improving housing affordability. Business groups, investment advisers and market commentators have warned that taxing gains more heavily across shares and other productive investments could reduce risk-taking, discourage entrepreneurship and affect long-term wealth creation.

Professional services firms analysing the Budget measures note that the reforms are designed to apply broadly across all CGT assets rather than targeting housing alone. Transitional arrangements would mean gains accrued before 1 July 2027 continue to receive current treatment, while gains accruing after that date would be taxed under the new framework.

The breadth of the reforms has become one of the most contentious aspects of the proposal. Online investor communities have questioned why assets such as shares and business investments are being included when the government’s public messaging has largely focused on housing affordability and property speculation.

With legislation now before Parliament and consultation continuing on possible carve-outs for small and start-up businesses, the final shape of the reforms remains uncertain. What is clear, however, is that the proposed CGT overhaul reaches far beyond the housing market and would affect investment decisions across the Australian economy.