Investors Rush to Decode New Australian Capital Gains Tax Rules

Investors are racing to assess the impact of a revamp of Australia’s tax rules on gains from stocks, bonds and property, with wealth managers warning it could upend trust structures and boost demand for safer, income-generating assets.

Australia replaced a 50% discount on capital gains with cost base indexation and a 30% minimum tax rate, the annual budget on Tuesday showed. The change is expected to raise the effective tax rate on capital gains, as part of tweaks the center-left ruling Labor party said were designed to create a fairer system. Rules permitting property investors to deduct losses from income ...