Many ASX investment experts reckon the changes to capital gains tax (CGT) will encourage a switched focus from growth to yield.
The 50% CGT discount for assets held longer than 12 months will be replaced by a cost base indexation method on 1 July next year.
The new rules grandfather existing ASX shares investments. So, the 50% CGT discount will apply to gains made before 1 July, 2027.
After that date, capital gains on existing investments, and new investments purchased thereafter, will be subject to cost base indexation.
A minimum 30% tax on net capital gains will apply.
Morgans has buy ratings on two ASX dividend shares that offer 6% to 7% annual distribution yields.
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Centuria Industrial REIT (ASX: CIP)
The Centuria Industrial REIT share price is $2.89, down 0.5% today and down 14% over 12 months.
Morgans has an accumulate recommendation on this ASX real estate investment trust (REIT).
The broker said the ASX dividend share offers a 6% annual distribution that should continue to grow.
In a recent note, Morgans said:
CIP delivered FY26 FFO of 18.2cpu and distributions of 16.8cpu, both in line with guidance but at the bottom of the upgraded 18.2-18.5cpu range, and 1% below MorgansF of 18.4cpu.
CIP produced +5.2% like-for-like NOI growth, a near record 226,200sqm of leasing completed, spreads moderating to 30%, and +$116m like-for-like valuation gains, resulting in NTA up 2.3% to $4.01/unit.
FY27 FFO guidance of 18.8-19.2cpu was above market expectations, while the 17.3cpu of distribution guidance in FY27 reflects a more modest 3% growth (vs pcp), driven by rent reversion leasing in the second half.
We rate CIP ACCUMULATE, with a $3.25/sh PT, as the 6% distribution should continue to grow as rental income grows through a mix of positive rent reversion and lease indexation.
Waypoint REIT Ltd (ASX: WPR)
The Waypoint REIT share price is $2.27, down 1.1% today and down 17% over 12 months.
Morgans also has an accumulate rating on this ASX dividend share, which offers a 7% annual distribution.
The broker commented:
WPR's 1H26 result was marginally ahead of our expectations, with management reaffirming CY26 Distributable EPS (DEPS) guidance of 17.14cps.
With limited expiries in CY27/28 (13% of NLA), WPR remains sensitive to the wider rate environment, and physical asset transactions point to some incremental softening in cap rates, albeit highly contingent on asset quality and location.
Trading at a c.7% distribution yield and 20% discount to NTA we do see value.
However, higher rates are likely to remain a headwind to earnings growth over CY27/28.
To this end, our target price remains broadly unchanged at $2.55, as we reiterate our ACCUMULATE recommendation on valuation grounds.
