Should You Sell or Hold Your RSUs After Vesting? A 2026 Taxand Risk Guide for Australian Tech Professionals

By Mo Shouman, Principal Financial Planner, My Wealth Choice | Updated August 2026 | Reviewed against the 2026–27 Federal Budget

Quick answer: For most Australian tech professionals, the sell-or-hold decision after RSUs vest comes down to three factors: concentration risk, cashflow for the tax bill, and capital gains tax (CGT) timing. Under current law, holding vested shares for more than 12 months can halve the taxable capital gain. But the 2026–27 federal budget proposes replacing the 50% CGT discount with inflation indexation plus a 30% minimum tax on real gains from 1 July 2027 - a change that materially alters the maths of “hold for the discount”. This article explains both sides, the proposed changes, and the timing strategies we use with clients.

Why the sell-or-hold question matters

If you’ve recently had Restricted Stock Units (RSUs) vest, you’re probably asking one of the most common - and most financially important - questions:

“Should I sell my RSUs now, or hold them for future growth?”

The right answer depends on your personal goals, tax position, and tolerance for market risk. At My Wealth Choice, we help Australian tech professionals at companies like Microsoft, Atlassian, Amazon, Canva, Apple and Uber navigate this decision by analysing both CGT timing and portfolio risk, so that every action aligns with a broader wealth strategy.

When are RSUs taxed in Australia?

RSUs are taxed when they vest, not when they are granted. More precisely, tax applies at the employee share scheme (ESS) taxing point - usually vesting, or the point at which any restrictions on selling the shares lift. The market value of the shares on that day is treated as ordinary income and taxed at your marginal rate, which can be up to 47% including the Medicare levy.

From that point, the shares are legally yours. Any subsequent rise or fall in value becomes a capital gain or loss when you sell. So your choice to hold or sell after vesting determines whether you carry short-term market risk - or position yourself for long-term tax outcomes.

What does the 2026-27 Federal Budget change for RSU holders?

The 2026-27 federal budget - and the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 introduced to Parliament on 28 May 2026 proposes the most significant change to capital gains tax in a generation. If legislated, from 1 July 2027:

• The 50% CGT discount is replaced with cost-base indexation for assets held by individuals, trusts and partnerships including shares. Instead of halving the taxable gain, your cost base is adjusted for inflation, and the real gain is taxed in full.

• A 30% minimum tax applies to real capital gains accruing from 1 July 2027. If your marginal rate is already 30% or higher, which is the case for most tech professionals earning $250,000+ - this minimum itself changes little for you; losing the discount is the material change.

• Transitional rules protect gains accrued before 1 July 2027. For shares held before that date and sold later, the 50% discount would still apply to the growth up to 1 July 2027 (based on the asset’s value at that date), with indexation and the minimum tax applying only to growth after it.

Why this matters for tech professionals: indexation compensates you only for inflation historically around 2–3% a year - while the flat discount effectively sheltered half of the entire gain. For shares that grow faster than inflation, as a lot of stocks often aim to, the proposed rules are materially less generous. The long-standing “hold for 12 months and halve the tax” rule of thumb keeps its full value only for gains accrued before 1 July 2027.

Why sell your RSUs after vesting?

For many professionals, selling vested RSUs sooner rather than later makes sense.

1. Managing concentration risk

Most RSU holders already depend on their employer for their salary. If a large percentage of your investments is also tied to that same company, your financial exposure doubles.

Example: if your employer’s share price falls 30%, your job security and your wealth could be hit at the same time.

Selling part of your RSU allocation reduces this “double exposure”, freeing funds to invest across other assets and sectors.

2. Covering the tax liability

Because RSUs are taxed as income at vesting, many people sell a portion of their shares immediately to cover the tax bill. Failing to plan for this can create real cashflow pressure when the tax return arrives. And because of the 30-day rule described above, selling within 30 days of the taxing point can keep the tax position simple - the sale proceeds are taxed as income, with no separate CGT calculation for that parcel.

3. Rebalancing for long-term goals

Selling some RSUs lets you rebalance into a portfolio designed for your risk profile -diversified managed funds, ETFs, or superannuation investments.

My Wealth Choice insight: for some clients we design an automatic sell-and-reinvest plan

converting part of each vesting tranche into a diversified portfolio while holding selected shares for CGT purposes. For others who prefer to keep their shares, there are contribution and structuring strategies that may significantly reduce the effective tax on vested equity. Which approach - and how far it can go - depends entirely on individual circumstances.

Why hold your RSUs?

Holding RSUs after vesting can be rewarding if done strategically.

1. The CGT discount - while it lasts

Under current law, if you hold your shares for more than 12 months after the taxing point, you may qualify for a 50% CGT discount on any gain - meaning only half the profit is taxed.

Example: a $40,000 gain after 12 months = $20,000 taxable amount → a potential tax saving of around $9,400 at the top marginal rate of 47%.

As covered above, the 2026–27 budget proposes to replace this discount with indexation from 1 July 2027. Gains accrued before that date are expected to retain discount treatment under the transitional rules - which make reviewing your holdings before the proposed start date a genuinely time-sensitive exercise.

2. Confidence in your employer’s long-term value

If you believe in your company’s future and want to stay invested, holding RSUs lets you participate in future share price growth - provided you’ve sized that exposure deliberately rather than by default.

3. Staggered sales for tax efficiency

Rather than selling all at once, you can sell in stages across financial years - smoothing taxable income and making better use of tax thresholds.

My Wealth Choice insight: we model scenario-based outcomes using projected share prices and tax settings - now including the proposed post-2027 indexation rules - so clients can compare after-tax wealth under different sale timings before they act.

What are the risks of holding too long?

Tax benefits are never the whole picture. Delaying a sale exposes you to:

• Market volatility - share prices can drop unexpectedly, and a tax saving can be dwarfed by a price fall.

• Behavioural bias - emotional attachment to employer stock can cloud decision-making.

• Liquidity constraints - if you need cash suddenly, waiting out a 12-month holding period may not be feasible.

• Legislative change - as the 2026–27 budget shows, the tax rules underpinning a “hold”

strategy can themselves change.

As advisers, our role is to help you quantify these risks - not to speculate on share price trends.

Which timing strategies balance tax and risk?

At My Wealth Choice, we guide tech professional clients through timing frameworks that merge tax efficiency with portfolio discipline:

• Sell-to-cover. Sell just enough shares at vesting to pay the estimated tax (using the 30-day

window where appropriate). Keep the rest invested.

• The 50/50 rule. Sell half immediately; hold half for 12 months to access the CGT discount - a leg of the strategy that now needs review against the proposed post-1 July 2027 rules.

• Goal-based diversification. Link RSU proceeds to specific life goals - a home purchase,

education fund, or long-term super contributions - rather than arbitrary market timing.

• Tax-year planning. Consider selling before or after 30 June depending on your income levels and CGT position in each year.

• Pre-1 July 2027 review. For anyone holding vested shares with substantial unrealised gains, the transition to the proposed indexation rules creates a defined window in which the current discount settings still apply to accrued gains. This is exactly the kind of dated, structural change worth planning around - with advice.

These frameworks aren’t one-size-fits-all; they’re built around individual goals, income, and

tolerance for volatility.

A worked illustration: timing in action

Consider “James”, a Sydney-based software product manager - an illustrative example based on strategies we commonly implement; details are simplified and individual outcomes vary. James had $120,000 in RSUs vest in March 2024. Rather than selling everything, a two-stage sale strategy was used:

• Sold 50% immediately to cover tax and reinvest in diversified ETFs.

• Held the remaining 50% for more than 12 months, qualifying for the CGT discount under the rules then in force.

In this illustration, the modelling showed a tax saving of approximately $7,500 compared with selling everything at once - while reducing single-stock risk along the way. The point is not the specific number: it’s that sequencing, not prediction, is what created the outcome.

How My Wealth Choice helps you decide

Our tech professional clients trust us to provide clarity in the moments where emotion and money intersect. At My Wealth Choice, we:

• Project RSU vesting values and potential tax outcomes across scenarios - including the

proposed post-2027 CGT settings.

• Analyse holding versus selling with after-tax returns, not headline returns.

• Integrate RSU proceeds into your broader financial plan through The Confident Choice

System™.

• Liaise with your accountant to align tax reporting and CGT treatment.

We don’t make speculative market calls. We make structured, data-driven decisions designed to protect and grow your wealth.

Final thoughts

The decision to sell or hold RSUs isn’t about market timing - it’s about aligning your tax, cashflow, and investment strategy with your personal goals. Done well, RSUs can be one of the most powerful tools in your wealth plan. Done poorly, they can concentrate risk and forfeit tax opportunities - and with the CGT rules themselves now scheduled to change, the cost of drifting has rarely been clearer.

If you have vested RSUs or an upcoming vesting event, the right advice today may make a significant difference to your after-tax position - particularly ahead of the proposed 1 July 2027 changes. We work with tech professionals who are ready to act, not just ready to think about it. If that’s you, book a Financial Road Map Meeting.

Frequently asked questions

When are RSUs taxed in Australia?

RSUs are generally taxed at the employee share scheme (ESS) taxing point - usually when they vest, or when any disposal restrictions lift. The market value of the shares at that point is taxed as ordinary income at your marginal rate (up to 47% including the Medicare levy). Any later change in value is taxed separately under CGT rules when you sell.

Do I still get the 50% CGT discount if I hold RSU shares for 12 months?

Under current law, yes- shares held for more than 12 months after the taxing point generally qualify for the 50% CGT discount. However, the 2026-27 federal budget proposes replacing the discount with cost-base indexation plus a 30% minimum tax on real gains from 1 July 2027. Under the proposed transitional rules, gains accrued before 1 July 2027 would retain discount treatment. The legislation is before Parliament and not yet law.

How do the proposed 2026-27 budget CGT changes affect tech professionals with RSUs?

From 1 July 2027, the proposed rules would replace the flat 50% CGT discount with inflation

indexation of the cost base. For shares growing faster than inflation - common for technology stocks - indexation is materially less generous than the discount. Tech professionals holding vested RSU shares may want to review their sell-versus-hold strategy before the proposed start date, based on their own circumstances and professional advice.

Should I sell my RSUs as soon as they vest?

It depends on your concentration risk, cashflow needs, tax position and goals. Many tech

professionals sell at least enough at vesting to cover the tax liability and reduce single-stock exposure, then make a deliberate decision about the remainder. There is no universal answer - which is exactly why modelling your own numbers matters.

Take Control of Your RSUs

Book your RSU Sale & CGT Strategy Session with Mo at My Wealth Choice to model your timing options, reduce tax, and create a smarter path to wealth.

General advice disclaimer: This article contains general information only and does not take into account your personal objectives, financial situation, or needs. Please consider whether it’s appropriate for you before acting, and seek personal advice. Tax outcomes depend on individual circumstances; legislative measures referred to in this article are proposals before Parliament and may change. Mo Shouman is Principal Financial Planner at My Wealth Choice Pty Ltd (Authorised Representative No. 001247597), licensed under Beryllium Advisers Pty Ltd (AFSL 528250).