📈 Capital Gains Tax Calculator
Estimate your CGT liability on property or investments. Includes the 50% discount for assets held over 12 months.
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Capital Gains Tax in Australia — what you need to know
Capital Gains Tax (CGT) isn't technically a separate tax — it's a component of your income tax. When you sell an asset for more than you paid for it, the gain is added to your taxable income for that year and taxed at your marginal rate.
Australia introduced CGT on 20 September 1985 under the Hawke government. Before that date, capital gains were completely tax-free. Assets purchased before that date — often called "pre-CGT assets" — remain exempt from CGT when sold, regardless of how much they've grown.
- The 50% discount: If you hold an asset for more than 12 months, only 50% of the capital gain is included in your assessable income. This effectively halves the tax on long-term investments.
- Main residence exemption: Your primary home is generally fully exempt from CGT. If you've rented it out for part of the ownership period, a partial exemption may apply.
- Capital losses: Losses can be used to offset capital gains in the same year or carried forward to future years. They can't be used to offset ordinary income.
- Timing matters: Selling just before or just after the 12-month anniversary can have a massive impact on your tax bill due to the 50% discount.
🦘 Fun fact: The most valuable CGT concession in Australia is the main residence exemption. In Sydney, where median house prices have grown by hundreds of thousands of dollars, this exemption saves homeowners enormous amounts in tax — and is often cited as a factor driving demand for owner-occupied property.