50% CGT discount applies (12+ months)
This determines your marginal tax rate applied to the capital gain.
Capital Gain
$150,000.00
Tax on Gain
$24,250.00
Effective CGT Rate
16.2%
After-Tax Proceeds
$125,750.00
Capital Gains Breakdown
50.0% CGT Discount Applied
Held for 24 months (12+ months qualifies). You save $12,127.50 in tax.
Everything you need to know about CGT in Australia for 2025/26
Capital Gains Tax in Australia
Capital gains tax (CGT) applies when you sell an asset for more than you paid for it. The net capital gain is added to your assessable income and taxed at your marginal rate. There is no separate CGT rate in Australia -- it is part of your income tax.
50% CGT Discount
If you hold an asset for at least 12 months before selling, individuals get a 50% discount on the capital gain. SMSF funds get a 33.33% discount. Companies do not receive any CGT discount and pay the full company tax rate on gains.
Main Residence Exemption
Your main residence (family home) is generally exempt from CGT. However, if you rented it out or used it for business, a partial exemption may apply. Investment properties are fully subject to CGT.
Cryptocurrency
The ATO treats cryptocurrency as property for CGT purposes. Each disposal (sale, trade, or spend) is a CGT event. The 50% discount applies if you held the crypto for 12+ months. Personal use assets under $10,000 may be exempt.
ATO-Aligned: This calculator uses ATO tax rates for 2025-26. The cost base may include purchase costs, incidental costs, and capital improvements. Consult a tax professional for complex CGT calculations.
How the ATO taxes profits when you sell assets like property, shares, or crypto
What is capital gains tax (CGT)?
CGT is the tax you pay on the profit when you sell an asset for more than you paid. For example, if you bought shares for A$10,000 and sold them for A$15,000, your capital gain is A$5,000. That gain gets added to your taxable income for the year and taxed at your normal income tax rate. There is no separate CGT rate in Australia — it flows through your income tax return.
How does the 50% CGT discount work?
If you hold an asset for more than 12 months before selling, you only pay tax on half the gain. So if your gain is A$20,000 and you held the asset for over a year, only A$10,000 gets added to your taxable income. This discount applies to individuals and trusts but not companies. Super funds get a smaller discount of one-third instead of half.
What is a cost base and what can you include?
The cost base is everything you spent to buy, hold, and sell the asset. It includes the purchase price, stamp duty, legal fees, agent commissions, and the cost of any improvements. For a property bought at A$500,000 with A$20,000 in stamp duty, A$5,000 in legal fees, and A$30,000 in renovations, the cost base would be A$555,000. A higher cost base means a smaller taxable gain.
Which assets are exempt from CGT?
Your main home (principal place of residence) is usually CGT-free. Personal use assets worth under A$10,000, such as furniture or appliances, are also exempt. Cars and motorbikes are always exempt regardless of value. Depreciating assets used only for personal purposes are exempt too. However, investment properties, shares, managed funds, and crypto are all subject to CGT.
Can you offset capital losses against gains?
Yes. If you sell an asset at a loss, you can use that loss to reduce gains in the same year or carry it forward to future years. For example, if you made a A$15,000 gain on shares but a A$6,000 loss on another investment, you only pay CGT on A$9,000. You apply losses before the 50% discount. You cannot use capital losses to reduce your salary or wage income — only other capital gains.
How is CGT calculated on property?
Take the sale price, subtract selling costs like agent fees and advertising, then subtract your cost base. If you sold a rental property for A$800,000 with A$20,000 in selling costs and a cost base of A$600,000, your gain is A$180,000. If you held it for over 12 months, you apply the 50% discount, leaving A$90,000 added to your taxable income. The tax you pay depends on your marginal tax rate.
When do you report CGT to the ATO?
You report capital gains and losses in your income tax return for the financial year the CGT event happened. The CGT event usually occurs on the date you sign the contract, not the settlement date. You fill in the capital gains section of your tax return or schedule. The ATO receives data from share registries and land titles offices, so they can check your figures.
What small business CGT concessions are available?
If your business has a turnover under A$2 million or net assets under A$6 million, you may qualify for generous concessions. These include a 15-year exemption (no CGT if you held the asset for 15 years), a 50% active asset reduction, a retirement exemption up to A$500,000, and a rollover that lets you defer the gain. These can stack together to significantly reduce or eliminate CGT on business assets.
ATO-Aligned: Based on 2024-25 ATO rates and thresholds. For personal advice, speak to a qualified tax agent.
Disclaimer: This calculator provides estimates based on current ATO rates and thresholds for the 2024–25 financial year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax agent before making financial decisions. Read our terms
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