Capital Gains Tax (CGT) Australia Guide

When you sell an asset in Australia — such as real estate, shares, cryptocurrency, or business assets — for more than you paid to acquire it, you make a capital gain.

How Capital Gains Tax Works

In Australia, CGT is not a separate tax rate. Instead, your net capital gain is added directly to your assessable income in your annual tax return and taxed at your ordinary marginal tax rate.

The 50% CGT Discount Rule

If you are an individual Australian resident for tax purposes and have held the asset for more than 12 months before selling, you qualify for the 50% CGT discount.

This means only 50% of your net capital gain is added to your taxable income.

Example Calculation

• Purchase Price: ,000
• Sale Price: ,000
• Gross Capital Gain: ,000
• Held over 12 months? Yes (50% Discount Applied)
• Net Taxable Capital Gain: ,000 added to taxable income.

Main Residence Exemption

Your primary home (main residence) is generally 100% exempt from Capital Gains Tax as long as you live in the property as your primary dwelling and do not generate rental income from it.

Calculate your CGT liability using our free Capital Gains Tax Calculator and Property CGT Calculator.