Property CGT Calculator Australia (2026–27)
Calculate your Capital Gains Tax (CGT) on Australian residential property sales. Model the 5-element cost base, stamp duty additions, Division 43 depreciation write-backs, 50% CGT discount, and ATO marginal tax liabilities.
1. Property Acquisition & Sale Figures
2. Cost Base Elements (Stamp Duty, Agent Fees, Renovations)
3. CGT Concessions & Ownership Details
0% for pure investment property; 100% for full primary residence; or partial (e.g. 50% if rented out part-time).
Estimated Property CGT Tax Owed
$59,865
Calculated on net taxable capital gain added to taxable income.
Net Taxable Capital Gain (Added to Income)
$149,500
Includes 50% discount: $149,500
Net Capital Profit After Tax & Costs
$239,135
Property Capital Gains Tax Breakdown
1. The Australian Property CGT Framework (2026–27)
When selling an Australian residential investment property, any profit realized is classified as a Capital Gain under Part 3-1 of the Income Tax Assessment Act 1997.
Net assessable capital gains are added directly to your personal taxable income for the financial year in which contracts are exchanged, taxed at your marginal tax bracket rate.
2. Property Capital Gains Tax Benchmarks
| Gross Capital Gain | 50% Resident CGT Discount | Net Assessable Gain | Tax Payable (39% Bracket) | Tax Payable (47% Bracket) |
|---|---|---|---|---|
| $200,000 Capital Gain | $100,000 (50% Discount) | $100,000 Net Gain | $39,000 Tax Payable | $47,000 Tax Payable |
| $400,000 Capital Gain | $200,000 (50% Discount) | $200,000 Net Gain | $78,000 Tax Payable | $94,000 Tax Payable |
| $600,000 Capital Gain | $300,000 (50% Discount) | $300,000 Net Gain | $117,000 Tax Payable | $141,000 Tax Payable |
| $1,000,000 Capital Gain | $500,000 (50% Discount) | $500,000 Net Gain | $195,000 Tax Payable | $235,000 Tax Payable |
3. The Mathematics of 5-Element Cost Bases & Net Tax
Net Capital Gain (Gain_net) for contract sale price (P_sale), purchase cost base elements (E1..E5), Division 43 depreciation (Depr_div43), and marginal tax rate (r_marginal) is:
Example Property CGT Calculation:
An investor sells a Brisbane property for $850,000 (bought for $500,000 + $25,000 stamp duty/legal + $45,000 renovations + $20,000 agent fees = $590,000 cost base; $30,000 Division 43 depreciation claimed):
- Adjusted Cost Base: $590,000 - $30,000 depreciation = $560,000.
- Gross Capital Gain: $850,000 - $560,000 = $290,000.
- Net Assessable Gain (50% Discount): $290,000 × 50% = $145,000.
- Tax Payable (@ 39% marginal rate) = $145,000 × 39% = $56,550 CGT tax liability.
4. Step-by-Step Guide to Minimizing Property CGT
Determine Gross Property Contract Sale Price
Record contract sale price as agreed on the signed contract of sale.
Calculate 5-Element Property Cost Base
Sum purchase price, stamp duty, legal fees, building inspections, capital renovations, and agent selling fees.
Subtract Cumulative Division 43 Capital Works Depreciation
Deduct total capital works depreciation claimed on past ATO tax returns from your cost base.
Apply 50% CGT Discount (If Held > 12 Months)
Subtract 50% from gross capital gain for individual Australian residents holding property over 1 year.
Add Net Capital Gain to Salary Income & Calculate Tax
Add net assessable gain to your annual salary income and apply marginal tax rates plus Medicare levy.
5. Property CGT Mistakes & Checklist
Failing to Subtract Capital Works Depreciation from Cost Base
Omitting past Division 43 tax depreciation claims, understating taxable capital gains and triggering ATO penalties.
Assuming Settlement Date Determines the CGT Financial Year
Assuming CGT falls in the financial year of settlement rather than contract exchange date, lodging late tax returns.
Claiming Initial Repairs Made Right After Purchase as Routine Expenses
Claiming pre-lease renovation costs as immediate repairs rather than adding them to Element 4 of the cost base.
Forgetting Real Estate Agent & Marketing Expenses in Cost Base
Omitting $15,000–$25,000 in selling fees from Element 5 cost base, paying unnecessary extra capital gains tax.
Property CGT Compliance Checklist
Purchase Contract & Settlement Statement
Archive settlement statement showing original purchase price, stamp duty, and conveyancing fees.
Capital Renovation Expense Invoices
Keep invoices and receipts for structural alterations, extensions, or kitchen/bathroom renovations.
Quantity Surveyor Depreciation Schedule Audit
Provide Quantity Surveyor report to accountant to calculate cumulative Division 43 cost base adjustments.
Real Estate Agent Selling Agreement
Archive agent commission invoice (typically 1.5%–2.5%) and advertising invoices for cost base deduction.
6. Property Sale CGT Timeline
Cost Base Element 1 & 2 Establishment
Archive purchase contract, stamp duty receipt, and legal conveyancing invoice.
50% CGT Discount Entitlement Activation
Exceed 365-day ownership milestone to lock in 50% Australian resident CGT discount.
CGT Event Tax Trigger Point
Contract exchange date locks in the financial year CGT liability.
ATO Property Capital Gain Reporting
Report net capital gain on item 18 of your ATO individual income tax return.
Disclaimer: This Property CGT calculator and guide are provided for general educational and informational planning purposes only. Cost base rules, 50% discount parameters, and Division 43 depreciation write-back formulas reflect 2026–27 Australian Taxation Office guidelines. This page does not constitute formal tax, accounting, or legal advice.
Charlotte Smith
Senior Personal Finance & Taxation Specialist at AussieSpot
Charlotte Smith is the lead personal finance advisor and workplace specialist at AussieSpot. Charlotte has over 12 years of experience helping Australian households build budgets, plan savings goals, and manage living costs.
Frequently Asked Questions (FAQ)
How is Capital Gains Tax (CGT) calculated when selling an Australian investment property?
CGT is calculated by subtracting your total Cost Base (purchase price + stamp duty + legal fees + capital improvement costs + selling fees) from your gross sale contract price. If held for more than 12 months, Australian individual residents receive a 50% CGT discount on the gain.
What are the 5 elements of an ATO property Cost Base?
The 5 cost base elements are: (1) Money paid for property, (2) Incidental purchase costs (stamp duty, conveyancing), (3) Ownership holding costs (if un-deducted), (4) Capital improvement costs (renovations), and (5) Selling costs (agent commission, advertising).
How does tax depreciation claimed during ownership reduce your property Cost Base?
Any Division 43 capital works depreciation claimed as income tax deductions during ownership must be subtracted from Element 4 of your cost base when calculating your final CGT liability upon sale.
Can capital losses from other investments offset property capital gains?
Yes. Capital losses from selling shares or other investment assets can be offset dollar-for-dollar against gross property capital gains before applying the 50% CGT discount.
When is a property CGT liability triggered for tax purposes?
CGT is triggered on the contract exchange date (the date contracts are signed and exchanged), NOT on settlement day. This determines which financial year tax return includes the capital gain.