Australian residents who hold an asset for at least 12 months can apply the 50% CGT discount, meaning only half of the capital gain is added to their taxable income.
Reviewed against Australian tax rules for the 2025–26 financial year. CGT rules remain unchanged.
Planning a sale after 1 July 2027? Use the CGT discount reform calculator to compare selling before the reform against holding under the new cost-base indexation + 30% minimum tax rules.
Capital Gains Tax is not a separate tax in Australia. Instead, when you sell an asset for more than you paid, the profit (capital gain) is added to your assessable income for that financial year. The gain is then taxed at your marginal tax rate.
If you searched for "capital gains tax calculator Australia", "CGT on shares", or "CGT on investment property", this page is built to answer those exact use cases. It lets you estimate the gross gain, apply the discount where available, and see the extra tax created by the sale.
The 50% CGT Discount
Australian residents who hold an asset for at least 12 months qualify for the 50% CGT discount. This halves the capital gain before it's added to your taxable income — a significant tax saving.
Example: You buy shares for $10,000 and sell for $30,000 after 14 months.
→Gross capital gain: $20,000
→After 50% discount: $10,000
→This $10,000 is added to your taxable income
→If your marginal rate is 30%, you pay $3,000 in CGT
→Without the discount, you'd pay $6,000
This calculator compares your tax position before and after the capital gain, showing exactly how much additional tax you'll pay as a result of the asset sale.
Capital gains tax on property
When calculating CGT on an investment property, the cost base includes more than just the purchase price. You can include stamp duty, legal fees, building and pest inspections, and the cost of capital improvements made during ownership (such as a new kitchen or structural renovation). Agent commissions and legal fees on sale also form part of the cost base, reducing your capital gain.
Property example: Buy for $500,000, sell for $700,000 after 3 years.
→Gross capital gain: $700,000 − $557,925 = $142,075
→After 50% discount: $71,038
If the property was your principal place of residence (PPOR) for part of the ownership period, only the non-PPOR portion is taxable. Use the PPOR toggle in the calculator above to model partial exemptions.
How income tax rates affect your CGT
Because capital gains are added to your assessable income, the tax rate you pay depends on your marginal tax bracket. Higher-income earners pay more CGT on the same gain.
Taxable income
Tax rate
Effective CGT rate (after 50% discount)
$0 – $18,200
0%
0%
$18,201 – $45,000
16%
8%
$45,001 – $135,000
30%
15%
$135,001 – $190,000
37%
18.5%
$190,001+
45%
22.5%
The effective CGT rate column shows what you pay on a discounted (12+ month) capital gain at each bracket. For example, a gain taxed at the 30% bracket effectively costs 15% after the 50% discount. Note that a large gain can push you into a higher bracket, so the actual rate may be a blend.
Not sure when to sell?Browse CGT scenarios to explore different timing strategies.
Common scenarios
Common CGT scenarios
CGT applies to a wide range of asset sales. The most common scenarios Australian taxpayers encounter include:
→Shares and ETFs — Selling listed shares or exchange-traded funds triggers a CGT event. Brokerage on both the buy and sell sides is included in the cost base.
→Investment property — The cost base includes stamp duty, legal fees, and capital improvements. Depreciation previously claimed may need to be added back.
→Cryptocurrency — Disposing of crypto (including trading one coin for another) is a CGT event. Use our crypto tax calculator for exchange-specific imports.
→If your marginal rate is 30%, additional tax = $2,244
→If your marginal rate is 37%, additional tax = $2,768
→Without the 50% discount, the tax at 30% would be $4,488 — nearly double
Capital losses & EOFY harvesting
Capital losses, carry-forward, and EOFY harvest timing
Capital losses cannot offset salary, business income, or other ordinary income (s 102-10 ITAA 1997) — they only offset capital gains. The mechanics matter for EOFY planning: a loss realised before 30 June 2026 can reduce a same-year gain dollar-for-dollar, but a loss realised on 1 July 2026 instead defers the offset to the 2026-27 year. The timing of the disposal is determined by the contract date for property and by the trade date for shares, not the settlement date.
Application order (s 102-15)
→Step 1: Reduce gross capital gains by any current-year capital losses (dollar-for-dollar, before the 50% discount).
→Step 2: Reduce remaining gross capital gains by prior-year carried-forward capital losses.
→Step 3: Apply the 50% CGT discount only to the residual discounted gains.
→Step 4: Net capital gain is added to taxable income at your marginal rate.
The order matters: applying losses BEFORE the 50% discount means a $10,000 loss fully cancels $10,000 of gross gain (avoiding tax on $5,000 of post-discount gain). Applying the loss AFTER the discount would only cancel $5,000 of post-discount gain — half the effective benefit. The ATO's order is fixed; the calculator applies it automatically.
EOFY harvest: If you hold an unrealised loss position alongside a realised gain, selling the loss-maker before 30 June crystallises the loss for current-year offset. The ATO disregards "wash sale" arrangements where you sell and buy back the same asset within a short window (TR 2008/1) — but switching to a similar but materially different asset (e.g., one ASX-listed bank to a different ASX-listed bank) is generally acceptable. Net capital losses (where losses exceed gains) carry forward indefinitely until applied — but only against future capital gains, never against ordinary income, even after decades.
The ATO treats crypto as a CGT asset, not as foreign currency (TD 2014/25). A disposal triggers a CGT event under s 104-10, and "disposal" includes far more than selling to AUD:
→Selling crypto for AUD — Standard CGT event A1. Capital proceeds = AUD received minus exchange fees.
→Trading one crypto for another — Each trade is two CGT events (disposal of asset A, acquisition of asset B at market value). Stablecoins are not exempt — USDC and AUDC are CGT assets.
→Paying for goods or services with crypto — CGT event on disposal. Capital proceeds = AUD market value of the goods/services received.
→Receiving an airdrop — Ordinary income at AUD market value on receipt date. Cost base for any later disposal is the same market value.
→Staking rewards — Ordinary income at AUD market value on receipt date — even before you withdraw or sell. Cost base for the staked units is set at receipt.
→Lending or DeFi yield — Same as staking — ordinary income on receipt at market value, separate from any later CGT event on disposal.
The 50% CGT discount applies to crypto disposals where you held the specific parcel for 12+ months — but parcel identification matters. FIFO is the default ATO assumption; you can elect specific-identification per parcel if you maintain wallet-level records showing acquisition dates. The personal use asset exemption (s 108-20) is narrow for crypto — it requires the crypto to be acquired and used to buy personal goods/services within a short timeframe, and the cost base must be under $10,000. Buying-and-holding crypto never qualifies as personal use.
For exchange-specific CSV imports, FIFO vs specific-parcel reconciliation, and DeFi-aware staking-vs-disposal split, use the crypto tax calculator.
Small business CGT concessions
Small business CGT concessions — four reliefs worth knowing
If you're selling an active business asset (goodwill, business premises, plant), four CGT concessions in Division 152 ITAA 1997 can stack on top of the 50% discount and eliminate or defer most or all of the remaining gain. The eligibility gate: aggregated annual turnover under $2 million OR net asset value under $6 million (including connected entities and affiliates).
→15-year exemption (Subdiv 152-B) — Full CGT exemption if you've held the asset 15+ years, the disposal is in connection with retirement, and you're 55+ (or permanently incapacitated). The gain doesn't even need to be applied against other concessions.
→50% active asset reduction (Subdiv 152-C) — Additional 50% reduction on top of the standard 50% CGT discount — effectively cutting the discounted gain to 25% of the original. Applies to active business assets without the 15-year requirement.
→Retirement exemption (Subdiv 152-D) — Up to $500,000 lifetime exemption per individual. If you're under 55, the exempt amount must be contributed to super (counted toward the non-concessional cap or under the small-business CGT cap exemption).
→Rollover relief (Subdiv 152-E) — Defer the gain by reinvesting in a replacement active asset within 2 years (extendable to 12 months after replacement). Useful for restructures and intergenerational transfers.
The concessions stack in a specific order: gross gain → 50% CGT discount → 50% active asset reduction → retirement exemption / rollover. A typical sale of a 15-year-held active asset by an individual aged 55+ can result in zero CGT under the 15-year exemption alone, bypassing the other steps. For a younger owner with $400,000 of post-discount gain, retirement exemption + 50% active asset reduction can defer or eliminate the entire amount.
Eligibility is technical — the "active asset test", "connected entity" definitions, and the 80% trading test for shares all have edge cases. This calculator does not model small business concessions. The small business CGT concessions calculator walks through the four reliefs in order with eligibility checks.
Coverage
What this calculator includes
→Capital gain calculation (sale price minus purchase price and costs)
→50% CGT discount for assets held 12 months or longer
→Trust or company CGT rules — different rates apply
→Capital loss carry-forward from previous years
→Foreign resident CGT rules and withholding tax
→Inflation indexation method (pre-1999 assets)
→Small business CGT concessions
This is a simplified estimate. Your actual CGT outcome may differ based on your individual circumstances and any other capital gains or losses in the same financial year.
FAQ
What is Capital Gains Tax (CGT)?
CGT is a tax on the profit you make when selling an asset. In Australia, CGT is not a separate tax - the capital gain is added to your assessable income and taxed at your marginal rate. See ATO capital gains tax.
What is the 50% CGT discount?
Australian residents who hold an asset for at least 12 months before selling can reduce their capital gain by 50%. This means only half of the gain is added to your taxable income.
How do I calculate my capital gain?
Capital gain = Sale price - Purchase price - Incidental costs - Capital improvements. Incidental costs include brokerage, stamp duty, and legal fees.
What happens if I make a capital loss?
Capital losses can only be used to offset capital gains, not other income. You can carry forward unused capital losses to future years. This calculator does not model loss carry-forward.
Do I pay CGT on my main residence (PPOR)?
Generally no. If the property was your main residence for the entire time you owned it, the full capital gain is exempt from CGT. This is called the main residence exemption or PPOR exemption. See ATO capital gains tax.
What if I lived in the property for only part of the time?
You may be entitled to a partial exemption. The exempt portion is calculated based on the time the property was your main residence compared to the total time you owned it.
What is the 6-year absence rule?
If you move out of your main residence and rent it out, you can treat it as your main residence for CGT purposes for up to 6 years, even while renting it out. This is called the 6-year absence rule. You can only claim this for one property at a time.
Are these calculations updated for 2025–26?
Yes. This calculator has been reviewed against Australian tax rules for the 2025–26 financial year. There are no structural changes to CGT rules in 2025–26. The 50% discount, main residence exemption, and 6-year absence rule all remain unchanged.
How much capital gains tax will I pay in Australia?
It depends on three factors: the size of your capital gain, how long you held the asset, and your other taxable income. If you held the asset for 12+ months, only half the gain is taxed (the 50% discount). The discounted gain is then added to your income and taxed at your marginal rate — from 0% up to 45%. Use the calculator above to see your exact additional tax.
Can I use capital losses against my salary or business income?
No. Under s 102-10 ITAA 1997, capital losses can only offset capital gains — never ordinary income such as salary, wages, business income, rental income, or investment income. Unused capital losses carry forward indefinitely until you have future capital gains to apply them against. This is why "loss harvesting" only makes sense when you also have realised or imminent gains in the same year or future years.
How does CGT apply to inherited assets?
Inheritance itself doesn't trigger CGT (no acquisition event for the beneficiary on inheritance). The CGT outcome on later disposal depends on when the deceased acquired the asset. Pre-20 September 1985: the asset is pre-CGT, and the beneficiary's cost base resets to the market value at the date of death. Post-1985: the beneficiary inherits the deceased's original cost base and acquisition date. Main residence inherited: a special 2-year window applies under s 118-195 — sell within 2 years of death and the gain is generally CGT-free, regardless of how the property was used after death. Extensions to this window are possible in limited circumstances.
What is the wash sale rule in Australia?
The ATO's wash sale guidance (TR 2008/1) targets arrangements where you sell an asset to crystallise a loss and then re-acquire it (or a substantially identical asset) within a short window solely for tax purposes. The ATO can disallow the loss under Part IVA (anti-avoidance). The rule isn't about a fixed time period — it's about the dominant purpose. Selling Bank Stock A and buying Bank Stock B (different issuer, similar exposure) is generally acceptable. Selling Bank Stock A and re-buying Bank Stock A two days later for no reason other than locking in the loss is at risk.
How will the CGT discount reform from 1 July 2027 affect my planning?
The Budget 2026-27 announced reforms replace the flat 50% CGT discount with a cost-base indexation method plus a 30% minimum tax for high-income earners from 1 July 2027. The change applies to individuals and trusts (not super funds, which retain the 33.3% concession). For assets you already hold, the existing 50% discount continues for disposals before 1 July 2027 — a window that has prompted significant pre-reform sale planning. The CGT discount reform calculator compares your tax outcome under the current rules vs the post-reform rules so you can decide whether to sell before or after 30 June 2027.
Learn more
Learn more about Capital Gains Tax
Understand the rules before you make decisions. Read our plain-English explanations.
Uses standard CGT rules including the 50% discount and simplified PPOR scenarios. It is not a substitute for asset-specific legal advice or full return-level CGT reconciliation.