Sell Before or After 30 June? CGT Timing Guide for Australian Investors
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Primary tax-year context: Current Australian tax settings
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General information only. This is not tax or financial advice. Consult a registered tax agent for advice specific to your situation.
One of the most common questions investors face at the end of the financial year: should I sell now, or wait until July?
The answer depends on your taxable income in each year, your marginal tax rate, and whether delaying the sale affects your eligibility for the 50% CGT discount.
Why timing matters
In Australia, capital gains are added to your assessable income in the year you sell. The tax you pay on that gain depends on your marginal tax rate — which is determined by your total taxable income.
If your income is significantly different between two financial years, selling in the lower-income year can mean paying less tax on the same gain.
The key factors
1. Your income in each year
Consider your expected taxable income (before the capital gain) in:
- The current financial year (ending 30 June)
- The next financial year (starting 1 July)
If one year has significantly lower income, that’s usually the better year to realise the gain.
Common scenarios where income differs:
- Taking parental leave or long service leave
- Starting or ending employment
- Reduced hours or a career break
- Salary increase or bonus timing
- Retirement or semi-retirement
- Large one-off income (redundancy, inheritance)
2. Tax bracket thresholds
Australia’s income tax system uses progressive brackets. The 2025-26 thresholds are:
| Taxable income | Marginal rate |
|---|---|
| $0 - $18,200 | 0% |
| $18,201 - $45,000 | 16% |
| $45,001 - $135,000 | 30% |
| $135,001 - $190,000 | 37% |
| $190,001+ | 45% |
If realising a gain pushes you into a higher bracket in one year but not the other, the timing difference can be substantial.
3. The 12-month CGT discount
Before deciding, check whether delaying the sale affects your eligibility for the 50% CGT discount. If you’ve held the asset for less than 12 months, waiting might be worth it purely for the discount — regardless of income timing.
Use the 12-month discount scenario to compare.
A worked example
Situation: You have shares with a $40,000 capital gain. You’ve held them for over 12 months (so the 50% discount applies, giving a $20,000 taxable gain).
| Year | Other income | Gain added | Total | Marginal rate on gain |
|---|---|---|---|---|
| 2024-25 | $90,000 | $20,000 | $110,000 | 30% |
| 2025-26 | $50,000 | $20,000 | $70,000 | 30% |
In this case, both years result in the same marginal rate, so timing doesn’t matter much for tax purposes.
Different situation:
| Year | Other income | Gain added | Total | Marginal rate on gain |
|---|---|---|---|---|
| 2024-25 | $130,000 | $20,000 | $150,000 | 37% |
| 2025-26 | $40,000 | $20,000 | $60,000 | 30% |
Here, selling in 2025-26 saves 7 percentage points on the gain — roughly $1,400 in tax savings.
When to sell this year
Selling before 30 June may be better if:
- Your income is lower this year than expected next year
- You have capital losses to offset this year that might expire or be harder to use later
- You need the cash now
- You’re concerned about asset price volatility
When to wait until next year
Delaying until after 1 July may be better if:
- Your income will be lower next year (retirement, leave, career change)
- Waiting will qualify you for the 50% CGT discount
- You want to defer the tax payment by 12 months
- You’re unsure and want more time to plan
The cost of deferral
Even if the tax rate is the same, delaying a sale defers the tax payment by up to 12 months. This has a cash flow benefit — you keep the money working for you longer.
However, this must be weighed against:
- Market risk (the asset price could fall)
- Opportunity cost (you might want to reinvest elsewhere)
- Changes to your circumstances
Capital losses and timing
If you have capital losses from previous years, they must be applied before the CGT discount. The year you realise a gain can affect how efficiently you use these losses.
Key rule: Capital losses can only offset capital gains, not other income. Unused losses carry forward indefinitely.
Read more about using capital losses to offset gains.
Practical steps
- Estimate your income for both years as accurately as possible
- Calculate the gain using our CGT calculator
- Compare the scenarios using our sell this year vs next year tool
- Consider non-tax factors like cash needs and market conditions
- Consult a tax professional for significant gains or complex situations
Key takeaways
- The financial year you sell in determines when you pay tax and at what rate
- Lower income years generally mean lower tax on the same gain
- Don’t forget to check the 12-month CGT discount eligibility
- Deferral has cash flow benefits but also carries market risk
- Use the scenario comparison tools to model your specific situation