Hold 1 Year vs 2 Years: Compare Your CGT
Once you've held an asset for 12 months, you qualify for the 50% CGT discount. But should you sell then, or hold longer? This calculator helps you model different holding period scenarios.
Longer holding periods may mean larger gains—but also higher tax (even with the discount). Compare the after-tax outcomes to make an informed decision.
Scenario A: Hold for 1 year
Scenario B: Hold for 2 years
Applies to both scenarios
12 months after Scenario A
Scenario A
Hold for 1 year2025-26 Capital Gains Tax rates
Tax Comparison
Scenario B
Hold for 2 years2025-26 Capital Gains Tax rates
Tax Comparison
This calculator provides estimates only and does not constitute financial advice. Actual amounts may vary based on individual circumstances. Consult a registered tax agent for personalised guidance.
How to use this comparison
- Review the pre-filled scenarios — we've set up realistic defaults for comparison
- Adjust the numbers — enter your actual purchase price, sale price, and dates
- Compare the results — see the tax difference highlighted at the top
- Share or bookmark — the URL updates as you change inputs
How Capital Gains Tax Works
When you sell an asset for more than you paid, the profit is a capital gain. In Australia, this gain is added to your taxable income and taxed at your marginal rate. The amount of tax you pay depends on your total income that year, how long you held the asset, and whether any exemptions apply.
Key factors affecting your CGT
- Holding period: Assets held for 12+ months qualify for the 50% CGT discount, halving your taxable gain
- Your income: Higher income means a higher marginal tax rate on your capital gains
- Asset type: Your main residence is generally CGT-free; investment properties and shares are not
- Cost base: Includes purchase price plus costs like stamp duty, legal fees, and improvements
Use the calculator above to model your specific situation. Adjust the inputs to see how different scenarios affect your tax outcome.
FAQ
Is there any benefit to holding longer than 12 months for CGT?
From a pure CGT perspective, no—the 50% discount is the same whether you hold for 13 months or 13 years. However, your overall gain may be higher with a longer hold, meaning more tax in absolute terms.
How do I compare different sale prices?
Use this calculator to model different scenarios. Enter your expected sale price after 1 year vs 2 years, and see which produces a better after-tax outcome.
Does my income in the sale year matter?
Yes, significantly. If you expect lower income in a future year (e.g., retirement), holding until then could reduce your marginal tax rate on the gain.
What about opportunity cost?
Money tied up in an asset could be invested elsewhere. Consider the after-tax return of selling now and reinvesting vs holding for potential growth. This calculator focuses on the CGT comparison.
Disclaimer
This tool provides estimates only and does not constitute financial advice. Investment decisions should not be based solely on tax considerations. Market conditions, investment goals, and personal circumstances all play a role.
Before making decisions about selling assets, consult a registered tax agent or licensed financial adviser.