Capital Gains Tax (CGT) Calculator

What is capital gains tax?

Capital gains tax (CGT) is the tax you pay on the profit made from selling an investment asset. In Australia, CGT is not a separate tax — it forms part of your income tax. The capital gain is added to your regular income and taxed at your marginal rate.

A capital gain occurs when you sell an asset for more than its cost base (purchase price plus associated costs like stamp duty, legal fees, and improvements). A capital loss occurs when you sell for less, and can only offset capital gains — not ordinary income.

The 50% CGT discount

If you hold an investment asset for more than 12 months before selling, you may be eligible for a 50% CGT discount. This means only half of your capital gain is included in your assessable income.

For example, if you make a $20,000 capital gain on shares held for 2 years:

• Discounted gain: $20,000 × 50% = $10,000
• This $10,000 is added to your taxable income
• Tax payable depends on your marginal rate

The discount is available to individuals and trusts, but not companies. Assets must be held for more than 12 months — the date of acquisition and disposal both matter.

CGT on different asset types

Different assets have different CGT rules:

• **Shares**: CGT applies when you sell shares. The cost base includes purchase price plus brokerage. If you sell multiple parcels, you can choose which identification method to use (FIFO, LIFO, or specific parcel).
• **Property**: CGT applies to investment properties (not your main residence, which is generally exempt). The cost base includes purchase price, stamp duty, legal fees, and certain capital improvements (but not repairs).
• **Cryptocurrency**: Crypto is treated as a CGT asset. Converting crypto to AUD, trading one crypto for another, or using crypto to purchase goods all trigger CGT events.
• **Collectables**: Items like artwork, jewellery, and antiques over $500 are subject to CGT.

How to calculate CGT

The CGT calculation follows these steps:

1. Determine the capital gain: Sale price minus cost base (purchase price + incidental costs + capital improvements) 2. Apply the 50% discount if held > 12 months 3. Add the discounted gain to your assessable income 4. Apply any available capital losses (from current or prior years) 5. Calculate tax at your marginal rate

For example: • Bought shares for $10,000 (including brokerage) • Sold 18 months later for $25,000 (minus $500 brokerage) • Capital gain: $25,000 – $500 – $10,000 = $14,500 • After 50% discount: $14,500 × 50% = $7,250 • Tax at 30% marginal rate: $7,250 × 30% = $2,175

Frequently Asked Questions

What is the 50% CGT discount?

If you hold an asset for more than 12 months, only 50% of the capital gain is included in your assessable income. This effectively halves the tax you pay on the gain.

Is my main residence subject to CGT?

Generally no. Your main residence is exempt from CGT under the main residence exemption. However, if you rent it out or use it for business, partial CGT may apply.

Can I offset capital losses against income?

No. Capital losses can only be offset against capital gains, not ordinary income. Unused losses carry forward to future years indefinitely.

How is crypto taxed in Australia?

Cryptocurrency is subject to CGT. Selling, trading, or using crypto to buy goods triggers a CGT event. The 50% discount applies if held > 12 months.

Do I pay CGT on inherited property?

No CGT is payable at the time of inheritance. However, when you later sell the inherited property, CGT applies (unless it was the deceased's main residence and sold within 2 years).