Tax & Income
Capital Gains Tax (CGT)
Tax on the profit made when you sell an asset, with a 50% discount for individuals who held it over 12 months.
What it is
Capital gains tax isn't a separate tax, it's part of income tax. When you sell or otherwise dispose of an asset for more than its cost base, the capital gain is added to your assessable income for that year. Individuals who held the asset over 12 months get a 50% discount on the taxable portion of the gain.
Who it applies to
Australian resident individuals who dispose of an asset such as shares, an investment property, or cryptocurrency. Non-residents are not eligible for the 50% discount. Your main residence is generally exempt.
Key figures
- CGT discount (held over 12 months)
- 50% for individuals
- Discount eligibility
- Asset held longer than 12 months
- Capital loss
- Not discounted; offsets gains, can be carried forward
Important limitations
Does not cover the main residence exemption, collectables, business CGT concessions, partial disposals, or pre-CGT assets acquired before 20 September 1985.
Official sources
- Australian Taxation Office (ATO) - Capital gains tax
Educational information only, not financial advice.
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