Capital gains tax (CGT) is not a separate tax in Australia — it is part of your income tax. When you sell an asset for more than you paid for it, the profit (the capital gain) is included in your assessable income for that year and taxed at your marginal rate. The critical difference is the 50% discount: if you held the asset for more than 12 months, only half the gain is taxable.
Understanding CGT is essential for anyone who invests in shares, property, or crypto. This cluster covers the rules from the ground up — how to calculate a gain, which assets are affected, the main exemptions, and the record-keeping you need to support every claim.
How CGT Works
- Capital Gains Tax Australia — Complete Guide — What triggers a CGT event, how capital gains are included in your tax return, and the role of capital losses
- How to Calculate Capital Gains Tax — Step-by-step: establish the cost base, determine the proceeds, apply the 50% discount, offset any capital losses
- Cost Base Explained — What counts as the cost base (purchase price, stamp duty, legal fees, improvement costs) and what does not
- The 50% CGT Discount for Individuals — Who qualifies (individuals and trusts, not companies), the 12-month holding requirement, and how it interacts with capital losses
- CGT Record-Keeping Requirements — What records you must keep, for how long (generally 5 years after you dispose of the asset), and what counts as evidence
CGT on Specific Asset Types
- CGT on Shares in Australia — When you trigger CGT by selling ASX shares, ETFs, or international stocks, and how franking credits interact
- CGT on Investment Property — The main residence exemption, the partial exemption when a home was also rented, and the six-year absence rule
- CGT on Cryptocurrency — ATO Rules — Why the ATO treats crypto as a CGT asset (not currency), what counts as a disposal, and how to value transactions in AUD
- CGT on Foreign Shares and US Stocks — Buying and selling via international brokers, currency conversion at each transaction date, and foreign income tax offsets
- CGT on ETF Distributions and Sales — The difference between income distributions (taxable as income) and selling units (CGT event)
Exemptions and Concessions
- CGT Exemptions and Concessions — The main residence exemption, cars, personal use assets under $10,000, and compensation payments
- Main Residence CGT Exemption — Full exemption for your principal place of residence, the conditions that must be met, and when you lose the exemption
- The Six-Year CGT Absence Rule — How you can rent out your former home for up to six years and still claim the full main residence exemption
- Partial Main Residence Exemption — How to calculate the taxable portion when a property was both your home and an investment
- CGT When You Convert Your Home to a Rental — The deemed disposal rules, valuation at the time of conversion, and the six-year election
- Small Business CGT Concessions — The 15-year exemption, 50% active asset reduction, retirement exemption, and rollover for eligible small businesses
Advanced Topics
- CGT and Deceased Estates — The CGT rules for inherited assets: cost base reset, the two-year period, and main residence exemption for deceased estates
- CGT and Relationship Breakdown — Rollover relief when transferring assets between spouses on separation or divorce under a court order
- Tax-Loss Harvesting in Australia — Deliberately realising capital losses to offset gains, the wash-sale risk, and year-end timing considerations
This section provides general tax information. CGT rules are complex and depend on your individual circumstances. For advice tailored to your situation, speak with a registered tax agent. Find one through the Tax Practitioners Board register.