What is CGT?
Capital Gains Tax (CGT) applies when you sell an asset for more than you paid for it. The gain is added to your taxable income.
Capital Gains Tax (CGT) isn't a separate tax — it's part of your income tax. When you sell an asset (like property, shares, or crypto) for more than you paid, the profit (capital gain) is added to your taxable income for that year.
If you've held the asset for more than 12 months, you get a 50% discount — meaning only half the gain is taxable. Your main home is generally exempt from CGT.
Key facts
- •Capital gain = sale price minus cost base (purchase price + costs)
- •50% CGT discount for assets held longer than 12 months (individuals and trusts)
- •Your main residence is generally exempt from CGT
- •Capital losses can be offset against capital gains (but not against other income)
- •Net capital gain is added to your taxable income and taxed at your marginal rate
Try the calculator
CGT CalculatorFrequently asked questions
Do I pay CGT on my home?
Usually no. Your main residence is exempt from CGT. However, if you rented it out, used it for business, or have land over 2 hectares, a partial exemption or no exemption may apply.
How is CGT calculated on shares?
Sale price minus cost base (purchase price plus brokerage). If you held for over 12 months, halve the gain. The result is added to your other income and taxed at your marginal rate.
General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.