How is capital gains tax calculated on shares in Australia?

Capital gains tax on shares is calculated by subtracting your cost base (purchase price + brokerage + other costs) from the sale proceeds (sale price - brokerage). If held for 12+ months, you get a 50% discount. The net capital gain is added to your taxable income and taxed at your marginal rate. For example, a $10,000 gain on shares held 13 months at the 30% tax bracket would result in $1,500 tax (50% discount reduces the gain to $5,000, taxed at 30%).

What is the 50% CGT discount?

Australian resident individuals who hold an asset for at least 12 months before selling are entitled to a 50% discount on the capital gain. This means only half of the capital gain is added to your taxable income. The discount applies after capital losses have been offset. Companies do not receive this discount, and super funds receive a 33.3% discount instead.

Can I offset capital losses against other income?

No. Capital losses can only be offset against capital gains — not against salary, wages, or other income. If your capital losses exceed your capital gains in a financial year, the unused losses are carried forward to future years indefinitely. You must report capital losses in your tax return even though they don't reduce your tax that year.

CGT Calculator — Shares & ETFs

Enter your share purchase and sale details to calculate capital gains tax. See the impact of the 50% CGT discount, brokerage costs, and capital losses on your tax bill.

Last verified: 1 July 2025

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General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.

CGT Calculator — Shares & ETFs

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