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: 5 May 2026

How is capital gains tax calculated on shares and ETFs?

Capital gain = sale proceeds − cost base. Cost base includes purchase price + buy brokerage; sale proceeds net off sell brokerage. Australian resident individuals get a 50% CGT discount on assets held for 12+ months. Complying super funds in accumulation phase get a 33.33% discount; companies get none. The discounted gain is added to taxable income and taxed at your marginal rate. Capital losses offset only capital gains (not salary) and carry forward indefinitely. Source: Australian Taxation Office.

Worked example. Bought 500 VAS units at $92 ($46,000 + $10 brokerage), sold 13 months later at $108 ($54,000 − $10 brokerage). Cost base $46,010; proceeds $53,990. Gross gain $7,980. Held 12+ months → 50% discount → $3,990 taxable gain. At 30% MTR + 2% Medicare → ~$1,277 tax payable. Same sale inside 12 months → no discount → taxable gain $7,980 → ~$2,554 tax. The 12-month rule alone is worth ~$1,280.

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

CGT Calculator — Shares & ETFs

How is capital gains tax calculated on shares and ETFs?

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