If you sell any non-inventory property or assets in Australia, you may have to pay capital gains tax on a capital gain, in addition to your income tax. This can apply when you sell assets such as cryptocurrencies, shares, digital products and property etc. You can use our tool to estimate your potential tax liability and understand how much tax you may need to pay. Knowing your potential liability in advance can help you plan for the tax payable when you dispose of an asset.

What Is Capital Gains Tax?

Capital gains tax applies when you make a capital gain from selling certain non-inventory assets. The gain can arise whether the asset is sold after being held for less than 12 months or after being held for more than 12 months. The tax treatment can depend on the type of asset, how long you held it and your circumstances.

A capital gain is generally the amount left after comparing the capital proceeds from an asset with its relevant cost base. If the result is positive, you generally have a capital gain. If the result is negative, you generally have a capital loss.

How to Calculate the Capital Gain Tax

To calculate a capital gain, start with the sale price of the asset and subtract the purchase price and eligible expenses connected with acquiring, holding, maintaining or selling the asset. The resulting amount helps determine whether you have made a capital gain or capital loss.

The applicable calculation can depend on factors such as the asset type, ownership period and whether you are eligible for a discount.

How to Work Out Capital Gains Tax

Before working out your potential tax liability, you should know the type of asset, its purchase price, sale price and eligible expenses connected with the purchase or sale. You should also know the relevant income year and how long you held the asset.

The ownership period can be important because an eligible asset held for more than 12 months may qualify for a CGT discount if the relevant requirements are satisfied.

You should also consider any capital losses. If you have a capital loss from another asset, you may be able to subtract it from a capital gain, subject to the applicable rules. This can reduce the amount of the gain that is ultimately taken into account.

You can enter these details into the calculator to estimate the capital gains tax that may be payable.

How to Use Capital Gains Tax Calculator Tool

In the tool, first select the type of asset. Then enter the purchase price and sale price. Next, enter the eligible expenses connected with the purchase or sale of the asset.

If you have a capital loss from a previous year, enter that amount as well. You should also enter your income and select the relevant income year.

After this, enter how long you have held the asset. For example, you can enter whether you held the asset for one year, two years or three years. Once the required information has been entered, the calculator can provide an estimate based on the information supplied.

How to ATO Find Capital Gains Tax on Property

The Australian Taxation Office deals with capital gains tax and other Australian tax matters. When determining the CGT treatment of an asset, relevant factors can include the type of asset, when it was purchased, when it was sold and how long it was held.

Capital losses can also affect the calculation because eligible losses may be applied against capital gains. Your other income can also affect the amount of tax payable because a capital gain may form part of your taxable income.

The CGT calculation can involve different methods. One method considers the cost base and relevant acquisition information. Another is the discount method, which can provide a 50% discount for eligible individuals and trusts where an eligible asset has been held for more than 12 months. Companies generally do not receive this discount.

Complying superannuation funds can receive a one-third discount on eligible capital gains where the relevant requirements are met.

A further method is the simple method, which does not provide the long-term discount for assets sold before the required holding period.

CGT treatment can also apply to real estate and the sale of house property. Where a property is used as a residence, an exemption may be available if the relevant requirements are met.

Which Assets Are Subject to CGT and Which Are Exempt?

Capital gains tax can apply to non-inventory assets such as stocks, property, shares, cryptocurrencies, bonds, precious metals, real estate, antiques, second homes, digital assets and other property when a capital gain is made on disposal.

Assets acquired before 20 September 1985 are generally treated as pre-CGT assets and are generally outside the CGT system.

If an asset was acquired after 20 September 1985, CGT rules may apply when a CGT event occurs.

Certain assets used as a residence may also receive CGT treatment that differs from other assets. If you live in a property as your residence, an exemption may be available where the relevant requirements are met.

Cars and motorcycles used for personal purposes can also have different CGT treatment.

Family Living Arrangements

Eligible family living arrangements are generally exempt from CGT when they are created, changed, or ended, as long as the required conditions are met. This exemption helps prevent unnecessary tax consequences for certain living arrangements between family members.

Capital Gains Tax Relief for Small Business Owners

Australian business owners may qualify for several CGT concessions that can reduce or defer the tax payable when selling eligible business assets. There are four main options, each with its own eligibility requirements.

15-Year Ownership Relief

This is one of the most valuable options available to eligible business owners. To qualify:

• The asset must have been continuously owned for at least 15 years.
• You must meet the basic eligibility requirements and the active asset test.
• You must be aged 55 or over and retiring, or permanently incapacitated.

If all conditions are satisfied, the eligible capital gain may be completely disregarded, so no CGT is payable on that gain.

50% Asset Gain Reduction

This option can reduce an eligible capital gain by 50%.

• The asset must meet the active asset test and other basic eligibility requirements.
• If you qualify, you may reduce the relevant capital gain by 50%.

This reduction may also be available alongside the general 50% CGT discount, which can potentially reduce the original gain by up to 75%.

Future CGT Rule Changes

Business owners should also be aware of proposed changes to the CGT system:

• The current 50% CGT discount is proposed to be replaced with an inflation-based cost-base adjustment.
• A 30% minimum tax rate is proposed for relevant real capital gains.
• The proposed changes are intended to apply to gains accruing from 1 July 2027.

Reviewing the timing of a potential asset sale before these changes take effect may help you understand the possible tax impact.

Retirement-Based CGT Relief

This option has a lifetime limit of $500,000 in capital gains and includes different requirements based on your age:

• If you are under 55 when you choose this option, the relevant amount generally needs to be paid into a complying superannuation fund or retirement savings account (RSA).
• If you are 55 or older when you make the choice, this payment requirement generally does not apply.

Gain Deferral Through Replacement Assets

This option allows you to postpone all or part of a capital gain for at least two years, which can provide more time to reinvest in another business asset.

• If you purchase a replacement asset or make eligible improvements to an existing asset, the gain may remain deferred for longer, subject to the relevant requirements.
• If the replacement asset or improvement requirements are not satisfied, a CGT event may occur and the deferred gain could become assessable.

How to Reduce Capital Gains Tax

Capital Gains Tax does not apply to every asset or situation. Depending on the type of asset, how long you have owned it, and how it has been used, there may be ways to reduce the amount of tax you owe. Understanding available concessions, discounts and eligible expenses can help you understand your potential CGT liability.

Ways to Lower Your CGT

1. Use Capital Losses

If you made a capital loss in an earlier year, you may be able to use it to offset capital gains in the current or a future year. This reduces your overall net capital gain and can lower the amount of CGT you need to pay.

Capital losses can be a useful way to reduce your taxable capital gain, provided they are applied according to the relevant tax rules.

2. Consider the 12-Month CGT Discount

The length of time you own an asset can affect the amount of CGT you pay. If you sell an eligible asset within 12 months of acquiring it, you generally cannot claim the CGT discount.

However, if you hold the asset for more than 12 months, you may qualify for the CGT discount if you meet the relevant requirements.

For individuals and trusts, a 50% CGT discount may be available on eligible assets. This can substantially reduce the taxable portion of a capital gain.

3. Include Eligible Costs in the Cost Base

Certain costs associated with buying, owning and selling an asset may be included in its cost base when calculating the capital gain.

These may include eligible acquisition costs, certain ownership or improvement expenses, and costs directly related to selling the asset. Increasing the cost base with eligible expenses can reduce the resulting capital gain and therefore the CGT payable.

Keeping accurate records and claiming eligible costs correctly is an important part of calculating your CGT liability.

How to Work Out a Capital Gain or Loss

To calculate a capital gain or loss, start by identifying the amount you received from selling the asset and its cost base. Include eligible costs associated with acquiring, improving, owning or selling the asset when working out the cost base.

Then, subtract the adjusted cost base from the capital proceeds.

• If the capital proceeds are greater than the adjusted cost base, you generally make a capital gain.
• If the adjusted cost base is greater than the capital proceeds, you generally make a capital loss.

Latest Updates to Australia's CGT Rules

Australia's Capital Gains Tax (CGT) rules are expected to undergo changes from 1 July 2027. Under the proposed reforms, the current 50% CGT discount would be replaced with an inflation-based adjustment for relevant capital gains. A minimum tax rate of 30% on relevant capital gains is also proposed.

The proposed rules would apply to capital gains accruing from 1 July 2027, subject to the final legislation and any transitional arrangements. Eligible small businesses may continue to access existing CGT concessions where they satisfy the required conditions.

These proposed reforms could change how individuals and businesses work out their CGT liability when disposing of assets. Keeping up with the latest rules can help taxpayers understand how the changes may affect their taxable capital gains.

Future Changes to Capital Gains Tax in Australia

Australia's Capital Gains Tax (CGT) system may continue to evolve as the government reviews and updates tax legislation. The rules have changed several times over the years, including major changes affecting assets acquired after 20 September 1985 and further reforms introduced from 21 September 1999.

More recently, reforms announced in 2026 are proposed to take effect from 1 July 2027, subject to the final legislation and applicable transitional arrangements.

Further changes may also be introduced in the future depending on government policy, economic conditions, taxpayer circumstances, and broader considerations around the fairness of the tax system.

Because CGT rules can change, taxpayers should check the current Australian tax rules when estimating the tax payable on gains from assets such as property, shares, and other investments.

Understanding CGT Events in Australia

A CGT event occurs when a particular transaction, disposal, or change in circumstances takes place that may create a capital gain or capital loss. These events determine when the Australian Capital Gains Tax (CGT) rules may apply.

Examples include selling or transferring an asset, an asset being lost or destroyed, certain changes to shares, ceasing Australian residency, receiving particular company payments, and using a main residence for income-producing activities.

When you dispose of an asset, such as by selling or transferring it, you may make a capital gain or loss based on the difference between the relevant proceeds or market value and the asset's cost base.

Special CGT rules can apply when an asset is destroyed or lost, particularly where insurance proceeds or a replacement asset are involved.

Certain transactions involving shares or other investments can also create a CGT event. For example, the cancellation, redemption, or surrender of shares may result in a gain or loss depending on the circumstances.

Changing your Australian residency status can also have CGT implications. When you cease to be an Australian resident, specific rules may apply to certain assets you continue to own.

Some payments received from a company can trigger CGT consequences depending on the type of payment and the circumstances surrounding it. Similarly, using part of your home to produce income or run a business may affect the CGT treatment when the property is eventually sold.

Knowing which CGT event applies to a transaction can help you identify when a capital gain or loss arises and assess whether CGT is payable.

Benefits of Estimating CGT Before Selling an Asset

Working out your Capital Gains Tax (CGT) before disposing of an asset can give you a clearer picture of your potential tax obligation. Knowing the likely amount in advance can help you prepare financially and avoid unexpected costs.

An early estimate may also help you compare different selling dates and understand how factors such as the ownership period, available discounts and eligible costs could affect the final amount.

It can also support better decisions about your investments. By reviewing the possible tax consequences before selling, you can compare whether selling, holding or reinvesting in another asset may be more suitable for your circumstances.

Overall, estimating CGT before an asset sale gives you useful information for planning your finances and understanding the potential tax impact of the transaction.

CGT Example for One Asset

Example: Emily sells an investment property during the financial year. Her transaction details are:

• Purchase price: $420,000
• Sale price: $520,000
• Total cost base: $450,000
• Capital gain: $520,000 − $450,000 = $70,000
• Ownership period: More than 12 months
• 50% CGT discount: $70,000 × 50% = $35,000
• Net capital gain: $35,000

Because Emily held the property for more than 12 months, she may be eligible for the 50% CGT discount, assuming all relevant conditions are satisfied. Her resulting net capital gain is $35,000, which is generally included in her taxable income and taxed at her applicable marginal tax rate.

CGT Example for Several Assets

Example: Olivia sells an investment property and shares during the same financial year. The transactions result in:

• Property capital gain: $85,000
• Shares purchase cost: $18,000
• Shares sale proceeds: $11,000
• Capital loss on shares: $11,000 − $18,000 = $7,000 loss

The $7,000 capital loss from the shares can be used to offset Olivia's $85,000 capital gain from the property:

If Olivia is eligible for the 50% CGT discount on the property gain because she held it for more than 12 months, the remaining gain is reduced as follows:

Therefore, Olivia's net capital gain is $39,000, which is generally included in her taxable income and taxed at her applicable marginal tax rate.

This example shows how a capital loss from one asset can be used to offset a capital gain from another asset, subject to the applicable Australian CGT rules.

History of Capital Gains Tax in Australia

Australia's Capital Gains Tax (CGT) system began on 20 September 1985. This is commonly referred to as the pre-CGT date. Assets acquired before this date are generally treated as pre-CGT assets and are usually outside the CGT system, while assets acquired from this date onward generally fall under CGT rules.

The original system used different approaches depending on how long an asset was held. For eligible assets held for at least 12 months, an indexation method could increase the asset's cost base to reflect inflation. Assets disposed of within 12 months were generally calculated without this long-term indexation benefit.

A major change occurred on 20 September 1999, when the 50% CGT discount was introduced for eligible individuals and trusts holding an asset for more than 12 months. This replaced the indexation approach for assets acquired after the relevant date.

Companies generally cannot access this discount, while complying superannuation funds may receive a one-third discount on eligible capital gains.

Further reforms have been introduced over time, including several small business CGT concessions. Depending on the circumstances, these provisions can help eligible business owners reduce or postpone certain capital gains.

More recently, proposed reforms announced in May 2026 include an inflation-based treatment for relevant capital gains and a proposed 30% minimum tax rate on relevant real capital gains. These measures are intended to apply from 1 July 2027, subject to the final legislation and any transitional provisions.

Knowing how Australia's CGT system has developed over time can help taxpayers better understand the rules that may apply when calculating gains on property, shares, business assets, and other investments.

Why Estimate CGT Before Selling an Asset?

Working out your Capital Gains Tax (CGT) before selling an asset can give you an estimate of the tax you may need to pay. This allows you to prepare for the potential liability instead of finding out the amount after the transaction has taken place.

An early estimate can also help you compare different selling dates and understand how factors such as the ownership period, available CGT discounts, and eligible costs may affect your final taxable gain.

It can be useful for making informed decisions about your assets as well. By considering the potential tax outcome before selling, you can assess whether to sell, continue holding an asset, or reinvest the proceeds elsewhere.

Overall, estimating CGT before disposing of an asset can make financial planning easier and give you a clearer idea of your expected tax position.

Example of Capital Gains Tax on Shares

Imagine you earn an annual salary of $85,000 and you sell shares that you have held for more than 12 months. You originally purchased the shares for $24,000 and later sold them for $36,000.

Your capital gain would be:

Because you have owned the shares for more than 12 months, you may be eligible for the 50% CGT discount if you are an Australian individual and meet the relevant requirements.

After applying the discount:

This means $6,000 would generally be included in your taxable income as the discounted capital gain.

Your final tax payable will depend on your taxable income, deductions, applicable tax rates, Medicare levy and other personal circumstances.

Example Summary

• Annual salary: $85,000
• Original share purchase price: $24,000
• Share sale price: $36,000
• Capital gain: $12,000
• Ownership period: More than 12 months
• 50% CGT discount: $6,000
• Discounted capital gain: $6,000