Capital Gains Tax Calculator

Australian resident individuals who hold a capital gains tax asset for at least 12 months before selling are eligible for a 50% CGT discount. This means only half of the capital gain is added to your taxable income. For example, if you make a $100,000 capital gain on shares held for over 12 months, only $50,000 is included in your assessable income. The discount does not apply to companies or assets held for less than 12 months.

The cost base of a CGT asset includes the original purchase price plus any incidental costs of buying and selling such as stamp duty, legal fees, agent commissions, and brokerage. It can also include non-capital costs of ownership like interest on loans to acquire the asset (in some cases) and capital improvements. Keeping accurate records of all costs is essential to calculate your correct capital gain or loss.

The holding period starts from the date you acquired the asset (the contract date, not settlement) and ends on the date of the CGT event (usually the contract date of sale). You must hold the asset for at least 12 months to be eligible for the 50% CGT discount. For shares, the acquisition date is typically the trade date. For property, it is the date of the purchase contract.

Capital gains and losses are reported in your annual income tax return. You must report all CGT events that occurred during the financial year. Net capital gains (after applying any capital losses and the CGT discount) are added to your other assessable income and taxed at your marginal tax rate. Capital losses can be carried forward to offset future capital gains but cannot be used to reduce other income.