§ 11 — Tax
How much CGT will you actually pay?
Capital Gains Tax in Australia is added to your taxable income — but hold for more than 12 months and you halve the gain before tax. Enter your numbers to see the real after-tax outcome.
Your inputs
Asset type
Holding period & income
Marginal rate: 32.0%
For individuals. Companies and SMSFs use different rates.
The result
Enter your purchase and sale details to see your CGT estimate, including the 50% discount if held over 12 months.
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Why the 12-month rule matters so much
The 50% CGT discount for assets held over 12 months is one of the most powerful concessions in the Australian tax system. On a $300,000 gain, the difference between selling at month 11 and month 13 is potentially $30,000–$50,000 in tax.
At a 47% marginal rate (income over $190,000), a $300,000 gain held under 12 months costs $141,000 in CGT. The same gain held over 12 months costs just $70,500 — the discount halves the taxable amount before the rate is applied.
The contract date — not settlement — is when the ATO considers the asset sold. If you sign in December but settle in February, the gain falls in the December financial year. Planning around this date can determine whether the 50% discount applies.
Frequently Asked Questions
What is Capital Gains Tax in Australia?+ open
CGT is not a separate tax in Australia — it is included in your income tax. When you sell a capital asset (property, shares, etc.) for more than you paid, the profit is added to your taxable income for that year, and you pay tax at your marginal rate. The ATO considers the gain realised in the year you sign the contract of sale.
How does the 50% CGT discount work?+ open
Individuals who hold a capital asset for more than 12 months can discount the gain by 50% before adding it to income. On a $200,000 gross gain, only $100,000 is added to your taxable income. At a 32% marginal rate, you pay $32,000 rather than $64,000. The discount does not apply to companies, or to assets held 12 months or less.
What costs can I add to the cost base?+ open
The cost base includes: purchase price, stamp duty and conveyancing fees, capital improvements (renovations — not repairs), and selling costs (agent commissions, advertising, legal fees). Ongoing ownership costs like interest and rates are not included for owner-occupied homes.
Is CGT payable on the family home?+ open
No — your primary residence is generally exempt under the main residence exemption. The exemption applies in full if you lived there the entire time and did not rent it out. Partial exemptions apply for periods of rental use. Investment properties and holiday homes do not qualify.