Free Calculator • CGT Discount

Capital Gains Tax Calculator Australia

Calculate CGT on property, shares, and asset sales

Determine your capital gains tax liability on investment properties, shares, and other assets. Includes CGT discount for assets held over 12 months.

How to Use This Calculator

Enter Asset Details

  • Purchase price and date
  • Sale price and date
  • Transaction costs and improvements

Review CGT Calculation

  • See capital gain/loss amount
  • Check eligibility for 50% CGT discount
  • View net CGT payable

Property Sale Details

Excludes repairs and maintenance - only major improvements

From previous capital losses you can offset

Plus 2% Medicare levy will apply

Understanding Capital Gains Tax

Capital Gains Tax (CGT) is the tax you pay on the profit when you sell an asset like an investment property, shares, or business. It's not a separate tax — the capital gain is added to your taxable income and taxed at your marginal rate.

Key concept: You pay tax on the gain (profit), not the total sale price. The gain is calculated as the sale price minus the cost base (what you paid plus costs).

The 50% CGT Discount Rule

Hold for 12+ months and save 50%! If you own an asset for at least 12 months before selling, you can reduce your capital gain by 50% before calculating tax.

Example:

  • • Capital gain: $100,000
  • • Held for 2 years (qualifies for discount)
  • • Discount: $50,000 (50% of gain)
  • • Taxable gain: $50,000
  • • Tax at 37% rate: $18,500 (instead of $37,000)
  • • Savings: $18,500!

Important: The discount only applies to assets held for investment. Your main residence is already exempt, so the discount doesn't apply there.

Main Residence Exemption

Your main residence (home) is completely exempt from CGT if you lived in it for the entire ownership period. This is one of the most valuable tax concessions in Australia.

Partial Exemption (Investment Property Conversion)

If you lived in a property as your main residence for part of the time and rented it out for the rest, you get a partial exemption based on the proportion of time it was your home.

Example: Partial Exemption

  • • Owned property for 10 years (120 months)
  • • Lived in it for 5 years (60 months)
  • • Rented it out for 5 years (60 months)
  • • Capital gain: $200,000
  • • Exemption: $100,000 (50% as main residence)
  • • Taxable (with 50% discount): $50,000

The 6-Year Rule

You can treat a property as your main residence for up to 6 years while renting it out, as long as you don't claim another property as your main residence during that time. This is useful if you move for work but plan to return.

What's Included in Your Cost Base?

Your cost base is everything you paid for the asset and to improve it. A higher cost base means a lower capital gain and less tax.

✓ Include in Cost Base

  • • Purchase price
  • • Stamp duty
  • • Legal fees (purchase & sale)
  • • Agent fees (sale)
  • • Capital improvements (renovations, extensions)
  • • Building reports and inspections
  • • Advertising for sale

✗ Don't Include

  • • Repairs and maintenance
  • • Interest on loans
  • • Council rates
  • • Property management fees
  • • Insurance
  • • Repainting (maintenance)

💡 Maximizing Your Cost Base

Track every capital improvement receipt! Renovations, extensions, structural improvements all increase your cost base and reduce CGT. Use ReceiptClaimer to organize receipts for all property expenses so you don't miss deductions when you sell.

Capital Improvements vs Repairs

Understanding the difference between repairs and capital improvements is crucial for maximizing your cost base:

Capital Improvements (Add to Cost Base)

  • • Adding a new room or extension
  • • New kitchen (complete replacement)
  • • New bathroom (complete replacement)
  • • Installing air conditioning
  • • Adding a deck or patio
  • • Structural renovations
  • • Converting garage to living space

Repairs (Tax Deductible, Not Cost Base)

  • • Fixing broken items
  • • Repainting existing surfaces
  • • Replacing broken appliances
  • • Fixing leaking taps
  • • Replacing damaged carpet (same quality)
  • • Repairing broken fences

Rule of thumb: If it's making something better or adding something new, it's a capital improvement. If it's fixing something that's broken or worn out, it's a repair.

When Should I Calculate CGT?

Use this calculator at three key stages:

1.

Before Deciding to Sell

Estimate your CGT liability to understand the true after-tax profit. If you're close to 12 months ownership, consider waiting to qualify for the 50% discount.

2.

When Receiving Offers

Calculate CGT on different sale prices to understand your actual take-home amount after tax. This helps you make informed decisions on accepting offers.

3.

Tax Planning

Plan the timing of your sale to minimize tax impact. Consider splitting sales across financial years or offsetting gains with available capital losses.

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Important Disclaimer

This calculator provides estimates only and is not financial advice. Capital gains tax calculations can be complex, especially with main residence exemptions and multiple properties. Always consult a qualified tax professional or accountant for your specific circumstances. Results are based on current ATO rules and rates.

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