Australian CGT Calculator

Capital Gains Tax (CGT) is the tax you pay on the profit (capital gain) made when you sell an asset for more than you paid for it. In Australia, CGT isn't a separate tax— it's part of your income tax. Any capital gains you make are added to your assessable income and taxed at your marginal tax rate.

When you sell shares, ETFs, managed funds, property, or other CGT assets, you need to calculate:

• Cost base: The original purchase price plus any incidental costs (brokerage, stamp duty, legal fees)
• Capital proceeds: The sale price minus any selling costs
• Capital gain: The difference between proceeds and cost base

CGT Events

A CGT event occurs when you dispose of an asset. Common CGT events for investors include:

• Selling shares on the ASX
• Selling units in ETFs or managed funds
• Selling investment property
• Gifting assets (treated as a disposal at market value)
• Receiving in-specie transfers

One of the most powerful tax concessions for Australian investors is the 50% CGT discount. If you're an individual and you hold a CGT asset for more than 12 months before selling, you only pay tax on half of your capital gain.

Eligibility Requirements

• Holding period: You must own the asset for at least 12 months and one day before selling
• Individuals and trusts: The discount applies to Australian resident individuals and trusts
• Not for companies: Companies cannot access the 50% CGT discount
• Positive gain required: The discount only applies to capital gains, not capital losses

How the Discount is Calculated

The 50% discount is applied after offsetting any capital losses. The calculation order is:

1. Calculate gross capital gain from the sale
2. Offset any available capital losses
3. Apply the 50% discount to the remaining gain
4. The discounted amount is added to your taxable income

Example: You sell shares for a $10,000 gross gain after holding for 2 years. With the 50% discount, only $5,000 is added to your taxable income. At a 30% marginal tax rate, you pay $1,500 in tax instead of $3,000.

A capital loss occurs when you sell an asset for less than its cost base. While you can't claim a tax deduction for capital losses, they can be valuable for reducing your capital gains tax liability.

Using Capital Losses

• Offset gains: Capital losses must first be used to reduce capital gains in the same financial year
• No 50% discount: Losses are applied before the CGT discount, maximising their benefit
• Carry forward: Unused capital losses can be carried forward indefinitely to offset future gains
• No refund: Capital losses cannot be used to reduce other income (except in limited circumstances)

Tax-Loss Harvesting

Some investors strategically sell losing investments before 30 June to "harvest" capital losses. These losses can offset gains from other sales, reducing the overall tax bill. However, be aware of the "wash sale" rules—if you buy back substantially the same asset within a short period, the ATO may disallow the loss.

The ATO requires you to keep records of all CGT assets for at least 5 years after the CGT event. For shares and investments, you should retain:

• Contract notes or confirmation statements for purchases and sales
• Dividend reinvestment plan (DRP) statements
• Records of any corporate actions (share splits, mergers, demergers)
• Evidence of any incidental costs (brokerage fees)
• Records of how you calculated the cost base and capital gain