Work out roughly what you might owe before you sell, so there’s no surprise come tax time.
Capital gains tax isn’t its own separate tax, that trips a lot of people up. It’s part of your income tax. Sell an asset for more than you paid, and the profit gets added to your assessable income and taxed at your marginal rate.Â
The sum is simple: sale price minus cost base (what you paid, plus certain buying and selling costs) equals your capital gain. It applies to property that isn’t your main home, shares, managed funds, crypto, and a fair few other assets. Sell for less than your cost base and that’s a capital loss instead.
How Our Capital Gains Tax Calculator Works:
Run your numbers through our calculator at LoanCalculator.com.au for a rough estimate, not a figure ready for your tax return. It works off a handful of details:
Feed those in and you get a ballpark, useful for planning ahead rather than lodging on the day.
Hold an asset over 12 months before selling, and individuals and trusts can generally apply a 50% CGT discount, according to the ATO. Only half the gain gets taxed. A purely illustrative example:
That $5,000 gets added to income and taxed at the marginal rate, not the full $10,000.
| Salary | Ownership period | Capital gain | Discount applied | Taxable gain |
|---|---|---|---|---|
| $100,000 | 12+ months | $10,000 | 50% | $5,000 |
Your main residence is usually exempt from CGT, provided it’s genuinely been your home. Small business owners may also access separate concessions, depending on how the business is structured.Â
| Asset Type | Typical CGT Treatment | Common Exemptions/Discounts |
|---|---|---|
| Property (investment) | Gain added to assessable income | Main residence exemption (if applicable) |
| Shares | Gain added to assessable income | 12-month discount for individuals/trusts |
| Crypto and other assets | Gain added to assessable income | 12-month discount where eligible |
Two people can sell the same asset for the same profit and still pay very different amounts of tax. These are the main factors:
Before listing anything, pull together what you paid, what you’ve spent since, and roughly what you expect to sell for. Running the numbers early beats scrambling after the sale’s gone through. If the numbers look substantial, a chat with a registered tax agent is time well spent.
There’s no single CGT rate. It depends on three things: the size of your gain after costs, how long you held the asset, and your other income for the year. Your net gain is added to your taxable income and taxed at your marginal rate. Selling within 12 months means the whole gain is counted, so selling an investment property after 10 months could add the full profit to your income that year. The calculator above gives you an estimate based on your own figures.
Generally, yes, if you sell them for more than you paid. Brokerage on buying and selling is added to your cost base, which reduces the gain. If you’ve held the shares for more than 12 months, the 50% discount may apply. Dividends are taxed separately as income in the year you receive them.
Your cost base is more than the purchase price. It can also include stamp duty, legal and conveyancing fees, agent’s fees when you sell, and the cost of capital improvements such as a renovation. A higher cost base means a smaller capital gain, and so less tax. Keep receipts for everything, because you’ll need them to back up your figures.
Usually not, if it has been your main residence for the whole time you’ve owned it. If you’ve rented it out or used part of it to earn income, a partial exemption may apply.
No. Individuals and trusts can generally get the 50% discount after holding an asset for 12 months, but companies can’t. The government has also announced changes to the discount from 1 July 2027, so check the latest ATO guidance.
Yes, but only against capital gains, not your salary. Unused losses carry forward to future years.
Not quite. Capital gains tax isn’t a separate tax with its own rate. Your net capital gain for the year is added to your other income in your tax return and taxed at your marginal rate. That means a large gain can push part of your income into a higher tax bracket, so the timing of a sale can make a difference.
It’s a good starting point for planning, but it depends on the figures you enter. The calculator can’t account for everything, such as other capital gains or losses, partial exemptions, or changes to your income during the year. Before you lodge your return, check your final figure with your accountant or against the ATO’s guidance.
Buying a property or planning your next move? Compare home loan options, estimate your repayments and see what could fit your budget.
