How does the 50% CGT discount work for Australian property and shares?

If you are an individual Australian tax resident and hold an investment asset (like property or shares) for at least 12 months before selling, you only pay tax on 50% of the net capital gain. The discounted gain is added to your assessable income and taxed at your marginal rate.

Is my family home exempt from Capital Gains Tax in Australia?

Yes, your principal place of residence (main residence) is generally 100% exempt from CGT, provided you live in the home, do not use it to produce business income, and the land area is under two hectares.

What expenses can be added to the CGT cost base to reduce tax?

You can reduce your taxable capital gain by adding purchase costs (stamp duty, conveyancing, buyer agent fees), capital improvement costs (renovations, extensions), and selling expenses (agent commissions, legal fees, marketing) to your cost base.

How is Capital Gains Tax (CGT) calculated on property in Australia?

Capital Gains Tax is calculated by subtracting the cost base (original purchase price plus acquisition, holding, and disposal costs) from the final selling price. If you hold the investment property for more than 12 months as an individual, you are generally eligible for a 50% CGT discount on the net capital gain.

Do shares and cryptocurrency have different CGT rules in Australia?

No, shares and cryptocurrency are treated similarly to property by the ATO. Selling them triggers a capital gains tax event. The net capital gain is added to your taxable income and taxed at your marginal rate. The 50% CGT discount also applies to shares and crypto held for more than 12 months.

How do capital losses affect my taxable capital gains?

Capital losses can only be used to offset current or future capital gains; they cannot be offset against your personal salary or business income. If you have capital losses from previous years, they are deducted from your capital gains before applying the 50% CGT discount.

How is Capital Gains Tax (CGT) calculated on property in Australia?

Capital Gains Tax is calculated by subtracting the cost base (original purchase price plus acquisition, holding, and disposal costs) from the final selling price. If you hold the investment property for more than 12 months as an individual, you are generally eligible for a 50% CGT discount on the net capital gain.

Do shares and cryptocurrency have different CGT rules in Australia?

No, shares and cryptocurrency are treated similarly to property by the ATO. Selling them triggers a capital gains tax event. The net capital gain is added to your taxable income and taxed at your marginal rate. The 50% CGT discount also applies to shares and crypto held for more than 12 months.

How do capital losses affect my taxable capital gains?

Capital losses can only be used to offset current or future capital gains; they cannot be offset against your personal salary or business income. If you have capital losses from previous years, they are deducted from your capital gains before applying the 50% CGT discount.

2026-27 Budget Update

Australian CGT Calculator 2026-27

Estimate your Capital Gains Tax liability in Australia. Compare tax outcomes under current law versus the proposed 2027 Indexation and 30% Minimum Tax rules for property and shares.

edit_documentAsset Details

query_stats

Enter your asset details to see
the Budget 2027 comparison.

The Original Intent

The 2027 reform replaces the arbitrary 50% discount with Indexation, ensuring you only pay tax on gains that exceed inflation.

30% Minimum Floor

To prevent high-wealth earners from using indexation to avoid tax entirely, a minimum 30% tax is applied to the total gross gain.

New Build Exemption

Properties classified as "New Builds" can choose whichever method results in less tax, encouraging continued housing supply.

Detailed Methodology & Guide

What is Capital Gains Tax (CGT)?

In Australia, Capital Gains Tax is the tax you pay on the profit (gain) you make when you sell an asset like real estate or shares. CGT is not a separate tax; it’s part of your annual income tax. This tool helps you estimate that payment for the 2026-27 tax year and beyond.

How is CGT Calculated?

For assets held longer than 12 months, individuals currently receive a 50% discount. However, from July 2027, rules shift toward inflation indexation. Our calculator compares both methods to show you the best financial outcome for your property investment portfolio.

CGT Exemptions in Australia

Your main residence (your home) is generally exempt from CGT. Other exemptions include personal assets like cars and furniture. This calculator focuses on investment assets like rental properties and stock market portfolios where CGT liability is most common.

The 2027 Budget Reform

The proposed 2027 reform replaces the 50% discount with Indexation. This means you only pay tax on the 'real' gain—the amount the asset value increased above the inflation rate. A 30% minimum floor prevents high-income earners from avoiding tax entirely using this method.

Disclaimer: These calculations are based on budget estimates and proposed legislation. Consult a registered tax agent or visit the ATO website before making investment decisions.

auto_stories

Guide & Knowledge Hub