Capital Gains Tax in Australia

What is Capital Gains Tax (CGT)?

Capital gains tax is what you pay when you sell or otherwise dispose of a CGT asset and make a profit. It applies to CGT assets that were acquired after 20 September 1985.

When do I have to pay Capital Gains Tax?

You become liable to pay capital gains tax when you file your tax return, so that will be 30th of October in the financial year after you make the gain if you are a self lodger. If you lodge your tax return through a tax accountant then you will usually get a deferral until May of the following year.

How much Capital Gains Tax do I have to Pay?

The taxable capital gain that you make is added to your assessable income in the year that you dispose of the CGT asset. Effectively, the amount of capital gains tax you pay will be dependent on your marginal rate of income tax.

Do I pay Capital Gains Tax if I give something away?

You pay capital gains tax when the value of the CGT asset you dispose of exceeds the cost base of the asset. You can’t avoid capital gains tax by disposing of something for a nominal value, because it is base don the assets value not it’s sale price. It is not the value on the invoice that comprises the cost base, it is the value of the asset.

Do I have to pay Capital Gains Tax when I sell my family home?

Your main residence is exempt from capital gains tax, but there are a lot of rules surrounding this so you should refer to our main residence exemption page. You may partly lose your main residence exemption if you work from home.

Where do I get more Capital Gains Tax information?

Capital gains tax is a complex area of tax law and there are a lot of rules and regulations governing it. You can’t be too careful when it comes to navigating this legislation so you should always seek professional advice from a professional tax accountant when calculating your capital gains tax liability.