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  • What is capital gains tax?

    Capital gains tax (CGT) is the tax you pay on profits from selling assets, such as property.

    You report capital gains and capital losses in your income tax return and pay tax on your capital gains. Although it is referred to as 'capital gains tax,' it is part of your income tax. It is not a separate tax.

    If you have a capital gain, it will increase the tax you need to pay. You may want to work out how much tax you will owe and set aside funds to cover it.

    Example: calculating CGT

    Maree buys some shares for $5,000.

    She owns the shares for 6 months and sells them for $5,500. She has no other capital gains or losses.

    Maree declares a capital gain of $500 in her tax return. She will pay tax on this gain at her individual income tax rate.

    End of example
    Last modified: 01 Jul 2022QC 69844