Making capital gains and capital losses

Selling investment assets (such as shares or managed fund investments) is a common way to make a capital gain or capital loss. Generally, a capital gain (or capital loss) is the difference between what it cost you to obtain and keep an investment asset and what you received when you disposed of it.

Capital gains tax (CGT) is the tax you pay on your net capital gain. It isn't a separate tax, just part of your income tax.

If you make a capital loss when you dispose of an asset, you can use it to reduce any capital gain you made in the same financial year. If you have not made a capital gain in the same financial year, you can use the loss to reduce a capital gain in a later year. You cannot deduct capital losses or a net capital loss from other income.

Next steps:

Read more about how to calculate the capital gain or loss on your investments:

Last modified: 09 Jun 2015QC 22820