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.
Read more about how to calculate the capital gain or loss on your investments:
You will generally make a capital gain (or capital loss) when you dispose of your investments. You need to include any capital gains in your tax return, although you can offset them against capital losses.