How CGT is calculated in Australia
Capital Gains Tax is not a separate tax — it's part of your income tax. Your capital gain is added to your other income and taxed at your marginal rate.
- 1.Calculate the capital gain: sale price − cost base
- 2.Apply 50% discount if held more than 12 months
- 3.Add the discounted gain to your taxable income
- 4.Tax is payable at your marginal rate
The 50% CGT discount
Australian residents who hold an asset for more than 12 months are entitled to a 50% CGT discount. This means only half the capital gain is added to your taxable income — effectively halving your CGT.
Non-residents are generally not eligible for the 50% discount (except on certain pre-2012 assets). Superannuation funds receive a one-third discount instead of 50%. Companies do not receive any CGT discount.
CGT by marginal rate (2024–25)
| Taxable Income | Marginal Rate | Effective CGT rate (with 50% disc.) |
|---|---|---|
| $0 – $18,200 | 0% | 0% |
| $18,201 – $45,000 | 19% | 9.5% |
| $45,001 – $135,000 | 32.5% | 16.25% |
| $135,001 – $190,000 | 37% | 18.5% |
| $190,001+ | 45% | 22.5% |
Effective CGT rates assume the full 50% discount is applied. Medicare levy (2%) is additional. Rates are for the 2024–25 financial year.
Frequently Asked Questions
What is the capital gains tax rate in Australia? +
Do I pay CGT on my main residence? +
Can I offset capital losses against capital gains? +
When do I have to pay CGT? +
Is the cost base just the purchase price? +
Disclaimer: This calculator provides estimates for general information purposes only based on 2024–25 ATO rates and does not constitute financial or tax advice. Results do not account for capital losses, cost base adjustments, the Medicare Levy Surcharge, foreign residents' rules, trust distributions, or other individual circumstances. Always consult a registered tax agent or accountant before making investment decisions.