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Capital Gains Tax (CGT)

Captial Gains Tax (CGT) is the tax you pay on a capital gain.  It is not a separate tax, just part of your income tax.  The most common way you make a capital gain (or capital loss) is by selling assets such as real estate, shares or managed fund investments.


A capital gain - or captial loss - is the difference between what it cost you to get an asset and what you received when you disposed of it.

All assets acquired since tax on capital gains came into effect (20 September 1985) are subject to CGT unless specifically excluded.

The most common ways to make a captial gain or loss is by selling assets such as real estate or shares.  CGT can also apply to intangible assets such as business goodwill.

Some main personal assets which are exempt from CGT include, your home, car and most persoanl use assets such as furniture.  CGT does not apply to depreciating assets used solely for taxable purposes, such as business equipment or fittings in a rental property.

If you are an Australian resident, CGT applies to your assets anywhere in the world.

For further information, see Capital Gains Tax