How CGT works in Australia
There is no separate capital gains tax. Your net capital gain is added to your taxable income and taxed at your marginal rate plus Medicare levy. If you held the asset for at least 12 months, only half of the gain is included.
Capital losses must be applied before the discount and can be carried forward indefinitely. Your main residence is usually exempt.
FAQ
How is CGT calculated in Australia?
Subtract losses, apply the 50% discount if held 12+ months, and add the result to your taxable income.
Is there a CGT-free threshold?
No separate one, but the gain shares your $18,200 tax-free threshold if your other income is low.
Will the CGT discount change?
The 2026 Budget proposed replacing it with indexation from 1 July 2027; it is not law yet.