How the numbers are worked out
| Step | What happens |
|---|---|
| Capital gain | Sale price − cost base |
| CGT discount | 50% off the gain, if held 12+ months and you're an Australian resident |
| Assessable gain | Capital gain − discount — this is what gets added to your income |
| Extra tax | Tax on (other income + assessable gain) − tax on other income alone |
Source: Australian Taxation Office, capital gains tax discount for individuals and trusts. There is no separate CGT rate — the gain simply stacks on top of your other income at your marginal tax rate.
Questions people actually ask
Is capital gains tax a separate tax?+
No. There's no separate CGT rate — your capital gain (after any discount) is added to your other taxable income for the year and taxed at your normal marginal rate. This calculator shows the extra tax that addition causes.
Do I get the 50% CGT discount?+
Individuals and trusts get a 50% discount on a capital gain if the asset was held for at least 12 months, and the owner is an Australian resident for tax purposes. Foreign and temporary residents generally don't get the discount on gains made after 8 May 2012.
What happens if I made a capital loss instead?+
A capital loss isn't tax-deductible against your income. It can only be offset against capital gains — this year's or a future year's — so it gets carried forward until you have a gain to use it against.