Capital Gains Tax Calculator

How capital gains tax works in Australia

Capital gains tax in Australia is not a separate tax - it is part of your income tax. When you sell an asset for more than its cost base, the gain is added to your assessable income for that financial year and taxed at your marginal rate. The 50% CGT discount for individuals (holding period over 12 months) effectively halves the taxable gain, making it one of the most significant tax concessions available.

The cost base includes the purchase price plus incidental costs such as stamp duty, legal fees, improvement costs, and selling costs (agent commissions, advertising). Keeping accurate records of all these costs is essential to minimise your CGT liability. Capital losses can only be offset against capital gains - not against salary or business income - but unused losses carry forward indefinitely.

How to use this CGT calculator

1. Enter the asset purchase price and date of acquisition.
2. Add incidental acquisition costs (stamp duty, legal fees, broker fees) and any improvement costs incurred during ownership.
3. Enter the sale price and incidental selling costs (agent commissions, advertising, legal fees).
4. Select your entity type (individual, company, SMSF, or trust) and enter your other taxable income for the financial year.
5. Review the calculated capital gain, applicable discount, and estimated CGT payable at your marginal rate.

CGT concessions available to Australian taxpayers

Beyond the 50% general discount for individuals and trusts, Australian tax law provides several additional CGT concessions. Small business owners with aggregated turnover under $2 million (or net assets under $6 million) may qualify for the small business 50% active asset reduction, the retirement exemption (up to $500,000 lifetime), the 15-year exemption, and the small business rollover. These concessions can be applied sequentially, potentially eliminating CGT entirely on the sale of an active business asset. For investment property, the main residence exemption applies to your primary home, and a partial exemption is available if the property was your main residence for part of the ownership period. The ATO closely scrutinises CGT reporting, and the data-matching program cross-references property sales, share trades, and crypto transactions.

How does AP automation help with CGT record-keeping?

Accurate CGT calculations depend on having complete records of all acquisition and improvement costs - sometimes spanning decades of ownership. When invoices from conveyancers, agents, tradespeople, and consultants are processed manually, costs can be missed or miscoded. Automating accounts payable ensures every cost is captured and allocated to the correct asset from the start, building a reliable cost base that is ready when the asset is eventually sold.