capital gains tax calculator australia

How this capital gains tax calculator works

This tool provides a practical estimate of Australian capital gains tax for investment assets such as shares, ETFs, investment property, and some crypto transactions. It uses the standard CGT framework:

• Calculate your gross capital gain or loss.
• Apply carried-forward capital losses first.
• Apply the CGT discount if eligible (based on entity type and holding period).
• Estimate tax by applying your marginal tax rate to the discounted gain.

Australian CGT basics (quick guide)

1) Cost base

Your cost base generally includes what you paid to acquire the asset plus incidental costs and eligible capital improvements. In this calculator, cost base includes:

• Purchase price
• Buying costs (such as legal fees, stamp duty, brokerage)
• Capital improvements

2) Capital proceeds

Capital proceeds are what you receive when you sell the asset. We reduce this by selling costs (for example, agent fees, legal costs, selling brokerage) to estimate your net proceeds.

3) Capital losses

Carried-forward capital losses can offset current-year capital gains. They cannot usually be used against ordinary income like salary. The calculator applies losses to gains before any discount.

4) CGT discount

If the asset has been held long enough, a discount may apply:

• Individuals and trusts: typically 50% discount
• Complying super funds: typically 33.33% discount
• Companies: no general CGT discount

Example calculation

Suppose you bought an asset for $500,000, paid $20,000 in buying costs, spent $10,000 on capital improvements, then sold for $700,000 with $15,000 selling costs. You also have $8,000 in prior capital losses.

• Cost base = 500,000 + 20,000 + 10,000 = $530,000
• Net sale proceeds = 700,000 - 15,000 = $685,000
• Gross gain = 685,000 - 530,000 = $155,000
• After losses = 155,000 - 8,000 = $147,000
• If eligible for 50% discount, taxable gain = $73,500

Your final tax depends on your total taxable income and marginal tax rate.

Important notes for Australian investors

Property

Main residence exemptions can significantly change tax outcomes. This calculator is most suitable for investment assets and does not model all principal place of residence rules.

Shares and ETFs

Brokerage on buy and sell is typically relevant to CGT calculations. Keep transaction records, contract notes, and corporate action history.

Crypto assets

In Australia, crypto can trigger CGT events when sold, swapped, gifted, or used for purchases. Accurate record-keeping is essential.

Small business CGT concessions

Small business concessions can materially reduce or eliminate CGT for eligible taxpayers. These rules are not included in this simple calculator.

How to reduce CGT legally

• Hold eligible assets long enough to access the CGT discount.
• Use capital losses strategically.
• Maintain clear records of all costs that can form part of cost base.
• Consider timing of disposals across financial years.
• Get licensed tax advice before major transactions.

Disclaimer

This calculator is for educational use and general estimates only. It does not include every ATO rule, exemption, or concession. Tax outcomes vary by circumstances. For personal advice, consult a registered Australian tax agent or accountant.