CGT Advice

Capital Gains Tax (CGT) Advice

Expert advice on capital gains tax based on ATO CGT guidelines.

What is CGT?

Capital gains tax is the tax you pay on profits from disposing of assets such as property, shares, and other investments. It is not a separate tax ??? the capital gain is included in your assessable income and taxed at your marginal rate.

Key CGT Concepts

• CGT Events: Triggered when you sell, gift, or dispose of an asset, or when an asset is lost or destroyed
• CGT Assets: Property, shares, units in trusts, cryptocurrency, intangible assets, and foreign currency
• Cost Base: What you paid for the asset plus associated costs (stamp duty, legal fees, improvements)
• Capital Gain: Sale proceeds minus cost base

50% CGT Discount

Individuals and trusts may be eligible for a 50% discount on capital gains if the asset was held for 12 months or more. This effectively halves the tax on the gain.

CGT Exemptions

• Main Residence: Generally exempt from CGT (subject to conditions)
• Personal Use Assets: Assets acquired for $10,000 or less
• Cars and Motorcycles: Exempt regardless of value
• Pre-CGST Assets: Assets acquired before 20 September 1985
• Small Business Assets: May qualify for additional concessions

Reducing Your CGT

• Apply capital losses against capital gains
• Use the 50% discount for assets held 12+ months
• Maximise your cost base (include all eligible costs)
• Time the sale to a year with lower income
• Consider small business CGT concessions if eligible
• Use the main residence exemption where applicable

Source: ATO ??? Capital Gains Tax