For educational purposes only. Not tax, legal, or financial advice. Tax laws change frequently. Consult a registered tax agent or CPA for your specific situation.

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    TaxKiln Australia

    Australian Capital Gains Tax calculator

    Discount method, main residence exemption, the 6-year absence rule and the four Small Business CGT Concessions in Division 152 — all calculated in your browser. Nothing is stored, sent, or logged.

    The disposal

    >12 months unlocks the discount method for individuals and super funds.

    Applied before the CGT discount (ITAA 1997 s.102-5).

    Subdiv 118-B exemption.

    Net taxable capital gain

    Gross gain
    $400,000.00
    Discount (50.00%)
    − $200,000.00
    After Div 115
    $200,000.00
    • Discount method (Div 115): 50.00% discount for individuals holding >12 months.
    Add to assessable income: $200,000.00. This figure is taxed at your marginal income tax rate — use the income tax calculator to model the cash impact.

    Frequently asked questions

    How does the 50% CGT discount work?+
    Resident individuals (and trusts) who hold a CGT asset for more than 12 months can reduce the assessable capital gain by 50% under Division 115 of the ITAA 1997. Complying superannuation funds get a 33⅓% discount; companies get no discount. The discount is applied AFTER any current-year and carried-forward capital losses are deducted.
    Is there a tax-free CGT threshold in Australia?+
    No. Unlike the UK's Annual Exempt Amount, Australia has no general CGT-free threshold for individuals. Every dollar of net capital gain is added to assessable income and taxed at marginal rates. The 50% discount is the principal relief.
    What is the main residence exemption and the 6-year rule?+
    Under Subdivision 118-B, a dwelling that was your main residence for the whole ownership period is fully CGT-exempt (s.118-110). Section 118-145 lets you continue treating the dwelling as your main residence for up to 6 years while it is rented out, provided you don't treat another dwelling as your main residence during that absence. The 6-year clock can also reset if you re-occupy and leave again.
    What are the Small Business CGT Concessions?+
    Division 152 contains four concessions that stack: (1) the 15-year exemption (held 15+ years, owner 55+ retiring), (2) the 50% active asset reduction, (3) the retirement exemption (up to $500k lifetime cap), and (4) the small business rollover (defer gain if replacement asset acquired within 2 years). To access them you must satisfy the size test (net assets ≤ $6M or aggregated turnover < $2M) and the active asset test.
    Can I use indexation instead of the discount?+
    Only if the asset was acquired before 11:45am AEST on 21 September 1999. The indexation method (Subdivision 114-A) lets you uplift the cost base by CPI to 30 September 1999, but you cannot also claim the 50% discount on the same gain — you pick whichever produces the lower assessable amount.
    What happens to capital losses?+
    Capital losses can only offset capital gains, not other income. Unapplied losses carry forward indefinitely (ITAA 1997 s.102-10). They must be applied BEFORE the 50% discount, which makes the order in which you realise gains and losses material.

    Case law worth knowing

    Greig v Federal Commissioner of Taxation [2020] FCAFC 25 — shares acquired with the dominant intention of short-term profit-making (here, targeting takeover bids) can be on revenue account, with losses deductible under s 8-1 ITAA 1997 rather than ring-fenced as capital losses. The Full Federal Court applied the Myer Emporium principle to a senior executive's substantial share-trading losses — the investor-vs-trader line is fact-driven, not self-selected.

    Eichmann v Federal Commissioner of Taxation [2020] FCAFC 155 — land used to store business tools and equipment can be an active asset under s 152-40(1)(a) ITAA 1997 even where the storage is not directly integrated with day-to-day operations. Widens access to the small business CGT concessions for tradies and operators with separate storage premises.

    Not tax advice. Calculations are estimates based on the Income Tax Assessment Act 1997 — in particular Division 100 (CGT framework), Division 115 (discount method), Subdivision 114-A (indexation), Subdivision 118-B (main residence), and Division 152 (small business concessions). This calculator does not model partial main residence apportionment, the small business retirement super-contribution mechanics, foreign-resident CGT changes, deceased estates, or scrip-for-scrip rollovers. For personal advice consult a registered tax agent or the ATO.