What is the capital gains tax rate in Australia?

Australia has no separate CGT rate. Your net capital gain is added to your taxable income for the year and taxed at your marginal rate (0 to 45%), plus the 2% Medicare levy. If you held the asset for more than 12 months, the 50% CGT discount means only half the gain is taxed.

How does the 50% CGT discount work?

Australian resident individuals who hold an asset for at least 12 months can discount the taxable gain by 50% — only half is added to income. Capital losses are subtracted from gains first, then the discount applies to the remaining gain.

Can capital losses reduce my salary tax?

No. Capital losses can only offset capital gains, never ordinary income such as wages. Unused losses carry forward indefinitely to offset future gains, and they are applied before the 50% discount.

Is my home subject to CGT?

Your main residence is generally exempt under the main residence exemption. The 6-year absence rule can keep the exemption while it is rented out. Investment properties, shares, ETFs and crypto are subject to CGT.

Australia · 2026–27 financial year

Australia Capital Gains Tax Calculator

Australia has no separate CGT rate. Your net gain is added to income and taxed at your marginal rate — but hold an asset over 12 months and the 50% discount halves the taxable gain. Shares, property, ETFs and crypto.

The disposal

Sale proceeds What you sold the asset for

Cost base Purchase price + buying/selling costs + improvements

How long did you hold it?

Gross capital gain$0

Your other taxable income Salary, business, rent — sets your marginal rate

Capital losses

Capital losses this year + carried forward Offset gains only — never wages. Applied before the discount.

Capital gains tax

—

— of your gross gain · taxed at —

You keep – Discount-free – Income tax – Medicare –

Gross capital gain$0

Less capital losses$0

Less 50% CGT discount$0

Taxable net gain (added to income)$0

Income tax on the gain$0

Medicare levy (2%)$0

Total CGT$0

If you'd held under 12 months
no discount — the whole gain is taxed$0

Net proceeds kept

Effective CGT rate

Taxable net gain

Marginal rate

How capital gains tax works in Australia

CGT is not a separate tax. When you dispose of an asset for more than its cost base, the gain is added to your taxable income for that year and taxed at your marginal rate — so the same $50,000 gain costs far more for a top-bracket earner than for someone on a low income. The 2% Medicare levy applies on top of the added gain.

The 50% discount — the big lever

Hold an asset for at least 12 months and, as a resident individual, you discount the gain by 50% — only half is added to your income. The ATO's own example: a $70,000 long-term gain becomes a $35,000 net gain taxed at marginal rates. Selling even a day before the 12-month mark forfeits the discount entirely, so timing matters.

Losses come off first

Capital losses offset capital gains only — never your salary — and are applied before the discount, which makes them more valuable than they first appear. Unused losses carry forward indefinitely, so realising a loser in the same year as a big winner is a common, legitimate way to cut the bill.

Your home is usually exempt

The main residence exemption generally makes any gain on your home tax-free, and the 6-year absence rule can preserve that even while it's rented out. Investment properties, shares, ETFs and crypto are all in scope.

Frequently asked questions

What rate will I actually pay?

There's no fixed CGT rate. After the 50% discount (if eligible), the net gain is stacked on top of your other income and taxed at whatever marginal bands it falls into — plus 2% Medicare. On a long-term asset the effective rate on the gross gain is roughly half your marginal rate.

Does the discount apply to companies?

No. The 50% CGT discount is for individuals, trusts and complying super funds (one-third for funds). Companies get no discount and pay their flat 25% or 30% on the full gain.

What about crypto?

Crypto is a CGT asset. Selling, swapping one coin for another, or spending it are all CGT events. Held over 12 months, the 50% discount applies the same way as shares.

Is the discount changing?

The 2026–27 Federal Budget announced that, from 1 July 2027, the flat 50% discount would be replaced by CPI cost-base indexation plus a 30% minimum tax rate on real gains. That is announced, not yet legislated. This tool models current 2026–27 law.

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Australia take-home

Sets your marginal rate

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Australia sole trader

ABN business profit

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Australia company tax

Educational estimate — not tax advice. Australia 2026–27 (ATO): CGT is part of income tax — net capital gain is added to taxable income at resident marginal rates (0% to $18,200, then 16 / 30 / 37 / 45%) plus the 2% Medicare levy. Resident individuals get the 50% discount on assets held 12 months or more. Capital losses offset gains (not ordinary income), are applied before the discount, and carry forward. The tool assumes a resident individual, uses your other income to set the marginal bands, and excludes the main residence exemption, small business CGT concessions, the CGT cap, and the proposed post-1-July-2027 indexation regime. Confirm with the ATO or a registered tax agent.