Question 1

What is the 'cost base' of an asset for capital gains calculation?

Accepted Answer

The cost base isn't just the purchase price. For an accurate capital gains tax calculation, it includes incidental costs of acquiring and selling the asset, such as stamp duty, legal fees, and agent commissions. A higher cost base reduces your capital gain.

Question 2

What is the 50% CGT discount in Australia?

Accepted Answer

If you are an individual and have held an asset for more than 12 months, you can generally reduce your net capital gain by 50%. This means only half of the capital growth tax is applied, as that portion is added to your taxable income. This is a key part of the taxation of capital gains in Australia.

Question 3

How are capital losses treated in Australia tax on capital gains?

Accepted Answer

You can use capital losses from the current year or carried forward from previous years to offset your capital gains. This must be done *before* applying the 50% CGT discount. You cannot deduct capital losses from your other income, only from capital gains.

Question 4

Is my main residence exempt from capital gains tax in Australia?

Accepted Answer

Yes, generally, your main residence (your home) is exempt from Capital Gains Tax (CGT). However, this exemption may not fully apply if you have used your home to produce income, such as renting it out or running a business from it.

Question 5

How do I calculate capital gain tax on property?

Accepted Answer

To calculate capital gain tax on property, subtract the property's cost base (purchase price + costs) from its sale price (minus costs). Then, apply any capital losses and the 50% CGT discount if applicable. The resulting taxable gain is added to your income and taxed at your marginal rate. This cgt calculator simplifies that process.

Question 6

Is this capitals gain tax calculator suitable for shares and crypto?

Accepted Answer

Yes, this calculator for capital gain tax can be used for shares, cryptocurrency, and other assets. The principles are the same: calculate the total gain, apply discounts/losses, and determine the tax on the final taxable amount.

Capital Gains Tax (CGT) Calculator Australia

Asset Purchase & Sale Details

How Capital Gains Tax Calculation Works

How Your CGT is Calculated in Australia

Capital Gains and Taxes: FAQs