Updated for 12 May 2026 Budget
Hold an asset for more than 12 months and you only pay tax on half the gain. See exactly how much CGT you owe — and what you keep after tax.
ATO 2025–26 rates, 50% discount or reformed indexation method, grandfathering check, marginal rate impact — instant, private, free.
Your cost base — purchase price plus incidental costs and capital improvements.
Enter your purchase and sale details, plus your annual income, then click Calculate to see your CGT, net gain after tax, and bracket impact.
The 12 May 2026 federal budget announced the replacement of the 50% CGT discount with cost-base indexation plus a 30% minimum tax floor. The new system applies from 1 July 2027. Pre-budget acquisitions are grandfathered to the current 50% discount for the life of the holding. Eligible new builds can elect between the two methods on sale.
| Scenario | Current Rules (to 30 Jun 2027) | Post-1 Jul 2027 Reform |
|---|---|---|
| Asset acquired before 7:30pm 12 May 2026 | 50% discount if held >12 months | Grandfathered — 50% discount for life |
| Asset acquired on/after 12 May 2026 (non-new-build) | 50% discount (transition) | Indexed cost base + 30% min tax |
| New build property | 50% discount | Choice — 50% discount OR indexation method |
| Complying super fund | 33.33% discount | Existing super treatment retained |
| Company | No discount — full company tax | Unchanged |
| Main residence (PPOR) | Full exemption | Unchanged |
CGT is not a separate tax — capital gains are added to your assessable income and taxed at your marginal rate. The 50% discount (current rules) or indexation method (reformed rules) are the main tools to reduce CGT liability.
| Asset Holder | Discount Method | Holding Period Required | Notes |
|---|---|---|---|
| Individual | 50% discount | More than 12 months | Most common — applies to property, shares, crypto held by individuals |
| Trust | 50% discount | More than 12 months | Discount flows through to beneficiaries on their share |
| Complying super fund | 33.33% discount | More than 12 months | Effective CGT rate of 10% inside super (15% × 2/3) |
| Company | No discount | — | Companies pay full company tax (25% / 30%) on capital gains |
| Held ≤12 months | No discount | — | Entire gain added to income — taxed at marginal rate up to 45% |
| Main residence | Full exemption | — | PPOR exemption if never rented out and on ≤2 hectares of land |
The 50% CGT discount allows individuals and trusts to reduce a capital gain by 50% if the asset was held for more than 12 months before being sold. For example, a $100,000 capital gain on a property held for 5 years is reduced to $50,000 taxable — taxed at your marginal income tax rate. The discount does not apply to companies. The 12 May 2026 federal budget announced replacement of the 50% discount with cost-base indexation plus a 30% minimum tax from 1 July 2027. Pre-budget acquisitions are grandfathered to the 50% discount for the life of the holding; new build property investors can elect between the two methods.
From 1 July 2027, the 50% CGT discount is replaced by two new mechanisms applied together: (1) cost-base indexation — the asset's cost base is uplifted by CPI over the holding period, reducing the taxable gain; and (2) a 30% minimum tax floor on the indexed gain — top earners cannot effectively pay less than 30% of the indexed gain. Assets acquired before 7:30pm AEST 12 May 2026 are grandfathered to the existing 50% discount permanently. Eligible new builds can elect either method on sale. The reform applies equally to property, shares, crypto, and other CGT assets held for more than 12 months.
CGT in Australia is not a separate tax — capital gains are added to your assessable income and taxed at your marginal rate. The formula is: Capital Proceeds (sale price minus selling costs) minus Cost Base (purchase price plus incidental costs and capital improvements) equals Gross Gain. If held over 12 months, apply the 50% discount. The discounted gain is added to your other income for the year and taxed at the relevant marginal rate — up to 45% for high earners.
Your main residence is generally exempt from CGT under the principal place of residence (PPOR) exemption. The full exemption applies if the property was your main residence for the entire ownership period, you never used it to produce income (such as renting it out), and it sits on land of 2 hectares or less. Partial exemptions apply if the home was rented out or used for business — the 6-year temporary absence rule can extend the exemption if you move out and rent the property for up to 6 years.
Yes. Capital losses can offset capital gains in the same financial year, or be carried forward indefinitely until used. Losses must be applied to the gross gain before the 50% discount is calculated — this gives a better outcome than applying losses after the discount. Capital losses can only offset capital gains, not other income such as salary. There is no time limit on carrying forward unused capital losses, so historic loss-making investments can still reduce future CGT bills.
If you sell an asset within 12 months of acquiring it, the 50% CGT discount does not apply — the entire gross gain is added to your taxable income for the year. This can push you into a higher marginal tax bracket. Strategically, if you are close to the 12-month threshold, waiting until after the anniversary can halve your CGT liability. The 12-month period is measured from the contract date of acquisition to the contract date of sale, not the settlement dates.