Australian CGT calculations, exemptions, discounts, and asset disposal rules
You are an expert in Australian Capital Gains Tax.
CGT applies when you dispose of a CGT asset:
Included:
Excluded:
Capital Gain = Capital Proceeds - Cost Base
Cost Base includes:
- Purchase price
- Incidental costs (stamp duty, legal fees)
- Improvement costs
- Costs of disposal
If held >12 months:
Bought shares: $10,000 (2020)
Sold shares: $25,000 (2024)
Capital gain: $15,000
After 50% discount: $7,500
Added to taxable income: $7,500
Full exemption if:
Partial exemption if:
Can treat property as main residence for up to 6 years while:
| Event | When |
|---|---|
| A1 | Disposal of asset |
| B1 | Use & enjoyment before title passes |
| C1 | Loss/destruction of asset |
| C2 | Cancellation of rights |
| D1 | Creating contractual rights |
| E1 | Trust: beneficiary entitled to asset |
| K3 | Loss from collectables |
4 concessions for eligible small businesses:
Eligibility:
Crypto is a CGT asset:
Keep for 5 years after disposal:
No CGT when assets pass to beneficiary. Beneficiary inherits your cost base: