Capital Gains Tax Accountants: Know the Tax Before You Sell
Selling an investment property, shares or crypto? We work out your capital gain before you sign, show you what the tax will be, apply every discount and exemption you're entitled to, and report it correctly in your tax return. In Chippendale, Sydney, or by phone and video anywhere in Australia.
What our CGT service covers
Capital gains tax (CGT) is not a separate tax. When you sell or dispose of an asset such as an investment property, shares or crypto, the capital gain is added to your taxable income for the year and taxed at your marginal rate. Getting it right comes down to the cost base, the timing and the exemptions, and that's where we come in.
- A CGT estimate before you sell. We work out the gain and the likely tax so you can choose when to sign and how much to keep aside.
- Investment property and former homes. We build the cost base from your purchase, holding and sale costs, reduce it by any capital works deductions you've claimed, and check whether a full or partial main residence exemption applies (including the 6-year rule).
- Inherited property and shares. We apply the cost base rules for inherited assets and the 2-year rule for the deceased's home. See CGT on inherited property and our deceased estate tax returns service.
- Shares, ETFs and crypto. We work out gains and losses across many trades, including dividend reinvestment parcels and ETF cost base adjustments, and track capital losses so they're used in the right year.
- Business assets. We check whether the small business CGT concessions apply when you sell a business or its assets.
- Modelling the 1 July 2027 changes. We compare selling before and after 1 July 2027 and plan the market valuation you'll need.
- Reporting. We include the gain in your tax return and keep a record of losses carried forward to later years.
If you're still holding the property, see our rental property tax returns service.
What we need from you
Bring what you have. If something is missing, we'll tell you where to find it.
- Purchase contract and settlement statement (or broker trade confirmations for shares)
- Stamp duty, conveyancing and legal costs when you bought
- Receipts for capital improvements (renovations, extensions, landscaping)
- Your depreciation schedule or past tax returns showing capital works deductions claimed
- Sale contract (date signed), settlement statement and the agent's commission invoice
- Dates you lived in the property, rented it out or left it vacant
- For crypto: exchange transaction exports and your wallet addresses
- Any capital losses carried forward from earlier years
- Whether you were an Australian resident for tax purposes the whole time you owned the asset
How your capital gains tax is worked out
The CGT event generally happens when you sign the contract, not at settlement. A contract signed in June belongs to that financial year even if settlement is in August.
- 01
Capital proceeds
Generally the sale price on the contract.
- 02
Less the cost base
What you paid, plus stamp duty and legal costs when you bought, capital improvements, and the agent's commission and legal fees when you sold. For property bought after 13 May 1997, capital works deductions you've claimed reduce the cost base.
- 03
Less capital losses
Capital losses from this year or earlier years come off the gain. They can't reduce your salary or other income.
- 04
Less the 50% discount
An Australian resident individual who owned the asset for more than 12 months can generally halve the gain that remains. The result (the net capital gain) is added to your taxable income.
Worked example
Priya, an Australian resident, earns a salary of $95,000 in 2026–27. She bought an investment unit in 2016 for $500,000 and paid $20,000 in stamp duty and legal fees. She later spent $30,000 on a new kitchen and has claimed $14,000 in capital works deductions over the years. She signs a contract to sell on 15 March 2027 for $790,000 and pays $20,000 in agent and legal fees.
- Capital proceeds: $790,000
- Cost base ($500,000 + $20,000 + $30,000 + $20,000 − $14,000): $556,000
- Capital gain: $234,000
- Less the 50% discount (owned more than 12 months): −$117,000
- Net capital gain added to her income: $117,000
Her taxable income rises from $95,000 to $212,000. That adds about $42,250 in income tax and $2,340 in Medicare levy, so she should keep roughly $44,600 aside for her 2026–27 tax bill. That's before offsets, and assumes she has private hospital cover. A one-off gain like this can push you over the Medicare levy surcharge threshold if you don't. Her contract was signed before 1 July 2027, so the whole gain is taxed under the current rules. If she sold in 2028 instead, the growth up to 30 June 2027 would still get the 50% discount, and only the growth after that date would be taxed under the new rules below.
The capital gains tax changes from 1 July 2027
The CGT changes from the May 2026 Budget are now law (Treasury Laws Amendment (Tax Reform No. 1) Act 2026). They apply to individuals, trusts and partnerships, for property, shares, crypto and business assets.
- Growth up to 30 June 2027 keeps the 50% discount. If you hold an asset on 30 June 2027, you're treated as selling it for its market value just before 1 July 2027 and buying it back straight away. No tax is payable then. The gain up to that date still gets the discount whenever you actually sell, so you don't need to sell before 1 July 2027 to keep it.
- Growth from 1 July 2027 is indexed instead. For that period your cost base is increased in line with inflation (CPI) and there's no 50% discount. Indexation is only available to Australian residents.
- A 30% minimum tax. For resident individuals, gains made from 1 July 2027 must bear tax of at least 30%. This mainly affects people who sell in a low-income year, such as after retiring. It doesn't apply to the pre-2027 part of the gain, to people who received certain income support payments during the year (including the Age Pension), or to new builds where the 50% discount is kept.
- New residential builds can keep the 50% discount or choose indexation, whichever is better.
- Your home: the main residence exemption is unchanged.
To split the gain you'll need each asset's market value at 30 June 2027. For listed shares that's the market price. For property, a valuation from a qualified valuer as close as possible to that date is the strongest evidence, though the Minister is setting an optional apportioning method. Our guide to the negative gearing and CGT changes from 2027 has a full worked example, and the ATO's capital gains tax reform page has the official detail.
When to talk to us before you sell
Most CGT savings come from decisions made before the contract is signed. Call us first if:
- You're selling property. Every vendor, including Australian residents, needs an ATO clearance certificate before settlement. Without one, the buyer must withhold 15% of the price and pay it to the ATO. Apply as soon as you list.
- You're choosing which financial year to sell in. The contract date decides the year. Moving a signing from June to July can shift the tax into a year when your income is lower, though the 30% minimum tax reduces this benefit for gains made after 1 July 2027.
- The property was once your home. You may be able to treat it as your main residence for up to 6 years after you moved out and rented it, but only if you didn't treat another home as your main residence for the same period.
- You're moving overseas or live overseas. Foreign residents lose the 50% discount for gains after 8 May 2012, generally can't use the main residence exemption, and won't get indexation after 1 July 2027.
- You're transferring an asset to a family member or a trust. This is generally treated as a sale at market value, even if no money changes hands, and a property transfer can affect negative gearing under the 2026 rules.
- You have capital losses, for example from shares or crypto, that could be used against this gain.
- You're selling a business or shares in your own company, where the small business concessions can reduce the gain, sometimes to nil.
- You inherited the asset, especially a home where the 2-year window is running.
What it costs
We agree a fixed fee with you before we start, so there are no surprises. The fee for managing your tax affairs is generally tax-deductible in the year you pay it. See us at our Chippendale office, or work with us by phone, video and email from anywhere in Australia.
Related services
Rental property tax returns
Still holding the property? Rental property returns, depreciation and negative gearing.
Rental property
Deceased estate tax returns
Inherited property and shares: date-of-death returns and deceased estate trust returns.
Deceased estates
Our Chippendale office
See us in Chippendale, or work with us by phone, video and email from anywhere in Australia.
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Frequently asked questions
It depends on your gain, how long you owned the asset and your other income, because the gain is taxed at your marginal rate. Tell us the details before you sell and we'll estimate it.
Generally not, if it was your main residence for the whole time you owned it. Partial exemptions can apply if you rented it out or used it to earn income.
Generally not for gains made after 8 May 2012 while you were a foreign resident. Foreign residents generally can't use the main residence exemption either, except in limited life events, and from 1 July 2027 they won't be able to use cost base indexation. Special rules apply to Australian property, so talk to us before you sell or move overseas.
CGT is worked out in your tax return for the year you signed the sale contract and is paid when that return is assessed, so set money aside. Nothing is withheld at settlement if you give the buyer an ATO clearance certificate. Without one, the buyer must withhold 15% of the price for the ATO, which you then claim back in your tax return.
No. If you hold an asset on 30 June 2027, you're treated as selling it and buying it back at market value just before 1 July 2027. The gain up to that date keeps the 50% discount whenever you sell. Only the growth after 1 July 2027 is taxed under the new rules, with indexation instead of the discount and a 30% minimum tax for resident individuals. A valuation at 30 June 2027 helps you prove the split.
It's a certificate from the ATO confirming you're an Australian resident for foreign resident capital gains withholding. Since 1 January 2025 there's no minimum price, so you need one for any Australian property you sell. If the buyer doesn't receive it before settlement, they must withhold 15% of the price and send it to the ATO. Apply online as soon as you decide to sell.
For most sales it's the year you sign the contract, not the year of settlement. A contract signed on 25 June 2027 that settles in August 2027 is taxed in your 2026–27 return under the current rules. If you're close to 30 June, the signing date can change both your tax rate and which CGT rules apply, so talk to us before you sign.
For gains up to 30 June 2027, yes: the gain is added to your income, so a lower-income year can mean a lower rate. For growth from 1 July 2027, resident individuals must pay at least 30% tax on the gain, so selling in a low-income year saves much less. People receiving certain income support payments, such as the Age Pension, are exempt from the minimum tax.
Generally, yes. Selling crypto for dollars, swapping one coin for another, or using crypto to buy something are all CGT events. Each needs a cost base and a date, which is why exchange exports and wallet records matter. Capital losses on crypto can reduce other capital gains, but not your salary.