Capital Gains Tax Advice and Returns

How capital gains tax works

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.

• Your capital gain is generally what you receive for the asset (the capital proceeds) less its cost base: what you paid for it plus costs such as stamp duty, legal fees and capital improvements.
• The 50% discount: if you are an Australian resident individual and owned the asset for more than 12 months, you can generally reduce the gain by half.
• Your home: your main residence is generally exempt. If you moved out and rented it, the 6-year rule may keep it exempt.
• Capital losses can only reduce capital gains, this year or in later years. They cannot reduce your salary or other income.
• Timing: for most sales, the gain belongs to the financial year in which you sign the contract, not when settlement happens.
• Records: keep purchase and sale contracts and records of costs for as long as you own the asset, and for five years after the sale.

How we help

• Before you sell: an estimate of the tax, so you can plan the timing and keep enough aside.
• Property: investment properties, former homes, and inherited property.
• Shares and crypto: working out gains and losses across many trades, and the records you need.
• Small business: checking whether the small business CGT concessions apply when you sell business assets.
• Reporting: including the gain correctly in your tax return and tracking capital losses to use later.

Fees

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 or Annandale office, or work with us by phone, video and email from anywhere in Australia.