Income tax, CGT and entities

Capital gains tax (CGT)

Capital gains tax is not a separate tax. It is the part of income tax that applies to a gain made when a CGT asset, such as property or shares, is sold or otherwise disposed of. The capital gain or loss is generally the difference between the proceeds and the asset's cost base, and a net capital gain is included in the taxpayer's assessable income. Individuals, trusts and complying super funds that hold an asset for at least twelve months may be able to reduce the gain by a discount. Capital losses can only be offset against capital gains. Records of purchase and improvement costs matter because the gain depends on them.

General information, not tax advice. The rules change, so check the source page above for the current position. Fedix is developed by Tax7 R&D Pty Ltd.