Wednesday 8th October 2025
Understanding CGT in Australia
Capital Gains Tax (CGT) is the tax you pay on the profit made when you sell certain assets. It’s not a separate tax — it’s part of your income tax.
CGT applies to:
For example, if you buy shares for $5,000 and sell them for $5,500, the $500 profit is a capital gain. You’ll pay tax on that gain at your individual income tax rate.
Important notes:
Understanding CGT is crucial for investors and property owners. Speak to your broker or tax adviser to plan ahead and avoid surprises at tax time.