Capital Gains Tax: A Comprehensive Guide for Investors

Capital Gains Tax (CGT) applies when you sell an asset for more than you paid for it. In Australia, if you hold the asset for more than 12 months, you may be eligible for a 50% CGT discount.

Key points:

- CGT is not a separate tax — it is part of your income tax

- The 50% discount applies to individuals and trusts (not companies)

- You can offset capital losses against capital gains

- The cost base includes purchase price, stamp duty, and improvement costs

- Different rules apply for shares, property, and cryptocurrency

Proper record-keeping from the date of purchase is essential.