Capital gains tax (CGT)
Tax on the profit made when you sell an asset such as an investment property, calculated as the sale price less the cost base.
- Applies to investment property, not usually your main residence
- Gains are added to your taxable income
- Rules changed under 2026 tax laws, for gains accruing from 1 July 2027
How it works
The capital gain is the sale proceeds minus the property's cost base. It is added to your assessable income in the year you sign the sale contract.
The 2026 changes
For individuals, trusts and partnerships, the 50% CGT discount is replaced by cost base indexation plus a 30% minimum tax rate, for gains that accrue after 1 July 2027. Gains before that date keep the existing rules.
CGT shapes when to sell and how to own property. Plan it with your accountant before you buy, not when you sell.
Common questions
Do I pay CGT on my home?
Usually not on your main residence, though exceptions apply.
When is CGT paid?
Through your tax return for the year the sale contract was signed.
Related terms
Sources
General information only. It does not consider your objectives, financial situation or needs, and is not financial, credit, tax or legal advice. Rules change, so check current law and get advice from a licensed professional before acting.