Capital gains tax applies when you sell an asset (shares, crypto, investment property) for more than you paid. The net capital gain is added to your regular taxable income and taxed at your marginal rate — not at a flat rate.

The 50% CGT Discount

If you're an individual and held the asset for more than 12 months, you only include 50% of the gain in your taxable income. This is one of the most significant tax concessions in Australia and makes a huge difference to your after-tax profit.

Cost Base

Your cost base isn't just the purchase price — it includes brokerage fees, legal costs, and any capital improvements. For investment property, it also includes stamp duty and conveyancing costs. Reducing your taxable gain with a complete cost base can save you thousands. Visit the ATO website for full details.