Clear definitions of key Australian Australian capital gains tax on property, shares and crypto terms. Use this glossary alongside our calculator to understand your results.
A reduction available to Australian resident individuals and trusts who hold an asset for more than 12 months. Only 50% of the net capital gain is taxable.
An action that triggers the capital gains tax provisions — typically selling or disposing of an asset.
The profit made from selling a capital asset for more than its cost base. Added to assessable income and taxed at your marginal rate.
A loss made when selling a capital asset for less than its cost base. Can only offset capital gains — not ordinary income.
The total amount you paid for an asset including purchase price, acquisition costs (stamp duty, legal fees) and improvement costs.
Capital works deductions claimed on a building or structural improvement during ownership. Reduce the cost base of the asset for CGT purposes.
An alternative CGT calculation method for assets acquired before September 1999 that adjusts the cost base for inflation.
A complete exemption from CGT for your principal place of residence — your primary home.
A search of the Personal Property Securities Register to verify a vehicle has no existing finance. Available at ppsr.gov.au for $2.
Similar to cost base but used to calculate capital losses. Generally excludes some ownership costs like Div 43 deductions.
Capital gains remaining after applying capital losses, exemptions and discounts.
Allows a former main residence to be treated as a principal place of residence for up to 6 years while renting it out, maintaining the CGT exemption.
Selling an asset at a loss then repurchasing it shortly after. The ATO's anti-avoidance provisions may apply if the dominant purpose is to create a tax loss.
Now that you understand the terminology, use our free Capital Gains Tax Calculator to calculate your results. All terms above appear throughout the calculator and our guides.
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