Australian Capital Gains Tax

It is important to understand the Capital Gains Tax regime as it will apply to almost every individual, most commonly, on the disposal of an asset.

Capital Gains Tax was first introduced on 19 September 1985. Capital gains on many assets acquired after 19 September 1985 are generally subject to tax. Assets held prior to this date will not be liable to CGT.

The capital gain may be discounted by 50%, commonly known as the general discount, if the asset was held for more than 12 months. Generally, capital gains are not taxed separately but the capital gain, after being discounted, is added to the taxpayer’s other income and taxed at normal rates.