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🇦🇺 Australian Property Tax Tool

Capital Gains Tax Property Estimator Australia

Estimate the capital gain on an Australian property sale, including purchase and selling costs, capital improvements, eligible cost-base expenses, carried-forward capital losses, partial main-residence exemption and the CGT discount. You can also estimate the additional income tax that may result from the taxable capital gain.

Property & CGT Details

Enter amounts that apply to your property. Only include costs that are eligible to form part of the CGT cost base.

1. Property Purchase
$
$
2. Capital & Ownership Costs
$
$
$
3. Property Sale
$
$
4. Exemptions & Capital Losses
%
$
5. CGT Discount
6. Optional Income Tax Estimate
$ / year
Estimated taxable capital gain
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Enter your property details
Adjusted cost base —
Gross capital gain / loss —
Gain after exemption —
Gain after capital losses —
CGT discount applied —
Indicative additional income tax —

Estimated Cost Base

Only include amounts that are eligible under Australian CGT cost-base rules and have not been treated inconsistently elsewhere.

Purchase price —
Buying costs —
Capital improvements —
Other eligible cost-base amounts —
Selling costs —
Less cost-base reductions —
Adjusted cost base —

Capital Gain Calculation

This shows each major step used by the estimator.

1
Gross capital gain —
2
Taxable portion after main-residence exemption —
3
Less carried-forward capital losses —
4
CGT discount —
5
Taxable capital gain added to taxable income —
Important CGT complexity warning

Main-residence rules, the six-year absence rule, first-use-to-produce-income market-value rules, inherited property, foreign residency, depreciation, capital works deductions, pre-CGT property and ownership changes can materially alter a property CGT calculation. Treat this result as an estimate only.

Property Sale Price CGT Comparison

See how different sale prices could affect the estimated gross and taxable capital gain using the same cost-base, exemption, losses and discount assumptions.

Sale Price Gross Gain Gain After Exemption Taxable Capital Gain Indicative Extra Tax

How to Use the Capital Gains Tax Property Estimator

Enter the property’s purchase price, acquisition costs, eligible capital improvements and other amounts that form part of the CGT cost base. Then enter the sale price and selling costs.

If the property qualifies for a partial main-residence exemption, enter the estimated exempt percentage. You can also enter carried-forward capital losses and indicate whether the property was held for at least 12 months.

The estimator calculates:

  • Estimated adjusted property cost base;
  • Gross capital gain or capital loss;
  • Gain remaining after an entered main-residence exemption;
  • Gain after carried-forward capital losses;
  • Estimated CGT discount;
  • Taxable capital gain; and
  • An indicative increase in income tax for an Australian resident individual.

What Is Capital Gains Tax on Property in Australia?

Capital gains tax, commonly called CGT, can apply when you dispose of an asset such as an investment property.

CGT is not generally a separate flat-rate tax. A net taxable capital gain is generally included in your assessable income and taxed through the Australian income-tax system.

This means the amount of tax arising from a property capital gain can depend on your other taxable income as well as the amount of the taxable capital gain.

Basic Property Capital Gain Formula

Capital Gain = Capital Proceeds − Property Cost Base

For a straightforward property sale, the sale proceeds are normally compared with the property’s eligible CGT cost base.

What Is the Cost Base of an Investment Property?

The property’s CGT cost base can include more than the original purchase price.

Depending on the circumstances, relevant cost-base elements can include:

  • The amount paid to acquire the property;
  • Stamp duty;
  • Conveyancing and legal fees;
  • Some valuation and professional costs;
  • Eligible ownership costs;
  • Capital improvements;
  • Costs associated with preserving ownership rights;
  • Real-estate agent selling commission; and
  • Legal and other eligible disposal costs.
Do not simply add every property expense to the CGT cost base.

Some expenses may have already been deductible for income-tax purposes, may be excluded from the cost base, or may require another adjustment. Capital works deductions and other tax treatments can also affect the eventual CGT calculation.

Property CGT Example

Assume:

  • Purchase price: $500,000
  • Buying costs: $20,000
  • Capital improvements: $30,000
  • Selling costs: $20,000
  • Sale price: $750,000

Simplified cost base:

$500,000 + $20,000 + $30,000 + $20,000 = $570,000

Gross capital gain:

$750,000 − $570,000 = $180,000

If an eligible Australian resident individual can apply a 50% CGT discount after capital losses:

$180,000 × 50% = $90,000 taxable capital gain

The $90,000 is then generally relevant to the individual’s income-tax calculation rather than being taxed at a separate universal CGT rate.

What Is the 50% CGT Discount?

Eligible Australian resident individuals can generally access a CGT discount for qualifying capital gains where the relevant asset has been held for at least 12 months.

For an eligible individual, the discount percentage is generally 50%.

Discounted Capital Gain = Eligible Capital Gain × 50%

The discount does not mean that the property’s tax rate is 50%. It means that, under the discount method, only the discounted portion of the eligible gain is included as a taxable capital gain.

Do Companies Receive the 50% CGT Discount?

Companies generally do not receive the individual 50% CGT discount.

For this reason, choosing Company in the calculator disables the 50% discount estimate.

Trusts and superannuation funds can have different rules and are not automatically modelled by this simplified calculator.

Do Capital Losses Reduce a Property Capital Gain?

Capital losses may generally be applied against eligible capital gains before the CGT discount is applied.

This is an important sequencing issue.

Capital Gain − Applicable Capital Losses = Gain Before CGT Discount

Then, if eligible:

Gain Before Discount × 50% = Discounted Capital Gain

What Is the Main Residence Exemption?

A dwelling that qualifies as your main residence can potentially receive a full or partial CGT exemption.

Whether a property is fully exempt, partly exempt or taxable can depend on matters including:

  • When the property was acquired;
  • When you moved into it;
  • How long it was your home;
  • Periods during which it produced income;
  • Whether another property was treated as your main residence;
  • Periods of absence;
  • Whether the property was first used to produce income after being your home; and
  • Changes in ownership.

Because these rules are fact-specific, this calculator asks you to enter the estimated exempt percentage rather than automatically determining it.

What Is the Six-Year CGT Rule?

In certain circumstances, a dwelling that was previously your main residence can continue to be treated as your main residence while you are absent from it.

Where the dwelling is used to produce income, such as being rented, the relevant absence concession can generally be available for up to six years for a qualifying period.

The rules become more complicated if you own or nominate another main residence, move back into the property, have multiple periods of absence or rent the property for longer periods.

The six-year rule is not simply “rent a house for six years and pay no CGT”.

Eligibility depends on the property’s previous use as your main residence and other circumstances. This calculator therefore does not automatically apply the six-year rule.

What Is the Home First Used to Produce Income Rule?

A special market-value rule can sometimes become relevant where a home that qualified for the main-residence exemption is later first used to produce income.

In applicable circumstances, CGT may need to be calculated by reference to the property’s market value when it was first used to produce income, rather than simply using the original purchase price.

This can materially change the capital gain.

Because the rule requires information about property use and valuation, it is not automatically applied by this calculator.

Can Renovations Reduce Capital Gains Tax?

Capital expenditure that increases or preserves the value of the property may form part of the CGT cost base where the applicable requirements are satisfied.

Examples may include qualifying structural improvements or renovations.

Normal repairs and maintenance are not automatically treated the same way as capital improvements, particularly where they have been claimed as income-tax deductions.

Can Stamp Duty Be Included in the Cost Base?

Acquisition stamp duty can generally be relevant to the incidental costs of acquiring a CGT asset.

The calculator therefore includes a general buying-cost field where an eligible stamp-duty amount can be entered together with other acquisition costs.

Can Real Estate Agent Fees Reduce the Capital Gain?

Eligible costs associated with disposing of the property, such as real-estate agent commission and certain legal costs, can generally be relevant when determining the property’s CGT cost base.

Enter qualifying amounts in the Selling Costs field.

Can Mortgage Interest Be Added to the Cost Base?

The treatment of ownership and financing costs depends on the property’s use and whether amounts have been or could be deducted for income-tax purposes.

For a rental property, many ordinary holding expenses may already have income-tax treatment and therefore should not simply be added again to the CGT cost base.

Use the Other Eligible Cost-Base Costs field only after confirming the amount is eligible for your circumstances.

What Are Cost-Base Reductions?

Certain tax treatments can require adjustments to the property’s cost base.

Rather than attempting to determine every possible adjustment, this estimator provides a Cost-Base Reductions input.

This can be used when you have already determined that your otherwise calculated cost base needs to be reduced by a particular amount.

Does Depreciation Affect Property CGT?

Depreciating assets and capital works can interact with CGT calculations in ways that are not captured by simply entering the property’s purchase and sale prices.

For example, deductions associated with qualifying capital works can affect the property’s eventual cost-base calculation.

A tax professional or detailed tax records may therefore be needed for investment properties with substantial depreciation or capital-works claims.

How Is Capital Gains Tax Actually Taxed?

For an individual, the taxable capital gain is generally part of the income-tax calculation.

A simplified example is:

Other Taxable Income + Taxable Capital Gain = Taxable Income After Capital Gain

The calculator estimates the difference between tax on your other taxable income and tax after adding the estimated taxable capital gain.

This is why two people selling properties with identical capital gains can potentially have different income-tax outcomes.

Australian Resident Income Tax and CGT

The optional tax estimate uses Australian resident individual income-tax rates for the selected financial year.

It is designed to show how adding a taxable capital gain can move parts of your income through different marginal tax brackets.

The estimate does not include every possible tax adjustment.

Does Medicare Levy Apply to Capital Gains?

A taxable capital gain can increase taxable income and can therefore affect calculations connected with the Medicare levy.

The calculator includes an optional simplified 2% levy effect.

It does not fully model:

  • Low-income Medicare levy reductions;
  • Family thresholds;
  • Exemptions;
  • Medicare levy surcharge; or
  • Private health insurance interactions.

Investment Property vs Main Residence CGT

Investment property

A property held and used entirely as an investment will generally have a different CGT position from a property that qualified as the owner’s main residence for part or all of the ownership period.

Main residence

A qualifying main residence can potentially receive a full or partial CGT exemption.

A property that changes between personal and income-producing use may therefore require a more detailed calculation than a property used exclusively for one purpose.

What If I Make a Capital Loss?

If the property’s relevant capital proceeds are below its applicable reduced cost base, a capital loss may arise.

Capital losses generally cannot simply be deducted against salary or ordinary employment income. They are generally relevant to capital gains under the CGT rules.

This estimator displays a negative result where the simplified sale calculation produces a loss, but does not determine the formal reduced cost base or all CGT-loss rules.

What About Property Purchased Before 20 September 1985?

Australian CGT generally applies to assets acquired on or after 20 September 1985, subject to specific rules and exceptions.

Pre-CGT assets and later capital improvements can require special treatment.

This calculator is intended primarily for post-CGT property and does not automatically calculate pre-20 September 1985 property rules.

Does This Calculator Include Foreign Resident CGT Rules?

No.

Australian property held by foreign or temporary residents can involve different CGT discount and main-residence rules.

The calculator’s individual option assumes an Australian resident individual for the simplified CGT-discount estimate.

Property CGT Estimator Assumptions

This calculator assumes:

  • The property is a post-CGT asset unless otherwise professionally adjusted;
  • All amounts entered as cost-base expenses are eligible;
  • Amounts already deducted are not incorrectly counted again;
  • The entered exempt percentage has already been determined;
  • Carried-forward capital losses entered can be applied to the gain;
  • An eligible resident individual receives a 50% discount when the 12-month condition is selected;
  • Companies receive no 50% individual CGT discount;
  • The taxable capital gain is added to other taxable income;
  • The optional Medicare levy calculation is simplified;
  • No HELP, offsets, Division 293, Medicare levy surcharge or other tax adjustments are included;
  • Foreign resident rules are excluded;
  • Trust and super fund CGT rules are excluded; and
  • The result is an estimate rather than an Australian tax return calculation.

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Property Capital Gains Tax FAQs

How is capital gains tax calculated on an investment property?

A simplified calculation compares the property’s capital proceeds with its eligible CGT cost base. Applicable capital losses, exemptions and CGT discounts are then considered to determine the taxable capital gain.

Is Australian CGT charged at a fixed tax rate?

Generally no for individuals. A taxable net capital gain is generally included in taxable income and taxed through the individual income-tax system.

Can I get a 50% CGT discount on an investment property?

Eligible Australian resident individuals may generally receive the 50% CGT discount on qualifying assets held for at least 12 months. Other taxpayer types and circumstances can have different treatment.

Do stamp duty and legal fees form part of the property cost base?

Eligible incidental acquisition costs such as stamp duty and certain legal fees can generally be relevant to a property’s CGT cost base.

Can renovation costs reduce a capital gain?

Eligible capital expenditure that increases or preserves the property’s value can potentially form part of the cost base. Ordinary repairs and deductible expenditure may have different treatment.

What is the six-year CGT rule?

In qualifying circumstances, a former main residence may continue to be treated as a main residence for a period while it is used to produce income. The rules are subject to conditions and are not automatically applied by this calculator.

Does a company receive the 50% CGT discount?

No. The standard individual 50% CGT discount is not available to companies.

Is Easy Calculator’s CGT result the amount I will pay the ATO?

No. The result is an estimate. Actual CGT and income tax depend on your tax records, ownership history, property use, deductions, capital losses, exemptions, residency and other circumstances.

Important: This Capital Gains Tax Property Estimator provides general estimates only and is not an ATO assessment, tax return or personal tax advice. Australian property CGT can be complex, particularly where a property has been a main residence, rented for only part of the ownership period, first used to produce income after being a home, inherited, jointly owned, substantially renovated, depreciated or owned by a foreign resident, company, trust or superannuation fund. Confirm eligible cost-base amounts, exemptions, capital losses and CGT discounts using current ATO guidance or a registered tax professional. EasyCalculator.com.au is not affiliated with the Australian Taxation Office.