Capital Gains Tax (CGT)
Capital Gains Tax (CGT) is the tax you pay on the profit made when selling an investment property.
Quick Reference:
Tax on profits. 50% discount possible. Exemption: Main home.
Expanded Explanation:
In Australia, CGT applies when you sell an investment property for more than you paid. The profit known as a capital gain, is added to your taxable income. If you’ve owned the property for more than a year, you may qualify for a 50% CGT discount. Your main residence is usually exempt from Capital Gains Tax, but all investment properties are subject to it. CGT can have a large financial impace, investors often plan their sales around tax timing and eligibility for discounts.