Capital gains tax (CGT) is the tax you pay on a capital gain. It is not a separate tax, just part of your income tax. Selling assets such as real estate, shares or managed fund investments is the most common way you make a capital gain (or capital loss). Selling assets such as real estate, shares or managed fund investments is the most common way you make a capital gain or capital loss.Â
Managed funds also distribute capital gains that must be reported. All assets you have acquired since capital gains tax came in (on 20 September 1985) – including options, rights and business goodwill – are subject to the CGT rules unless specifically excluded. (Assets acquired before CGT came in are referred to as ‘pre-CGT assets’). If you are an individual, some of your main assets are generally excluded or exempted from CGT, including: your main residence a car, motorcycle or similar vehicle assets for personal use acquired for $10,000 or less.
