Tax & Superannuation: Income - Guides
Income
4. Capital Gains Tax
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Last updated: 31 Jul 2015
- The Capital Gains Tax (CGT) provisions were introduced into the tax law to be effective from 19 September 1985. The main aim of CGT was to tax profits made on the disposal of assets.
- You will obtain a capital gain if you sell an asset that went up in value since you first purchased it. A taxable ‘CGT Event’ is said to occur when an asset is disposed of and there is a change of ownership from one person to another.
- A common example of a CGT event would be the sale of an investment property.
- CGT is payable on gains made on the disposal of assets acquired or deemed to have been acquired after 19 September 1985.
- The net capital gain made by a taxpayer in a particular year of income is included in your assessable income and subject to income tax.
- Individuals, trusts and superannuation funds may be entitled to discount the amount of capital gains that they have to pay.
- For more information see our Capital Gains topic.
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