The Australian Capital Gains Tax (CGT) Discount Calculator is a tax-planning tool designed to help investors estimate their CGT liability on the sale of assets like shares, property, or cryptocurrency under Australian tax law.

In Australia, capital gains are not taxed under a separate tax system; instead, they are added to your personal taxable income for the financial year in which the asset is sold. This can push you into a higher tax bracket, increasing your tax liability:

• The 50% CGT Discount: Individuals and trust entities who hold an asset for at least 12 months before selling are entitled to a 50% discount on the capital gain. This means only half of the net profit is added to your taxable income. For example, a $10,000 gain held for over a year is taxed as a $5,000 addition.

• Short-Term Gains: If you hold an asset for less than 12 months, you must pay tax on 100% of the capital gain at your marginal tax rate.

• Capital Losses: If you sell an asset at a loss, you cannot deduct the loss from your regular wage income. However, you can use capital losses to offset capital gains in the current year or carry them forward indefinitely to offset future gains.

This calculator computes your gross profit, applies deductible transaction costs (such as brokerage or agent commission), applies the 50% discount if eligible, and estimates the final tax payable based on your marginal tax bracket.

1. Input purchase and selling prices. 2. Input ownership duration. 3. Input other taxable income and capital losses. 4. View CGT owed and net profit.