How capital gains tax help usually works
Good CGT help follows a proven path so nothing important is missed.
- Discovery: clarify the asset, dates, ownership structure, residency, and why you’re selling.
- Asset mapping: identify CGT events in scope (property, shares, crypto, business assets, rollovers, restructure).
- Cost base build: gather purchase price, incidentals (duty, legal, inspections), improvements, holding and selling costs.
- Adjustments: apportion for private vs income‑producing use; apply main residence rules and partial exemptions if relevant.
- Discounts and concessions: test the 12‑month rule and small business CGT concessions where eligibility exists.
- Calculation and timing: model outcomes (e.g. sign pre/post 30 June, stagger disposals, use losses effectively).
- Documentation and lodgement: prepare schedules, attach workpapers, and align with the tax return obligations.
Australian CGT rules to keep in view
- CGT event timing: for most sales, the contract date is the CGT event date (not settlement).
- 12‑month discount: individuals and trusts may reduce gains by 50% if the asset was held longer than 12 months.
- Main residence: generally exempt; partial CGT can arise if rented or used for business. The 6‑year absence rule may apply.
- Small business CGT concessions: four concessions can reduce, exempt or defer gains on active business assets if eligibility tests are met.
- Pre‑CGT assets: assets acquired before 20 September 1985 are typically exempt (watch improvements and restructures).
- Losses: capital losses can offset capital gains and carry forward; they don’t reduce other income.
- Shares and crypto: usually CGT for investors; business‑like activity may be on revenue account.
- Foreign resident withholding: selling Australian property over $750k may trigger 12.5% withholding unless a clearance certificate is obtained.
Common CGT scenarios we help with
Residential property
Main residence exemption checks, partial exemptions for rental periods, improvements and selling costs, and timing around 30 June.
Investment property
Full CGT calculation, depreciation impact, cost base adjustments, and record reviews to support the numbers.
Business sale
Small business CGT concessions assessment, active asset tests, retirement exemption, and rollover options.
Shares and ETFs
Parcel identification (FIFO/specific), corporate actions, franking credit interactions, and capital loss utilisation.
Cryptocurrency
Exchange records, cost base tracking, staking/airdrop treatment and distinguishing investor vs trader positions.
Restructure or rollover
Demergers, scrip‑for‑scrip and small business rollovers to defer gains where conditions are met.
What to compare before you commit
Scope
Confirm inclusion of cost base build, discount and concession testing, calculations, advice on timing, documentation and return lodgement support.
Experience
Ask for recent CGT work similar to yours (property, business sale, crypto, restructure) and which structures they work with (individuals, companies, trusts).
Turnaround and communication
Establish when numbers will be ready, how queries are handled, and escalation paths near settlement or year‑end.
Fees
Understand fixed vs hourly billing, what data quality is assumed, and which extras (complex concessions, amended returns) might add cost.
Small business CGT concessions (overview)
These concessions can be game‑changing when selling an eligible active business asset:
- 15‑year exemption: potential full exemption if conditions are met and you’ve owned the asset for 15+ years.
- 50% active asset reduction: reduces the remaining gain by 50% on eligible assets.
- Retirement exemption: exempt up to a lifetime limit if contributions or payment conditions are met.
- Small business rollover: defer the gain by acquiring a replacement active asset within time limits.
Eligibility depends on tests such as turnover or net asset value, the active asset test, and ownership and participation percentages. Order of applying concessions with the general 50% discount matters—get advice to optimise.
Records and information to bring
- Purchase and sale contracts with dates (contract and settlement), plus any options or variations.
- Costs: stamp duty, legal fees, inspections, loan establishment, agent and marketing fees, improvements.
- Use history: main residence periods, rental periods, business use percentages, and vacancy dates.
- Corporate actions for shares/ETFs and full crypto transaction histories (CSV/API exports where possible).
- Evidence supporting small business concession eligibility (turnover, net asset value, active asset tests).
When to get help
- Before signing a contract: structure, timing and conditions can change your outcome.
- When selling a business or major asset: to test small business concessions and rollover options.
- If records are incomplete: so the cost base is rebuilt correctly and defensibly.
- At year‑end: to plan gains vs losses and manage PAYG instalments.
If you have already signed, it’s still worth reviewing your position—just move quickly.
Best next steps
Write down the asset, dates, estimated sale price, and any improvements or major costs. Note whether the asset was a main residence, investment, or active business asset, and whether you have carried‑forward capital losses.
Then shortlist providers who can clearly explain the calculation steps, timing options and paperwork—before you commit to a sale or lodgement.
Frequently asked questions
What is capital gains tax (CGT) and when does it apply?
CGT is the tax on profit when you sell or dispose of a CGT asset such as property, shares, crypto or business assets. In Australia, the CGT event usually occurs on the contract date. Net gains are included in your income tax return and taxed at your marginal rate (for individuals) or company rate.
Do I get the 50% CGT discount?
Individuals and trusts may reduce a capital gain by 50% if the asset was held for more than 12 months. Companies do not receive the discount. Apply capital losses first, then the discount, then small business CGT concessions where eligible.
Is my home exempt from CGT?
Generally yes for your main residence. Partial CGT may apply if the property was rented or used for business. The 6‑year absence rule may preserve the exemption while you live elsewhere, provided conditions are met.
How does CGT work for shares and crypto?
For investors, gains or losses arise on disposal based on sale proceeds minus cost base. Keep detailed brokerage or exchange records. If activity is frequent and business‑like, some outcomes may be on revenue account instead of CGT.
What are the small business CGT concessions?
There are four concessions that can eliminate, reduce or defer CGT on eligible active business assets: the 15‑year exemption, 50% active asset reduction, retirement exemption and small business rollover. Eligibility depends on turnover or net assets, active asset status and ownership tests.
What should I do first?
Collect key documents (purchase/sale contracts, improvement costs, use history) and speak to a tax accountant before signing a contract if possible. Early advice can improve the outcome substantially.