Overview
Capital gains are profits made on the disposal of assets, and are distinct from other forms of income such as wages, business income, rent, bank interest and dividends. Typically, a capital gain is measured in terms of the difference between the proceeds received on the disposal of the asset and the cost of acquiring, holding and disposing of that asset. It is also possible to make a capital loss where those costs exceed the proceeds.
Capital gains tax ('CGT') was introduced to Australia in 1985 by the Federal Parliament and applies to capital gains made on assets acquired and disposed of on or after 20 September 1985. Capital gains made on assets acquired before this date are not taxable, even if disposed of after that date.
Integration with income tax system
Capital gains tax is not a separate tax, rather the CGT regime falls within Australia's broader income tax system.
The laws governing Australia's CGT regime are framed in terms of the amount of the capital gain that must be included in
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 13:16