What is capital gains tax?
Learn what capital gains tax is and when the ATO says it may apply to investments and assets.
Summary
Capital gains tax, or CGT, can apply when you dispose of an asset and make a capital gain. It is generally included as part of income tax rather than being a separate tax.
What this means
CGT may apply to assets such as shares, property, crypto assets and other investments. The outcome depends on the asset, when it was acquired, the cost base, proceeds, exemptions and other rules.
Investors should keep records from the time an asset is acquired until after it is disposed of.
Typical actions
- Identify whether a CGT event occurred.
- Keep purchase, sale and cost records.
- Check whether exemptions or discounts may apply.
- Include capital gains or losses in the tax return where required.
Official ATO sources
Last checked: 20 June 2026
Capital gains tax
ATO hub explaining capital gains tax.
CGT assets and exemptions
Explains CGT assets and exemptions.
Keeping records for investments and assets
Explains records needed for investments and assets.
Related questions
- When does CGT apply?
- What happens when I sell shares?
- How is crypto taxed in Australia?
- What records should investors keep?
Important notice: Tax Clarity is an independent information tool. This page provides general information based on official sources. It does not provide tax, legal, financial, or accounting advice. Tax rules can change, and how they apply depends on your circumstances. For advice about your situation, speak with a registered tax agent or qualified professional.
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