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Capital Gains Tax

Capital Gains Tax (CGT) is the tax you pay on a capital gain. It is not a separate tax, just part of your income tax. Selling assets such as real estate, shares or managed fund investments is the most common way you make a capital gain or capital loss.

All assets you have acquired since 20 September 1985, including options, rights and business goodwill are subject to the CGT rules unless specifically excluded.

If you are an individual, some of your main assets are generally excluded or exempted from CGT. These assets, include your main residence, a car, motorcycle or similar vehicle and assets for personal use acquired for $10,000 or less.

These and other exemptions, rollovers and concessions may allow you to ignore, defer or reduce your capital gain or capital loss.

CGT does not apply to depreciating assets you use solely for taxable purposes. Gains (or losses) made on these assets are treated as assessable income (or claimed as deductions). Such assets may include business equipment or fittings in a rental property.