Things to know
Complete this section if a capital gains tax (CGT) event happened in 2022–23. You may have made a capital gain, capital loss, or you may be entitled to apply an exemption or rollover.
For most CGT events, you make a:
- capital gain if the amount of money and property you received, or were entitled to receive, from the CGT event was more than the cost base of your asset; you may then have to pay tax on your capital gain
- capital loss if the amount of money and property you received, or were entitled to receive, from the CGT event was less than the reduced cost base of your asset.
Don't show at this section a 'listed investment company capital gain amount' included in a dividend paid by a listed investment company. See Dividend deductions.
Did you have a capital gains tax event in 2022–23?
There is a wide range of CGT events. The most common CGT event happens when you sell or give away a CGT asset, such as:
- real estate, including your family home, holiday home, investment property, hobby farm or vacant block of land
- shares and similar investments
- units in a unit trust or managed investment fund
- forestry managed investment scheme interests (as a subsequent participant)
- crypto assets
- collectables, for example, jewellery
- personal use assets.
Other CGT events happen, such as:
- an asset you owned was lost or destroyed
- you received an amount for entering into an agreement, for example, you agreed not to work in a particular industry for a set time period
- you entered a conservation covenant over land that you owned
- you received a non-assessable payment from a trust or company.
You may also have made a capital gain if:
- you were a beneficiary of, or had money invested in, a trust (including a managed investment fund), and
- the trust made a capital gain.
If you are not sure whether a CGT event happened in 2022–23, see 'Appendix 1, Summary of CGT events' in Guide to capital gains tax.
You can't deduct a capital loss from your assessable income, but in most cases, it can be used to reduce a capital gain you made in 2022–23. If you made no capital gain in 2022–23, defer the capital loss until you make a capital gain.
Generally, you disregard a capital gain or capital loss on:
- disposal of your main residence, if you were an Australian resident for tax purposes when you signed the sale contract
- assets you acquired before 20 September 1985
- cars, motorcycles and similar vehicles
- personal use assets such as boats, furniture, electrical goods and household items used or kept mainly for personal use or enjoyment which you acquired for $10,000 or less. If you acquired it
- for more than $10,000, you disregard only capital losses
- for $10,000 or less, you disregard both capital gains and capital losses
- collectables, for example an antique or jewellery, which you acquired for $500 or less
- compensation you received for personal injury
- the exchange of shares or units you owned in a company or trust under a takeover, if certain conditions were met
- shares in a company, or interests in a trust, where there was a demerger and certain conditions were met
- disposal of shares in a pooled development fund
- shares in a qualifying early stage innovation company (ESIC) held for less than 10 years and, in the case of capital gains, the shares were also held for at least 12 months; see Tax incentives for early stage investors
- disposal of certain investments by
- a venture capital limited partnership
- an early stage venture capital limited partnership
- an Australian venture capital fund of funds
- disposal of an asset to which the small business 15-year exemption applies
- transfer of an asset where the Small business restructure roll-over is available (gains or losses are deferred until the asset is disposed of).
If you have received or are entitled to a share of the income of a trust or managed fund, there may be CGT consequences depending on the component(s) of the distribution.
If you are a foreign resident beneficiary of a trust, and if 'managed-investment trust withholding tax' is payable on an amount that you received from that trust (other than in the capacity of a trustee), don't include any part of that amount on your tax return.
Real estate
Most Real estate is subject to CGT. Generally you disregard a capital gain or loss on Your main residence (your home) if you were an Australian resident for tax purposes when you signed the sale contract.
When 2 people separate or divorce, assets transferred between them usually qualify for the Relationship breakdown rollover.
If you have provided affordable rental housing to people earning low to moderate income you may be entitled to Tax incentives for investments in affordable housing.
Granny flat arrangements
From 1 July 2021 no CGT event arises to eligible individuals on certain granny flat arrangements if the arrangement satisfies the requirements of the provisions. A granny flat arrangement is a written agreement that gives an eligible person the right to occupy a property for life.
The CGT exemption will apply to the creation, variation or termination of a granny flat arrangement. To learn more, visit Granny flat arrangements and CGT.
Inheritance
CGT applies when you dispose of a CGT asset that you inherited. See Inherited assets and capital gains tax for more information on the tax treatment and capital gains exemptions of inherited assets.
Employee share schemes
If you have an interest in an employee share scheme (ESS), CGT may apply. See ESS and capital gains tax for more information on the CGT consequences for shares acquired under an employee share scheme.
Norfolk Island residents
For Norfolk Island residents, CGT may apply to assets acquired after 23 October 2015. CGT remains payable on Australian mainland assets.
Foreign and temporary residents
If you are a foreign resident see Main residence exemption for foreign residents for information on whether the main residence exemption applies to you.
The 50% CGT discount is not available to foreign and temporary resident individuals. You can only apply the discount to part of your capital gain if either of the following happened:
- you acquired the asset on or before 8 May 2012
- you had a period of Australian residency after 8 May 2012.
Under the Foreign resident capital gains withholding rules, foreign residents that dispose of certain Australian assets may have an amount withheld from the sale proceeds they receive. See Capital gains withholding: Impacts on foreign and Australian residents for more information on amounts withheld from sale proceeds.
Video tutorials
In myTax capital gains or losses digital resources, we’ve developed a series of videos designed to help you complete the capital gains section of myTax.
Completing this section
Before completing this section, you may wish to read What you may need.
We have shown any:
- capital gains you have at the Managed fund distributions section
- shares or real estate disposal information provided to us
- we may provide a link to additional shares and units records unable to be displayed in myTax. This link will open a new window. When you have finished reviewing those records go back to myTax, which will be open in another tab or window
- if shares or units amounts differ to your own records, check if the difference is the brokerage fee. Visit shares or units capital proceeds data to learn more. Note that the amounts shown have not been apportioned by your ownership percentage
- capital loss carried forward from your 2021–22 tax return, and
- indicator that you may have a CGT event for a crypto asset.
Check for any other CGT event information not pre-filled and include it all when calculating your capital gain or loss.
If you have an exemption or rollover that may allow you to reduce, defer or disregard your capital gain or capital loss, see CGT events and applying an exemption or rollover.
If you have a capital gain in the Managed fund distributions section, see Capital gains and managed funds.
To personalise your return to show capital gains or losses, at Personalise return select:
- You had Australian interest, or other Australian income or losses from investments or property
- Capital gains or losses that are not from a managed fund distribution.
To show your capital gains or losses, at Prepare return select 'Add/Edit' at the Capital gains or losses banner.
At the Capital gains or losses heading:
- Work out the capital gains or loss amounts to show at this section using the CGT record keeping tool, or manually calculate your capital gains or loss.
The CGT record keeping tool can help work out basic gain or loss events. CGT pre-fill data shown in myTax will be transferred to the tool.
If you do use the CGT record keeping tool, go to step 5.
Otherwise, if you manually calculate your capital gain or loss, read on. - Enter your Total current year capital gains.
This is calculated by adding all your capital gains for 2022–23 (except those that are disregarded). Do not apply capital losses, any CGT discounts or the small business concessions yet (other than the 15-year exemption). - Enter your Net capital gain.
This is the amount remaining after applying to your 2022–23 capital gains whichever of the following items are relevant to you (in the order listed)- 2022–23 capital losses
- unapplied net capital losses from earlier years
- any CGT discounts (including any CGT discount for affordable housing)
- the small business 50% active asset reduction
- the small business retirement exemption or rollover.
If you have capital losses to apply, you will find it to your advantage to apply them first to any capital gains that do not qualify for the CGT discount.
If you have a discount capital gain, you may not be entitled to the maximum CGT discount percentage of 50% if you are an individual (including a beneficiary of a trust) and:
- a foreign or temporary resident, or
- an Australian resident with a period of non-residency after 8 May 2012.
For more information, see CGT discount for foreign residents.
If the total amount remaining is positive or zero, enter the amount.
If you have a negative amount, enter zero. You have net capital losses to carry forward to later income years.
You can only use capital losses from collectables to reduce capital gains from collectables. You must disregard capital losses from personal use assets.
- Enter your Net capital loss carried forward to later income years.
If you have a negative amount from your calculation of Net capital gain at step 3, you have a net capital loss to carry forward to later income years. You can use net capital losses from earlier years that you have not yet used to reduce a capital gain in later years. - Answer the question Have you applied an exemption, rollover or additional discount?
If No, go to step 7.
If Yes, go to step 6. - Select the Capital gains tax exemption, rollover or additional discount type code.
For more information about CGT exemptions, rollovers or additional discount, see Guide to capital gains tax. - Enter the amount of the credit you are entitled to claim under the foreign resident capital gains withholding rules. For more information, see Capital gains withholding: Impacts on foreign and Australian residents.
- Complete the Capital gains tax schedule if:
- your current year capital gain or loss is more than $10,000, or
- you select the Capital gains tax exemption, rollover or additional discount type code of 'W: Affordable housing discount'.
- Select Save and continue when you have completed the Capital gains or losses section.
CGT events and applying an exemption or rollover
There are exemptions and rollovers that may allow you to reduce, defer or disregard your capital gain or capital loss. For more information about CGT exemptions and rollovers, see Guide to capital gains tax.
How you complete this section will depend on your circumstances:
- If you applied a full exemption or rollover to disregard or defer capital gains or capital losses, when completing the Capital gains or losses section:
- Do not complete Total current year capital gains and Net capital gain, and
- Go to step 5 in Completing this section.
- For example, if you applied full exemption as you are continuing to treat your former home as your main residence, in myTax you would:
- at step 5, answer Yes to the question Have you applied an exemption, rollover or additional discount?
- at step 6 to select ‘I: Main residence exemption’ at Capital gains tax exemption, rollover or additional discount type code.
- If you applied a partial exemption or rollover to disregard or defer some capital gains or capital losses, when completing the Capital gains or losses section:
- Add up all your capital gains for 2022–23 (except those that are disregarded) to work out your Total current year capital gains. Do not apply capital losses, any CGT discounts or the small business concessions (other than the 15-year exemption) to these capital gains.
- Work out your net capital gain or net capital loss.
- Go to step 1 in Completing this section.
Capital gains and managed funds
How you complete this section will depend on your circumstances:
- If your only capital gains are from a managed fund and, at the Managed fund distributions section, your share of the current year capital gains is $10,000 or less, you do not need to complete the Capital gains or losses section.
- If your only capital gains are from a managed fund and, at the Managed fund distributions section, your share of the current year capital gains is more than $10,000:
- myTax will prompt you to complete the Capital gains or losses section
- myTax will complete Total current year capital gains and Net capital gain in the Capital gains or losses section from the information shown in the Managed fund distributions section, and
- you will need to complete the Capital gains tax schedule
- Go to step 5 in Completing this section.
- If you have capital gains from a managed fund and a separate CGT tax event during the year, when completing the Capital gains or losses section:
- the capital gains amounts shown in the Managed fund distributions section will be automatically carried over to the Capital gains or losses section for you to review, and
- you will need to ensure that all your capital gains, including those from managed funds, are included in what you show at Total current year capital gains and Net capital gain
- Go to step 1 in Completing this section.
- If you have capital gains from a managed fund, no other CGT event during the year but have a carried forward capital loss from a prior year:
- myTax will prompt you to complete Capital gains or losses section
- the capital gains amounts shown in the Managed fund distributions section will be automatically carried over to the Capital gains or losses section for you to review, and
- you will need to ensure that your capital gains from managed funds are included in what you show at Total current year capital gains and Net capital gain
- Go to step 1 in Completing this section.
CGT exemption, roll-over or additional discount type codes
Using the table below, choose the exemption, rollover or additional discount code that best describes your circumstances. If more than one code applies, choose the code that applies to the largest amount of capital gain.
Shares or units capital proceeds data
Some market participants (for example, brokers) may report capital proceeds data to you differently to how they report it to the ATO:
- the sale amount (capital proceeds) reported to you is reduced by the brokerage fees incurred
- the capital proceeds reported to the ATO is not reduced by brokerage fees.
While both amounts reported are correct, the different amounts may be confusing and lead to incorrect calculation and reporting of the capital gain.
The table below shows an example comparison of the amounts reported.
Company code |
Pre-filled capital proceeds amount (provided by reporter to ATO and pre-filled) |
Sale amount (provided by reporter to you) |
Difference |
|---|---|---|---|
XYZ |
$3,500.97 |
$3,481.02 |
$19.95 |
ZYX |
$4,341.80 |
$4,321.85 |
$19.95 |
Check your amounts in your pre-filling service for accuracy. Shares and units pre-filling is informational only and entering differing amounts into your tax return will not prevent you from lodging.
What you may need
Before you start this section, you may want to ensure that you have your CGT details at hand, as well as helpful publications about CGT.
Your CGT details
These may include:
- details of the amount of any unapplied net capital losses from earlier years
- documents showing
- the date you acquired any asset to which a CGT event happened
- the date of the CGT event
- the date and amounts of any expenditure you incurred that
- form part of the cost base and reduced cost base of the asset
- are required to work out your capital gain or capital loss
- year-end, annual or distribution statements from trusts with net capital gains from which you received or were entitled to receive
- distributions of income
- distributions of non-assessable amounts.
Helpful publications
You may also need one or more of the following publications to complete this section. They explain the 3 methods available to calculate a capital gain: the indexation method, the discount method and the 'other' method.
- Capital gains tax explains what a capital gain is, how it applies, what assets are included and the exceptions and exemptions.
- Guide to capital gains tax explains how CGT works and will help you to calculate your net capital gain or net capital loss. It covers:
- the sale of a rental property
- vacant land
- a holiday home
- collectables (for example, jewellery)
- personal use assets (for example, a boat you use for recreation), and
- real estate, shares and units you inherited or got from the breakdown of your marriage or relationship.
- Small business CGT concessions explains what concessions are available to small businesses.
- Keeping records explains what to record and how long you need to keep records.
- Personal investors guide to capital gains tax is shorter and simpler than Guide to capital gains tax. It covers
- the sale, gift or other disposal of shares and units
- distribution of capital gains from managed funds
- non-assessable payments from companies and managed funds.
The personal investors guide to capital gains tax does not cover other CGT events, nor the CGT consequences for bonus shares, shares acquired under an employee share scheme, bonus units, rights and options, and shares and units where a takeover or demerger has occurred; for those see Guide to capital gains tax.
More information
Share of the income of a trust or managed fund
Managed funds (unit trusts) include:
- property trusts
- share trusts
- equity trusts
- growth trusts
- imputation trusts
- balanced trusts.
Other trusts include:
- discretionary trusts
- family trusts
- hybrid trusts
- business trusts.
Distributions from trusts and managed funds can include two components that have CGT consequences:
- distributions of trust income where the trust's net income for tax purposes includes a net capital gain
- distributions of non-assessable amounts.
You need to know whether your distribution includes these 2 amounts. To find out, check the statement (distribution statement, year-end or annual statement) from the trust. The statement should also show which method the trust used to calculate the capital gains included in the trust's net capital gain. There are 3 methods of calculating capital gains:
- indexation
- discount
- 'other'.
You must use the same method as the trust to calculate your own net capital gain.
Trustees and fund managers may use different terms to describe the calculation methods used and they may refer to capital gains calculated using the indexation and 'other' methods as 'non-discount gains'. If you are in doubt, check with your trust or fund manager.
Your distribution statement may include amounts called:
- NCMI capital gains
- Excluded from NCMI capital gains
Include both these amounts in the calculation of the net capital gain.
Tax incentives for investments in affordable housing
An additional capital gains tax (CGT) discount of up to 10% may be available when you sell an Australian residential rental property you used to provide affordable rental housing to people earning low to moderate incomes.
This increases the maximum capital gains discount percentage on capital gains upon the sale of this property from 50% up to 60% for eligible investors.
To be eligible for up to an additional 10% discount, you must meet the following conditions:
- the capital gain must have been either
- made by you as an Australian resident individual
- made by you as a foreign or temporary resident who is entitled to a discount percentage greater than 0 and you have been an Australian resident but not a temporary resident for some of the period after 1 January 2018 when the property was provided as affordable housing
- distributed or attributed to you either
- directly from a trust or managed investment trust (MIT)
- indirectly from a trust through an interposed partnership, MIT or other trust (this does not include public unit trusts or super funds)
- all the following must apply to the residential rental property you provided
- new or existing affordable housing through a registered community housing provider
- rental rates below market rent
- affordable housing to eligible tenants on low to moderate incomes (based on household income thresholds and household consumption)
- affordable housing for a minimum period of 3 years (1,095 days) from 1 January 2018. This can be continuous or an aggregation of 3 years over a longer period. The number of days you may have provided affordable housing before 1 January 2018 will not be counted.
You can apply this additional discount on or after 30 December 2020, if you meet all the conditions. This is the first date that you may be able to satisfy the 3-year qualifying period for the additional discount.
To calculate your affordable housing capital gain discount, you will need the number of days your investment property was used to provide affordable housing. If your investment was made:
- directly by you – you should have received an annual affordable housing certificate from your community housing provider
- through a trust or managed investment trust – you may need to contact the trustee to get the number of affordable housing days.
Related page
CGT discount for affordable housing
When you sell a property that you used for affordable rental housing, you can reduce your CGT by 10% more than the 50% discount.