Australia Capital Gains Tax
Detailed capital gains tax rates and rules for Australia in 2026.
Capital gains in Australia are not taxed at a separate rate but are included in the taxpayer's assessable income and taxed at their marginal income tax rate. However, individuals and trusts that hold a capital asset for more than 12 months are entitled to a 50% CGT discount, effectively halving the taxable gain. This means the top effective rate on long-term capital gains is approximately 23% (being 50% of the 45% top marginal rate, plus the 2% Medicare Levy reduces the effective discount slightly). Complying superannuation funds receive a one-third CGT discount on assets held for more than 12 months. Companies do not receive any CGT discount.
Standard Rate
23%
Exemptions
- Main residence exemption for the family home
- 50% CGT discount for assets held longer than 12 months by individuals and trusts
- Small business CGT concessions (15-year exemption, 50% active asset reduction, retirement exemption, rollover relief)
- Personal use assets acquired for less than AUD 10,000
- Compensation and damages for personal injury
- Disposal of a motor vehicle or motorcycle
- Gains on assets acquired before September 20, 1985 (pre-CGT assets)
How Australia Capital Gains compares
Australia’s capital gains tax rate of 23% is the 36th highest of 203 countries TaxAtlas tracks, above the global average of 13.8% and Oceania’s regional average of 4.3%.
