All About Capital Gains Tax on Property

Capital Gains Tax (CGT) on a property refers to the tax that levied on gains incurred from selling, transferring or disposing of assets and investments. In other words, assets that have been sold at a higher price than the original price anywhere across Australia.

If you are an Australian resident for tax purposes, Capital Gain Tax applies to any of your assets. Residents staying abroad make a capital gain or loss if Capital Gain Tax (CGT) levies on an asset which falls under the category of ‘Taxable Australian Property’.

Assets:

A house or a building

A block of land

Intangible Assets (Intangible assets includes contractual rights & goodwill of a business):

Shares that you owned in another company

A unit in a trust

An investment funds

There are exemptions and concessions on certain assets, principle place of residence and land under development.

  • As a prime example for illustration purposes, under the rules of Capital Gains Tax on a property, sales of depreciating assets and shares are not taxable, however, subject to their tax regimes.
  • Disposal of a family house provided that it is your primary residence and that you reside in that house daily. In this case, no Capital Gain Tax is applicable.

The tax law for capital gains can be intriguingly vast and complicated. However, there might be some reliefs and exemptions that are subject to certain situations and conditions, which may be a significant tax saving in one case and tax liability in another.

Capital Gains calculation is one of the most complex areas of accounting. We take immense pride in our tax accounting team with a diverse variety of skills including technical proficiency, regulatory knowledge and standard-setting experience.

We work with business owners and individuals to create innovative strategies to help them attain their financial goals with astute tax saving strategies.

We will take the tedious activities off your plate so you can focus on important business matters that help generate massive profits for you.

So, consult a professional accountant and grasp a basic understanding of the consequence & implications in selling any assets that you think you want to now or in the future.

capital gains tax on property

Capital Gain Tax (CGT) refers to tax that levied on gains incurred from selling, transferring or disposing of assets and investments, in other words, assets that have been sold at a higher price than the original price.

Assets

  • A house or a building
  • A block of land

Intangible Assets (Intangible assets includes contractual rights & goodwill of a business)

  • Shares that you owned in another company
  • A unit in a trust
  • An investment funds

There are exemptions and concessions on certain assets, principle place of residence and land under development.

  • As a prime example for illustration purposes, under the tax rules of Capital Gain Tax, sales of depreciating assets and shares are not taxable, however, subject to their own tax regimes.
  • Disposal of a family house, provided that it is made as your main residence for that you have been living in on a daily basis, in this case, no Capital Gain Tax is applicable when it is sold.

The tax law for capital gains tax can be intriguingly vast and complicated, come reliefs and exemptions are subject to certain situation and conditions, which may be a significant tax savings in one case and tax liability in another.

Capital Gains calculation is one of the most complex areas within accounting, please do come for professional advices and grasp a basic understanding of the consequence & implications in selling any assets that you think you want to now or in the future. As just for taking a precautionary step and measure in protecting yourself and in the meantime opening a potential opportunity for creating a Tax Savings Plan for yourself.

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