Understanding capital gains tax (CGT)

Average customer rating: 4.3/5
Written by James Hurwood
Reviewed by Stephen Zeller
Updated 11 April 2024

Capital gains tax explained

What is capital gains tax?

Do you need to pay capital gains tax on property sales?

The cost of an asset vs its cost base

How capital gains tax is calculated

How capital losses are calculated

What rate is capital gains tax charged at?

Are inherited properties subject to CGT?

Will I pay CGT if I sell my home due to divorce?

Meet our home loans expert, Stephen Zeller

Stephen Zeller
General Manager – Money

Stephen has more than 30 years of experience in the financial services industry and holds a Certificate IV in Finance and Mortgage Broking. He’s also a member of both the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) and the Mortgage and Finance Association of Australia (MFAA).

Stephen leads our team of Home Loan Specialists, and reviews and contributes to Compare the Market’s banking-relating content to ensure it’s as helpful and empowering as possible for our readers.

  1. Australian Taxation Office. What is capital gains tax? Accessed January 2024.
  2. Australian Taxation Office. Eligibility for main residence exemption. Accessed January 2024.
  3. Australian Taxation Office. Guide to capital gains tax 2022 – The discount method. Accessed January 2024.
  4. Australian Taxation Office. Guide to capital gains tax 2022 – The indexation method. Accessed January 2024.
  5. Australian Taxation Office. Guide to capital gains tax 2022 – The ‘other’ method. Accessed January 2024.
  6. Australian Taxation Office. Guide to capital gains tax 2022 – What is the reduced cost base? Accessed January 2024.
  7. Australian Taxation Office. Inherited property and CGT. Accessed January 2024.
  8. Australian Taxation Office. When the relationship breakdown rollover applies. Accessed January 2024.
  9. Australian Taxation Office. Calculating CGT on a rollover asset. Accessed January 2024.