ATO Capital Gains Tax (CGT) Guidelines
Every official resource for ATO CGT guidelines by topic, summarised, with direct links to the source. No hunting through ato.gov.au required.
🚨 ATO Notice: 2026–27 Budget CGT Reform Not Yet Law
On 12 May 2026, the Government announced CGT reforms replacing the 50% discount with cost-base indexation and a 30% minimum tax from 1 July 2027. The ATO has confirmed: this is not yet law. Current 2025–26 rules still apply to all transactions today. Assets purchased on or before 12 May 2026 are grandfathered for gains accrued before 1 July 2027. The official ATO page is at ato.gov.au — CGT Reform.
Core ATO CGT Guidelines
These are the core ATO CGT Guidelines listed below:
Capital Gains Tax — ATO Main Page
The ATO’s central hub for all CGT information. Covers what CGT is, which assets it applies to, how to calculate it, and how to report it in your tax return. The best starting point for anyone new to CGT obligations.
Guide to Capital Gains Tax 2025
The ATO’s comprehensive CGT guide for individuals and entities. Covers CGT events, cost base, discounts, exemptions, record keeping and worksheets. Detailed but authoritative — use it to check specific rules.
Personal Investors Guide to CGT 2026
Specifically for individual investors who sold shares, units or received managed fund capital gain distributions in 2025–26. Simpler than the full CGT guide. Best for most individual investors completing a tax return.
Tax Return Question 18: Capital Gains 2026
The ATO’s official instructions for completing Question 18 (Capital Gains) in your 2025–26 supplementary tax return. Includes worked examples, step-by-step worksheets, and codes for exemptions. Exactly what you need at tax time.
CGT Reform Resources
The latest reform which may change existing ATO CGT Guidelines
ATO: CGT Reform & Negative Gearing Changes
The official ATO page on the May 2026 Budget CGT announcements. Explains what’s changing (50% discount → indexation + 30% minimum tax from 1 July 2027), the grandfathering rules for existing assets, and what’s NOT yet law. Updated as legislation progresses.
Federal Budget 2026–27 — Treasury Papers
Budget Paper No. 2 (Budget Measures) contains the original CGT reform announcement. The Treasury’s Budget Papers are the primary source for understanding exactly what was announced, before ATO implementation guidance follows.
Summary of 2026 Budget CGT Changes: From 1 July 2027, the 50% CGT discount is replaced by cost-base indexation (your purchase price is adjusted for inflation — only real gains above inflation are taxed) plus a 30% minimum tax. Assets held before 12 May 2026 are grandfathered — existing gains keep the 50% discount for the portion earned before 1 July 2027. Superannuation funds are not affected. This is announced policy, not yet legislated. You can also read this article for comprehensive information.
Official ATO CGT Guideline’s References
Every reference listed below that mention in ATO CGT Guidelines
CGT on Real Estate & Property
Covers CGT for investment property, rental property, land, improvements and the main residence exemption. Includes the 6-year absence rule, foreign residents, and how depreciation affects your CGT position. Essential reading for property investors.
CGT on Shares, Units & Managed Fund
ATO’s guide to CGT on ASX shares, ETF units, managed funds and similar investments. Covers parcel identification, the cost base for DRP shares, AMIT adjustments for ETFs, and how capital gains distributions from managed funds are treated.
ATO Crypto Asset Investments
The definitive ATO guidance on how cryptocurrency is taxed in Australia. Covers CGT events (trading, swapping, spending), ordinary income events (staking, mining, airdrops), record-keeping requirements, and the data-matching program covering 1.2M+ Australians.
SMSF and Capital Gains Tax
ATO CGT Guidelines on how CGT works inside SMSFs. Covers the one-third CGT discount for the accumulation phase (effective 10% tax on long-term gains), full CGT exemption in pension phase, and the segregation vs actuarial certificate methods for mixed-phase funds.
CGT on Gifts & Inherited Assets
How CGT applies when you inherit property or shares including the stepped-up cost base rules, the date of death valuation requirement, and the main residence exemption for inherited homes. Also covers gifted assets and how cost base transfers work.
Small Business CGT Concessions
For business owners selling a business or its active assets. Covers the four main concessions: 15-year exemption (zero CGT), 50% active asset reduction, retirement exemption (up to $500k), and small business rollover. Eligibility requires turnover under $2M or net CGT assets under $6M.
Latest CGT Rates
Annual Income | Marginal Tax Rate | Effective Rate (50% Discount) | Tax on $30k Gain | Tax on $30k Gain (Discounted) |
|---|---|---|---|---|
$0 – $18,200 | 0% | 0% | $0 | 0% |
$18,201 – $45,000 | 19% | 9.5% | $5,700 | $2,850 |
$45,001 – $135,000 | 32.5% | 16.25% | $9,750 | $4,875 ← most investors |
$135,001 – $190,000 | 37% | 18.5% | $11,100 | $5,550 |
$190,001 + | 45% | 22.5% | $13,500 | $6,750 |
+ Medicare Levy | +2% on taxable gain | +$600 | +$300 |
Important: These rates apply to the 2025–26 financial year under current law. The 50% discount applies only when the asset was held for more than 12 months. From 1 July 2027 (if legislated), the discount structure changes see the 2026 Budget section above.
ATO CGT Guidelines Reference Summary
Here we’ve summarised ATO CGT Guidelines:
Using Capital Losses to Reduce Capital Gains
ATO’s official guidance on capital losses — how to apply them, carry-forward rules (no time limit), the mandatory ordering (losses before discount), collectable loss restrictions, and how to report losses in your tax return. Essential if you’ve had any investment losses.
Main Residence Exemption — 6-Year Absence Rule
The ATO’s official guidance on treating a former home as your main residence for CGT purposes for up to 6 years after moving out. Covers conditions, the reset on returning, interaction with rental deductions, and the one-main-residence-at-a-time rule.
Keeping Records for CGT
What records the ATO requires you to keep, for how long, and in what format. CGT records must generally be kept for 5 years after the gain or loss is applied. Longer if losses are carried forward. Critical for anyone who has sold or plans to sell investments.
CGT Discount — Eligibility Rules
Who qualifies for the 50% CGT discount(According to ATO CGT Guidelines), what assets are eligible, how the 12-month holding period is calculated (day after acquisition to day before disposal), and specific rules for foreign residents, trusts and deceased estates.
Key Dates Timeline
How ATO CGT Guidelines changed throughout the time:
20 September 1985
CGT Introduced in Australia
Capital Gains Tax was introduced for assets acquired on or after 20 September 1985. Assets acquired before this date (“pre-CGT assets”) are generally exempt from CGT, regardless of when they’re sold. As already mention in ATO CGT Guidelines.
21 September 1999
50% CGT Discount Introduced
The Hawke Government’s indexation method was replaced by the Ralph Review’s simpler 50% discount for assets held over 12 months by individuals and trusts. This is the system that has applied for the past 25+ years and remains current law until 1 July 2027.
8 May 2012
Foreign Residents Lose 50% Discount
From this date, foreign residents can no longer access the 50% CGT discount for most assets. Only taxable Australian property remains eligible for foreign residents.
2014–15 onwards
ATO Crypto Data Matching Program
The ATO began collecting transaction data from Australian cryptocurrency exchanges. Records from 2014–15 onwards are collected annually. An estimated 1.2 million Australians are in the program’s scope.
12 May 2026
2026–27 Budget: 50% Discount Replacement Announced
The Federal Budget announced replacing the 50% discount with cost-base indexation + 30% minimum tax from 1 July 2027. Assets purchased on or before this date are grandfathered. See ATO page →
1 July 2027 (Proposed)
New CGT Indexation System Begins (If Legislated)
New rules proposed to take effect. Gains accruing from this date on new assets use cost-base indexation. Transitional rules apply to existing assets purchased before 12 May 2026. Not yet law — pending Parliamentary approval.