Capital gains tax (CGT)

Capital gains are profits that a fund, or an individual, makes on the sale of an asset. According to the Tax Office, “Generally, your capital gain is the difference between your asset’s cost base (what you paid for it) and your capital proceeds (what you received for it). You can also make a capital gain if a managed fund or other unit trust distributes a capital gain to you.”

Capital gains tax (CGT) is a tax on the profits that a fund, or an individual, makes on the sale of an asset. According to the Tax Office, “Capital gains tax (CGT) refers to the income tax you pay on any net capital gain you make and include on your annual income tax return. For example, when you sell (or otherwise dispose of) an asset as part of a CGT event, you are subject to CGT.”