Capital gains tax
CGT
Income tax applied to a net capital gain when a CGT event happens, such as selling an investment property.
What CGT means
CGT is not a separate tax. A capital gain or loss feeds into the income-tax calculation after the relevant cost base, losses, exemptions and concessions are applied.
Why it matters
The after-tax sale result—not just the sale price—determines how much capital is available for debt reduction or the next investment.
Timing changes the answer
For individuals and trusts, enacted reforms change residential CGT mechanics for events on or after 1 July 2027, including transition, indexation and minimum-tax rules. The result depends on acquisition timing, residency, property use and any applicable dwelling exemption.
A definition cannot see your position. Heyward can.
Start with: “Estimate my after-tax sale position and show every assumption used.”
Sources
Primary & official where available- Australian Taxation Office What is capital gains tax?
- Federal Register of Legislation Treasury Laws Amendment (Tax Reform No. 1) Act 2026
General educational information only. It does not account for your objectives, financial situation, legal position or tax circumstances.