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Financial Glossary — Capital Gains Tax Calculator

Clear definitions of key Australian Australian capital gains tax on property, shares and crypto terms. Use this glossary alongside our calculator to understand your results.

💡 How to use this glossary: These definitions relate directly to the terms used in our free Capital Gains Tax Calculator. Click any letter below to jump to that section, or use Ctrl+F / Cmd+F to search the page.
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5 C D I M P R S W

5

50% CGT Discount

A reduction available to Australian resident individuals and trusts who hold an asset for more than 12 months. Only 50% of the net capital gain is taxable.

C

CGT Event

An action that triggers the capital gains tax provisions — typically selling or disposing of an asset.

Capital Gain

The profit made from selling a capital asset for more than its cost base. Added to assessable income and taxed at your marginal rate.

Capital Loss

A loss made when selling a capital asset for less than its cost base. Can only offset capital gains — not ordinary income.

Cost Base

The total amount you paid for an asset including purchase price, acquisition costs (stamp duty, legal fees) and improvement costs.

D

Division 43 Deductions

Capital works deductions claimed on a building or structural improvement during ownership. Reduce the cost base of the asset for CGT purposes.

I

Indexation Method

An alternative CGT calculation method for assets acquired before September 1999 that adjusts the cost base for inflation.

M

Main Residence Exemption

A complete exemption from CGT for your principal place of residence — your primary home.

P

PPSR Check

A search of the Personal Property Securities Register to verify a vehicle has no existing finance. Available at ppsr.gov.au for $2.

R

Reduced Cost Base

Similar to cost base but used to calculate capital losses. Generally excludes some ownership costs like Div 43 deductions.

Residual Capital Gains

Capital gains remaining after applying capital losses, exemptions and discounts.

S

Six-Year Absence Rule

Allows a former main residence to be treated as a principal place of residence for up to 6 years while renting it out, maintaining the CGT exemption.

W

Wash Sale

Selling an asset at a loss then repurchasing it shortly after. The ATO's anti-avoidance provisions may apply if the dominant purpose is to create a tax loss.

Use Our Free Calculator

Now that you understand the terminology, use our free Capital Gains Tax Calculator to calculate your results. All terms above appear throughout the calculator and our guides.

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