Capital Gains Tax Brisbane

Total Business Partners, a trusted accounting firm in Brisbane, can simplify your Capital Gains Tax (CGT) process. Managing CGT obligations can be time-consuming and costly, but our experts at Total Business Partners can provide valuable advice and strategies to minimise your CGT liability. Utilising legal methods such as offsets and discounts, we can help reduce your CGT liability effectively.

Please visit our pages for capital gains tax in Sunshine Coast, North Lakes and Redcliffe.

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What is Capital Gains Tax (CGT)?

Capital gains tax (CGT) is a tax imposed on the profit or net capital gain earned from selling assets such as property, businesses, or shares. It is reported on your income tax return and is considered part of your overall income tax rather than a separate tax.

In Australia, the CGT amount is not fixed. Businesses pay up to 30% tax on capital gains, individuals pay their applicable income tax rate plus a 50% CGT discount for assets held over a year, and self-managed super funds pay a 15% tax with a 33.3% discount for assets held over a year.

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How can you avoid or reduce CGT?

There are several ways to reduce your CGT:

  • Individuals can benefit from a tax break by holding an asset for more than 12 months.
  • Capital gains can be offset by capital losses.
  • For rental properties, CGT is applicable only from the point of valuation, so having your property revalued when renting it out can help.
  • Small businesses can take advantage of CGT concessions and exemptions.
  • Increasing your asset’s cost base can reduce the capital gains and, consequently, the tax amount.

How can you calculate CGT?

The Australian Taxation Office (ATO) provides a CGT calculator that helps determine the CGT owed. It can also save CGT records for future reference.

Does CGT differ between states?

CGT rates and rules are consistent throughout Australia, regardless of location.

Finding high-quality advice for Capital Gains Tax in Brisbane.

Managing Capital Gains Tax (CGT) can be challenging, especially when it comes to property and business sales. Proper planning is crucial to avoid higher tax liability and unnecessary costs. Seeking advice from a qualified accountant with expertise in CGT is essential. They can guide you through the process, help you understand the regulations, identify available exemptions and deductions, and minimise your tax liability. Brisbane has reputable accounting firms specialising in CGT, providing personalised and professional advice for optimal outcomes.

Expertise: Look for a tax expert knowledgeable about CGT regulations in Brisbane.

Qualifications: Ensure the tax professional holds appropriate qualifications, such as being a Certified Practicing Accountant (CPA), to provide CGT advice.

Experience: Choose a tax professional experienced in your industry to understand industry-specific tax rules related to CGT.

Communication: A good tax professional should explain CGT regulations in simple terms and be available for any queries.

Costs: Inquire about upfront fees for CGT advice to avoid surprises.

Capital Gains Tax for property and businesses in Brisbane.

If you plan to sell a business or property, understanding the impact of capital gains tax (CGT) is crucial. CGT is a tax on the profit generated from the sale of assets, including businesses and properties. In Australia, CGT applies to various assets such as real estate and shares.

When selling a business, you may be subject to CGT on the capital gain from the sale. However, there are strategies to minimise your tax liability, such as utilizing small business CGT concessions, which can potentially eliminate or reduce the CGT payment based on specific eligibility criteria.

Understanding tax obligations for business and property sales.

In contrast, the CGT rules differ when selling a property. If the property is not your primary residence, you might be liable for CGT on the capital gain. Fortunately, there are exemptions and deductions available to decrease your CGT liability. For instance, owning the property for over 12 months could make you eligible for a 50% CGT discount.

To navigate the complexities and minimise tax liability, it’s crucial to seek guidance from a qualified and experienced accountant. Total Business Partners can assist you in understanding the implications of CGT, leveraging available exemptions and concessions, and structuring your sale in a tax-efficient manner.

Always plan your property or business sale to reduce CGT.

Failure to properly plan your property or business sale can lead to higher Capital Gains Tax (CGT) payments in Australia. CGT is calculated based on the profit derived from the sale, and without adequate planning, the tax liability can be substantial.

Neglecting CGT considerations when selling a property or business may result in missed opportunities for exemptions and deductions, which significantly reduce your tax liability. Collaborating with an experienced accountant is essential to guide you through the process and make informed decisions that minimise your CGT burden. Effective planning not only saves money in the long term but also ensures compliance with relevant tax laws and regulations.

Capital Gains Tax FAQs

What assets are subject to CGT?

Assets that require payment of capital gains tax (CGT) include:

  • Shares
  • Cryptocurrencies
  • Investment properties
  • Business vehicles and equipment
  • Commercial properties
Which assets are exempt from CGT?

There are certain assets that are exempt from capital gains tax (CGT), such as:

  • Assets acquired before 20th September 1985
  • Main residence
  • Personal vehicles
  • Depreciating assets in an investment property
How can a tax professional help me?
Consulting a tax professional can provide valuable assistance in reducing CGT liability within legal boundaries. While it is illegal to completely avoid paying taxes, a tax professional can help you fulfill your tax obligations and optimise your financial situation.
What is the 6-year rule for capital gains?
The 6-year rule for capital gains refers to the timeframe in which an individual can sell their former primary residence without incurring capital gains tax (CGT). It allows individuals to treat their former primary residence as their main residence for up to six years after moving out, for CGT calculations.
By selling within six years, you may qualify for a full or partial CGT exemption. It’s advisable to consult a professional to understand how the 6-year rule applies to your specific situation.
How do I calculate capital gains on property sale?
Calculating capital gains on property sales can be complex, involving factors like purchase price, improvements, and sale price. Typically, you subtract the property’s original cost (including associated expenses) and improvements from the sale price to determine the capital gain.
The resulting figure may be subject to capital gains tax. It’s recommended to consult a qualified accountant or tax advisor for accurate calculations and compliance with tax laws.
What is the CGT on $200,000?
The capital gains tax (CGT) on $200,000 varies based on factors like the asset type, ownership duration, and cost base. Generally, CGT is calculated by deducting the cost base from the sale price and applying the applicable tax rate.
For individuals, the CGT rate depends on their income and ranges from 0% to 45%. If the asset was held for over 12 months, a CGT discount may apply. Consult a tax professional for a more precise estimate of CGT on a specific asset sale.
How can I legally avoid CGT?
There are legal methods to reduce or avoid capital gains tax. One approach is to utilise exemptions and concessions available for CGT. For example, assets held for more than 12 months may qualify for a 50% CGT discount.
Other strategies include using tax-deferred investment options like superannuation or investing in assets exempt from CGT, such as primary residences or certain small business assets. Consult a tax professional for personalised advice based on your circumstances.
At what age is CGT no longer payable?
There isn’t a specific age at which capital gains tax (CGT) is no longer payable. However, selling an asset owned for more than 12 months may qualify for a 50% capital gains tax discount. Additionally, leaving assets to a spouse or charity after passing away can defer or eliminate CGT.
Tax laws and exemptions can change, so it’s best to consult a qualified tax accountant or financial advisor to determine the most suitable course of action.

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At Total Business Partners, our motivation comes from seeing our clients succeed. We strive to deliver the highest level of service and are Xero certified accountants with expertise in structural business planning and financial management. Our comprehensive services are offered throughout Brisbane, including North Lakes, as well as across the Sunshine Coast.

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