Tax Facts - Capital Gains Tax Capital gains tax (CGT) is the tax
you pay on a capital gain. It is not a separate tax, but part of
your income tax. The most usual way to make a capital gain or
loss is to sell assets like real estate, shares or managed fund
investments. Capital gains tax came into effect on 20 September
1985. All assets you have acquired since this date are subject
to the CGT rules including options, rights and business goodwill
(unless specific exclusions apply). If you are an individual,
some assets may be exempt from CGT, including: - Your main
residence - Your car, motorcycle or similar vehicle - Assets for
personal use that you acquired for $10,000 or less There are
other exemptions, rollovers, and concessions that may allow you
to ignore, defer or reduce your capital gain or capital loss. In
some situations using the indexation and discount methods to
calculate your capital gain can also reduce this. RESIDENTS AND
NONRESIDENTS If you are an Australian resident, CGT applies to
your assets