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Capital Gains Tax: What Every Investor Should Know Before June 30
Capital Gains Tax: What Investors Need to Know Before June 30
You might not have sold anything this year. Or maybe you’ve offloaded a property, shares, or some crypto. Either way, now’s the time to look at how your financial moves line up with your tax position.
Because when June 30 hits, your window to act closes. And if there’s an opportunity to reduce what you owe—or position yourself better for next year—you want to take it now, not in hindsight.
This guide breaks down exactly what capital gains tax is, how it works, and what you can do before EOFY to manage it smartly.
What Is Capital Gains?
Let’s keep it simple. Capital gains is the profit you make when you sell something for more than you paid for it. Capital gains tax (CGT) is the tax you pay on that profit.
Example:
- You buy a property for $600,000
- A few years later, you sell it for $800,000
- Your capital gain is $200,000
That gain gets added to your taxable income for the year. And depending on your income level, you could be handing over a significant chunk to the ATO.
When Does CGT Apply?
You trigger a CGT event when you sell a:
- Investment property
- Parcel of shares
- Crypto asset
- Business asset
Even if the gain wasn’t planned (e.g. forced sale, inheritance, divorce), the tax still applies.
The 50% CGT Discount
If you’ve held the asset for more than 12 months, you may be eligible for a 50% CGT discount. That means only half of the gain is taxed. Huge difference.
Example:
- $200,000 gain → discount reduces taxable portion to $100,000
- If you’re on a 37% tax rate → $37,000 payable (instead of $74,000)
Timing really matters. Selling just one day too early could mean missing this entirely.
Offset Losses to Reduce Tax
If you’ve made a gain on one asset but a loss on another, you can use that loss to offset the gain.
Example:
- $200k gain on a property
- $50k loss on a failed crypto investment
- Net taxable capital gain = $150k
Losses can be carried forward if unused, so don’t leave them on the table.
Capital Gains & Retirement Moves
Even if you’re stepping back from work, CGT might still be relevant. Here are some options:
- Downsizer Contribution
If you’re over 55, you can put up to $300k from the sale of your home into super without impacting your caps. While your main residence is usually CGT-free, this helps shift equity into a more tax-friendly environment. - Small Business CGT Concessions
Owned your business for 15+ years and retiring? You may be able to sell it CGT-free. But only if structured correctly—get advice early.
CGT and Your SMSF
SMSFs can be incredibly effective for managing CGT:
- 15% tax on earnings in the accumulation phase
- 10% CGT on long-term investments
- 0% CGT in pension phase (within transfer balance cap)
If you’re planning to sell an asset inside your SMSF, timing it with your transition to retirement can significantly reduce or eliminate the CGT hit.
Common Mistakes Investors Make
Here’s your plan if you want to invest in Sydney
- Selling too early and missing the 12-month CGT discount
- Not recording or claiming carried-forward capital losses
- Failing to factor CGT into settlement budgets
- Selling jointly owned assets without planning income split
- Leaving it until late June to get advice
Capital gains tax isn’t just something for end-of-financial-year panic. It’s one of the most significant taxes investors face—and one of the easiest to reduce with a bit of forward thinking.
The ATO doesn’t care whether you sold by choice or necessity. If you’ve made a gain, they want a slice.
But with smart timing, structure, and advice, you can hold onto more of your return and keep the tax bill under control.
Contact Blue Wealth Property and make smarter moves with your capital gains.
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