A capital gain or loss is the amount of money you make or lose on the sale of an asset. The capital difference is how much you purchase the asset for versus how much you sell it for.

The amount of CGT you will pay on your shares can vary depending on how long you have held the investment. If you own the asset for less than 12 months, you will have to pay 100% of the capital gain at your income tax rate. If you own the asset for longer than 12 months, you will pay 50% of the capital gain. Capital gains are taxed at the same rate as taxable income — i.e. if you earn $40,000 (32.5% tax bracket) per year and make a capital gain of $60,000, you will pay income tax for $100,000 (37% income tax) and your capital gains will be taxed at 37%.

As capital gains make up your taxable income, the taxation applied may also depend on how much other income you earned, and factors like whether you will be subject to the Medicare levy surcharge (i.e. whether you have a suitable level of private health insurance).

The quickest way to determine if you need to pay CGT on your shares is to see if your shares have made money over the time since you bought them. If you are selling shares at a price below what you paid for them, you have made a loss and you do not need to worry about capital gains tax. If the price of your shares has risen since buying and you are now selling; you will have to pay CGT.

Any asset you have purchased or acquired since capital gains tax was first introduced (20 September 1985) will be subject to capital gains tax, with some exceptions for personal-use assets such as the family home or your personal vehicle.

The figures provided by this calculator on charliedeltagroup.com.au should be used as an estimate only, should not be relied on as true indication of the capital gains tax you may be liable to pay, and do not constitute professional advice. Capital gains tax is complex, and you should seek professional advice in relation to your personal financial circumstances. By using this calculator, you acknowledge and agree to the terms set out in this disclaimer. For more detailed information, please review our full terms and conditions on the website.

This calculator subtracts the purchase price of the asset, including the purchase and sale costs, from the sale price of the asset. If there is a capital gain, the applicable marginal tax rate for the current financial year is applied to the taxable income entered plus the capital gain (including any applicable discount if held for over 12 months).

We have made a number of assumptions when producing the calculations including:

• Residency: We assume you were a permanent resident of Australia for the relevant financial year.

• Purchase date: We assume the asset was purchased after 21 September 1991.

• Ownership: We assume the asset is owned by you as an individual, and is not your owner-occupied home..

Limitation

• This calculator does not guarantee the availability of any financial product or the accuracy of the calculations. Please consult a financial advisor or the relevant product provider to obtain specific advice tailored to your circumstances.

• Chariedeltagroup does not accept any liability for errors or omissions, or for any loss you may suffer as a result of relying on these calculations.