Legitimate ways to pay less CGT
- Hold for at least 12 months. The 50% discount halves the taxable gain. Check the contract date, not settlement. 12-month rule.
- Time the contract date. A sale signed on 1 July falls in the next financial year. If your income will be lower next year (career break, retirement), the same gain may be taxed at a lower rate.
- Claim your full cost base. Stamp duty, legal fees, agent’s commission, improvements and non-deductible holding costs all reduce the gain. Cost base checklist.
- Use capital losses. Losses from other assets offset gains in the same year, and unused losses carry forward indefinitely. Apply them to non-discount gains first. Losses guide.
- Use the main residence exemption and 6-year rule. Choosing which property to treat as your main residence can matter when you own more than one. Main residence rules.
- Make a concessional super contribution. A deductible personal contribution reduces taxable income in the year of the gain, within your cap (watch Division 293 if the gain takes your income over $250,000).
- Small business concessions. If the asset is an active business asset, the 15-year exemption, 50% active asset reduction, retirement exemption or rollover can reduce the gain substantially. Business CGT.
- Spread sales across years. Selling share parcels over two financial years can keep more of the gain in lower brackets.
Traps to avoid
- Wash sales – selling to crystallise a loss and buying back the same asset soon after. The ATO may deny the loss (TR 2008/1).
- Settlement vs contract confusion – the contract date decides the year and the 12-month test.
- Double-counting deductions – costs you claimed as deductions can’t also go in the cost base.
- Transfers to family – gifting or selling below market value is treated as a sale at market value.
Planning for 1 July 2027
Gains accrued to 30 June 2027 keep the discount even if you sell later, so there is no automatic need to sell beforehand. What matters is the record of the asset’s value at 30 June 2027 (market value or the apportionment method), and – for lower-income years after 2027 – the 30% minimum tax. Model both with our calculator and get personal advice before acting.
Frequently asked questions
How can I avoid paying capital gains tax in Australia?
You can legally reduce or eliminate CGT through exemptions (main residence, small business 15-year exemption), the discount, timing, and losses. Arrangements entered into mainly to avoid tax can be caught by the general anti-avoidance rules.
Can I reduce CGT with super contributions?
A personal deductible (concessional) super contribution in the year of the gain reduces your taxable income. You must give your fund a notice of intent to claim a deduction. Contributions are generally taxed at 15% in the fund – or 30% under Division 293 if your income plus concessional contributions exceeds $250,000, and a large capital gain counts towards that. They count towards the concessional cap ($32,500 from 2026–27; $30,000 in 2024–25 and 2025–26), and unused cap amounts from the previous 5 years can be carried forward if your total super balance was under $500,000 at the previous 30 June. Check your cap before contributing.
Does selling in a low-income year reduce CGT?
Yes – because the gain is taxed at your marginal rate. After 1 July 2027, though, the 30% minimum tax limits this benefit for gains accruing from that date unless you receive income support.
References
Every figure on this page was checked against these primary sources on 16 October 2026.
General information only – not financial or tax advice. See our disclaimer. Spotted an error? Email [email protected].