CGT applies to assets you sell or dispose of, except for:

• exempt assets, personal assets such as your home or car
• assets you acquired before CGT started on 20 September 1985.

When you sell an asset that’s subject to capital gains tax (CGT), it’s called a CGT event. This is the point at which you make a capital gain or capital loss.

In this case, CGT is the tax you pay on the gains you make from selling the assets. Capital gains or capital losses are calculated separately from your other income and deductions. Any net capital gain is added to your assessable income. You report net capital gains or capital losses in your income tax return and pay tax on your net capital gains.