Capital gains and dividend tax calculator for Australia

Capital gains are not taxed separately in Australia. The net gain is added to your taxable income. If you held the asset for at least 12 months, only half of the gain is added.

Franked dividends come with franking credits for the company tax already paid. You add the credit to the dividend in your taxable income, then the credit comes off your tax. If the credits are more than your tax, the ATO refunds the rest, and the calculator shows that refund.

Interest is fully taxable. The calculator works out income tax, the low income tax offset and the Medicare levy with and without your investment income and shows each difference.

• You are an Australian resident individual for the whole year. Other income is your taxable income from salary and similar sources, after deductions.
• Tax includes the low income tax offset and the 2 % Medicare levy with the low-income reduction for a single person. The Medicare levy surcharge is not included.
• The 50 % CGT discount applies to assets held for at least 12 months and sold before 1 July 2027. Capital losses, carried-forward losses and the main residence exemption are not modelled.
• From 1 July 2027 the discount is replaced by indexing the cost base and a 30 % minimum tax on gains. That does not change the two years shown here.
• Franking credits are added to taxable income and then come off your tax. Credits above your tax are refunded. The 45-day holding rule is assumed to be met.
• Franking credits are based on a 30 % company tax rate unless you pick 25 % for a base rate entity.
• Income inside super is taxed in the fund and should not be entered here.

How is capital gains tax calculated in Australia?

Your net capital gain is added to your other income and taxed at your marginal rate, plus the Medicare levy. If you held the asset for at least 12 months, the 50 % discount halves the gain first.

What is a franking credit worth?

For a fully franked dividend from a company paying 30 % tax, the credit is 30/70 of the dividend. On a $700 dividend that is $300. You include $1,000 in income and get $300 off your tax.

Can I get franking credits refunded?

Yes. If your franking credits are more than the tax you owe, the excess is refunded when you lodge your return. With only $7,000 of fully franked dividends and no other income, you pay no tax and get the whole $3,000 credit back.

Is the 50 % CGT discount ending?

For gains from 1 July 2027, yes, for most assets. The cost base is indexed for inflation instead, and a 30 % minimum tax applies to the gain. The part of a gain that built up before 1 July 2027 keeps the 50 % discount, and new homes can stay on the discount.

Is the sale of my home subject to CGT?

Usually not. Your main residence is generally exempt. Investment properties and holiday homes are not.

• www.legislation.gov.au/C2004A05138/latest/text
• www.legislation.gov.au/C2026A00049/asmade/text
• www.legislation.gov.au/C2004A03348/latest/text
• www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt/cgt-discount
• www.ato.gov.au/individuals-and-families/investments-and-assets/investing-in-shares/refund-of-franking-credits-for-individuals
• www.ato.gov.au/individuals-and-families/investments-and-assets/investing-in-shares/shares-and-dividends/dividends
• www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents