Book a call ↗Tax & Cashflow · Updated Sept 2026
How Does Capital Gains Tax (CGT) Work on Australian Investment Property?
Formula / Rule: Taxable Gain (Held > 12 Months) = (Sale Price − Cost Base) × 50%
Ripehouse Benchmark: $0 CGT Triggered When Refinancing Equity (Without Selling). Check any market live in our Suburb R-Score tool or Street Score tool.
How to Read Capital Gains Tax (CGT) & 50% Discount in Australian Property
| Reading / Tier | Market Interpretation | What It Means for Property Investors |
|---|---|---|
| Refinancing Equity (Holding Asset) | $0 CGT | Equity is released via loan refinance; asset continues compounding |
| Selling After 12+ Months (Individual / Trust) | 50% CGT Discount | Half of net capital gain added to taxable income |
| Selling After 12+ Months (SMSF in Accumulation) | 33.3% CGT Discount | Effective 10% CGT rate inside a complying SMSF |
Why holding and refinancing beats flipping in Australia
Flipping properties in Australia triggers stamp duty on the way in, selling agent commission on the way out, and Capital Gains Tax on the profit. By contrast, buying a high-R-Score asset on a 75–100 scored street, holding it long-term, and refinancing usable equity at 80% LVR lets you harvest capital growth for your next deposit completely free of CGT.
Top Australian Suburbs Measured this Month (Sept 2026)
| Suburb | State & Council (LGA) | R-Score | Median Price | Gross Yield | Vacancy | Drill Down |
|---|---|---|---|---|---|---|
| Docklands (3008) | VIC · Melbourne | 100/100 | $1,152,000 | 16.2% | 7.4% | Suburb · Streets → |
| Alice Springs (0870) | NT · Alice Springs | 100/100 | $355,000 | 15.4% | 2.1% | Suburb · Streets → |
| Weyba Downs (4562) | QLD · Sunshine Coast | 100/100 | $1,001,000 | 15.1% | 11.1% | Suburb · Streets → |
| Goodmans Ford (2575) | NSW · Upper Lachlan Shire | 100/100 | $380,000 | 14.9% | 25% | Suburb · Streets → |
| Bunyan (2630) | NSW · Snowy Monaro Regional | 100/100 | $380,000 | 14.6% | 0% | Suburb · Streets → |
| Knowsley (3523) | VIC · Greater Bendigo | 100/100 | $540,000 | 10.6% | 12.5% | Suburb · Streets → |
| Mia Mia (3444) | VIC · Greater Bendigo | 100/100 | $250,000 | 10.4% | 11.1% | Suburb · Streets → |
| Myalup (6220) | WA · Harvey | 100/100 | $435,000 | 10.2% | 5% | Suburb · Streets → |
Apply the Data to Your Portfolio
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Keep Exploring the Glossary
Gross Rental Yield
Rental Vacancy Rate
Ripehouse Suburb R-Score
Ripehouse Street Score
Days on Market (DOM)
Owner-Occupier Ratio
Capital Gains Tax (CGT) & 50% Discount FAQs
Frequently Asked Questions: Capital Gains Tax (CGT) & 50% Discount
How Does Capital Gains Tax (CGT) Work on Australian Investment Property?
Capital Gains Tax (CGT) is the tax payable on the net profit made when you sell an investment property for more than its cost base (purchase price plus acquisition costs such as stamp duty, legal fees, buyer’s agent fees, and capital improvements, minus claimed building depreciation). In Australia, CGT is not a separate tax rate; the net capital gain is added to your taxable income in the financial year you sign the sale contract. Individual and trust investors who hold an investment property for more than 12 months generally receive a 50% CGT discount (33.3% inside a complying superannuation fund / SMSF).
How is Capital Gains Tax (CGT) & 50% Discount calculated or measured in Australia?
Capital Gains Tax (CGT) & 50% Discount is measured using the formula: Taxable Gain (Held > 12 Months) = (Sale Price − Cost Base) × 50%. Ripehouse Advisory’s target benchmark band is: $0 CGT Triggered When Refinancing Equity (Without Selling).
How can I check Capital Gains Tax (CGT) & 50% Discount for any Australian suburb or street?
You can inspect live monthly R-Scores, median prices, weekly rents, gross yields, vacancy rates, and ABS SA1 Street Scores across 15,000+ suburbs and 518,400+ streets for free at ripehouseadvisory.com.au/suburbs and /streets.