Who can claim
This deduction is available to individuals and companies.
- A CGT event happened during the income year, including a sale, transfer, gift, disposal, loss or destruction of an asset.
- The asset or event is within Australia's capital-gains-tax rules.
What you cannot claim
- Do not treat the sale proceeds or capital gain as a deduction.
- A capital loss can reduce capital gains only. It cannot reduce salary, wages, rental income or ordinary business income.
- A transfer below market value to a related party may use market value rather than the amount received.
How the amount is worked out
Identify the CGT event and event date, then compare capital proceeds with the cost base or reduced cost base. Apply current-year capital losses, prior-year net capital losses, any eligible CGT discount and any relevant concession in the required order.
Records the ATO expects
- Acquisition contract and settlement statement
- Purchase and disposal incidental costs
- Capital improvements and ownership costs
- Disposal contract, proceeds and market valuation where relevant
Before you rely on this rule
This is a tax event to review, not a deductible expense. The workspace keeps it outside the calculated deduction total.
Where this rule comes from
Primary source: Income Tax Assessment Act 1997 Parts 3-1 and 3-3 (Compilation 266 in force 1 July 2026). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.
Supporting sources:
- ATO Guide to capital gains tax 2026 (Guide to capital gains tax 2026)