<P> A capital gains tax ( CGT ) was introduced in Australia on 20 September 1985 , one of a number of tax reforms by the Hawke / Keating government . The CGT applied only to assets acquired on or after that date , with gains ( or losses ) on assets owned on that date , called pre-CGT assets , not being subject to a CGT . In calculating the capital gain , the cost of assets held for 1 year or more was indexed by the consumer price index ( CPI ) . This meant the part of a gain due to inflation was not taxed . Indexation was not used if an asset was held for less than 12 months or a sale results in a capital loss . Also , an averaging process was used to calculate the CGT. 20 % of a taxpayer 's net capital gain was included in income to calculate the taxpayer 's average tax rate , and the rate was then applied to all the taxpayer 's gross income ( i.e. , including the capital gain in full ) . So if a large capital gain were to push a taxpayer into a higher tax bracket in the tax year of sale , the brackets was stretched out , allowing the taxpayer to be taxed at their average tax rate . </P>
<P> A capital gains tax ( CGT ) was introduced in Australia on 20 September 1985 , one of a number of tax reforms by the Hawke / Keating government . The CGT applied only to assets acquired on or after that date , with gains ( or losses ) on assets owned on that date , called pre-CGT assets , not being subject to a CGT . In calculating the capital gain , the cost of assets held for 1 year or more was indexed by the consumer price index ( CPI ) . This meant the part of a gain due to inflation was not taxed . Indexation was not used if an asset was held for less than 12 months or a sale results in a capital loss . Also , an averaging process was used to calculate the CGT. 20 % of a taxpayer 's net capital gain was included in income to calculate the taxpayer 's average tax rate , and the rate was then applied to all the taxpayer 's gross income ( i.e. , including the capital gain in full ) . So if a large capital gain were to push a taxpayer into a higher tax bracket in the tax year of sale , the brackets was stretched out , allowing the taxpayer to be taxed at their average tax rate . </P>
when was capital gains tax introduced in australia
when was capital gains tax introduced in australia
20 September 1985
20 September 1985