FiscalFox editorial team · Product lead: Grant Sloane · Updated
Calculate Australian CGTKeep losses separate from deductions
Compare proceeds with the reduced cost base to calculate a capital loss. It is not a deduction against employment income. Unused net capital losses carry forward for later capital gains, so preserve the original loss calculation.
Choose which gains the losses reduce
For sales through 30 June 2027, reducing gains that cannot use the discount first will generally produce a lower net capital gain. Current-year losses come before brought-forward losses. Only discount the remaining eligible gain.
Reconcile the next year’s opening loss
Keep the closing net capital loss balance with your return and use that balance as the following year’s starting record. Do not re-enter losses already used against earlier gains. From 2027–28, use the reform calculation rather than reusing this example’s discount method.
Sources: Treasury Laws Amendment (Tax Reform No. 1) Act 2026
Worked example: mixed gains and two loss balances
Synthetic 2025–26 resident-individual example. Apply losses to the non-discount gain first.
| Calculation | AUD or result |
|---|---|
| Non-discount capital gain | $3,000 |
| Discount-eligible capital gain | $10,000 |
| Current-year capital losses | $2,000 |
| Prior-year losses used | $2,000 |
| Discountable gain remaining | $9,000 |
| Net capital gain | $4,500 |
| Unused losses carried forward | $0 |
Questions and answers
Can a capital loss reduce dividend income?
Capital losses generally offset capital gains. They do not reduce dividend or salary income.
Do I halve a capital loss on shares held over a year?
No. The 50% discount applies to eligible gains, not capital losses.
Official sources
Sources reviewed . Export steps describe FiscalFox’s supported file. Broker help links explain the available reports; menu names can vary by account and platform.
ATO: Using capital losses to reduce capital gains