How is capital gains tax calculated?

In Australia, the Capital Gains Tax (CGT) on property is calculated as follows:

1. Determine the capital gain
   The capital gain is calculated by subtracting the original purchase price plus any associated costs, from the sale price of the property.
2. Adjust for any CGT discounts
   Eligible taxpayers may be entitled to a CGT discount of 50% on their capital gains if they have held the property for more than 12 months.
3. Include the capital gain in taxable income
   The capital gain is reported in your taxable income for the financial year in which the property was sold.
4. Pay tax on the capital gain
   The tax payable on the capital gain is calculated based on the taxpayer's marginal tax rate. The CGT rate in Australia is currently the same as the individual's marginal tax rate, up to a maximum of 47%.