Capital Gains Tax (CGT) on property assets is a tax on the profit made from the sale of investment real estate. Most personal homes (principal place of residence) are exempt from this, however other real estate including investment properties, vacant land, business premises and holiday homes are subject to CGT.
The tax applies to the difference between the purchase price of the property and the selling price, after accounting for various expenses such as closing costs and improvements made to the property.
e.g. an investment property was bought for $500,000 and was then sold for $750,000. Capital Gains Tax is due on the $250,000 profit made.