Article 11 - FABC Accounting

By FABC Accounting
Published On: December 14th, 2025

Keywords

Capital Gains Tax Australia reduce CGT property cost base selling property tax CGT planning

How to Reduce Capital Gains Tax When Selling Property

Many property owners are surprised when their Capital Gains Tax (CGT) turns out much higher than expected after selling a property.

In most cases, the issue isn’t the tax rate — it’s an incomplete cost base calculation.

CGT is not simply “purchase price minus sale price”. Under Australian tax law, many additional expenses can be legitimately included in the cost base, significantly reducing your taxable gain.

Commonly Overlooked Deductible Costs

Real estate agent commission and advertising costs;
Capital improvements such as extensions or structural upgrades (not minor repairs);
Loan discharge fees and professional valuation report costs;
Legal fees and other transaction-related expenses.

Including these costs in your cost base can legally reduce your CGT liability and potentially save you thousands of dollars.

Important Reminders

CGT is a professional calculation, not a rough estimate;
Supporting documentation is essential to claim deductions;
Repairs and capital improvements must be clearly distinguished.

If you are planning to sell or have already sold your property, reviewing your tax position early can help you avoid unnecessary overpayment.

How FABC Accounting Can Help

FABC Accounting specialises in property tax planning and CGT optimisation, including:

Reviewing your cost base calculation for completeness;
Identifying missed deductible expenses;
Providing tailored CGT planning strategies;
Ensuring your property sale is tax-efficient and compliant.

Professional review ensures you pay no more tax than required under Australian tax law.