Timing a property sale for CGT purposes can save you a substantial amount. [cite: 471] Sellers can lose money simply by settling in the wrong financial year. [cite: 472]
The Financial Year Matters
Capital gains are included in the financial year you exchange contracts — not when you settle. [cite: 475] If you exchange on 15 June 2026 and settle on 15 July 2026, the gain falls in the 2025-26 financial year. [cite: 476, 477]
When to Sell for the Best Outcome
- Sell in a low income year — If retiring or changing roles, selling when your salary is lower reduces the marginal tax rate. [cite: 479]
- Avoid other large income events — Stagger property sales and bonuses across financial years. [cite: 480, 481]
- Cross the 12-month threshold — The 50% discount is worth waiting for in virtually all circumstances. [cite: 482, 483]
Talk to KR Peters. If you’re thinking about selling and CGT timing is a consideration, start that conversation with us early. [cite: 488, 490]
References: 1. Real Estate Calc. [cite: 493] 2. Australian Taxation Office. [cite: 494] 3. Mortgage and Finance Advisory. [cite: 495] 4. KR Peters Real Estate. [cite: 496]