This tool is a calculator only. It projects estimated capital gains tax outcomes and investment income figures based on user-defined assumptions — such as CPI inflation rates, annual growth rates, holding periods and marginal tax rates.
This calculator does not:
· Recommend or endorse any particular investment structure, financial product or tax strategy
· Account for your individual financial circumstances, objectives or risk profile
· Constitute financial, taxation, accounting or legal advice of any kind
All outputs are illustrative projections based on the inputs and assumptions you provide. Tax laws, rates and thresholds change over time and may differ from those applied here. Actual outcomes will vary.
Before making any financial, investment or tax-related decision, you should obtain independent advice from a qualified financial adviser, accountant and/or solicitor who can assess your specific circumstances.
Australian Tax Structure Calculator · 2025–26 rates
Compare CGT and investment income outcomes across company, trust, and individual structures · 2025–26 tax rates
| Taxpayer | Other income | Taxable gain | Tax on gain ($) | Effective rate on gain | Net after-tax gain | vs Company (net proceeds) |
|---|
Assumptions & methodology: The comparison is the net after-tax gain — what the investor retains after CGT (nominal gain minus tax paid). Company: pays 30% tax on the full nominal gain; no CGT discount applies. This assumes the company has no prior-year losses or amounts previously taxed under the 50% CGT discount that would otherwise shelter or reduce the gain — in other words, the full nominal gain is assessed at the corporate rate. Individual: pays marginal tax (subject to a 30% floor) on the CPI-indexed real gain only. Individual tax uses 2025–26 Australian resident marginal rates (0%, 16%, 30%, 37%, 45%) plus 2% Medicare levy. The real gain is stacked on top of other income to determine the marginal rate for each dollar. The Low Income Tax Offset (LITO) is included: maximum $700 for incomes up to $37,500, reducing at 5 cents per dollar between $37,500 and $45,000 (to $325), then at 1.5 cents per dollar between $45,000 and $66,667, reaching zero above $66,667.
| Structure / Recipient | Other income | Gross income assessed | Net tax payable | Net investment income after tax | vs Company |
|---|
Individual beneficiary assumptions: A discretionary trust distributes its gross investment income directly to individual beneficiaries. The trust itself pays no tax — income is assessed in the hands of each beneficiary at their marginal rate, stacked on top of any other income they earn. Company assumptions: The company pays corporate tax at the nominated rate on gross income. This table reflects the tax position at the entity level — the net amount retained by the company after tax, available for reinvestment. Any subsequent dividend distribution to shareholders would attract additional personal tax (offset by franking credits) and is not modelled here. Reinvestment chart: Shows the compounded value of the after-tax income if reinvested at the nominated annual return rate over the selected number of years. The starting point for each line is the net investment income after tax. This illustrates the long-run advantage of a lower initial tax burden, as a higher after-tax amount compounds more quickly over time. Individual tax uses 2025–26 Australian resident marginal rates (0%, 16%, 30%, 37%, 45%) plus 2% Medicare levy. The Low Income Tax Offset (LITO) is included: maximum $700 for incomes up to $37,500, reducing at 5 cents per dollar between $37,500 and $45,000 (to $325), then at 1.5 cents per dollar between $45,000 and $66,667, reaching zero above $66,667. Note that LITO is a non-refundable offset — it can reduce income tax to zero but cannot generate a refund, and it does not reduce the Medicare levy.
| Taxpayer / Method | Other income | Taxable gain | Tax on gain | Effective rate on gain | Net after-tax gain (nominal gain − tax) |
vs Company | Indexation vs 50% Discount |
|---|
Methodology: CPI figures are quarterly ABS all-groups weighted average of eight capital cities, sourced from rateinflation.com. The indexed cost base = purchase price × (CPI at sale ÷ CPI at purchase). The real gain = sale price − indexed cost base. Individuals pay 2025–26 marginal rates plus 2% Medicare levy on the real gain (subject to the 30% minimum floor). Companies pay 30% on the full nominal gain. Where the 50% discount toggle is on, the discount gain = nominal gain × 50%, taxed at each individual's marginal rate with no 30% floor (the discount method does not carry a minimum rate). LITO: max $700 up to $37,500; tapers at 5c/$ to $45,000 (→ $325), then 1.5c/$ to $66,667 (→ $0).