Capital Gains Tax (CGT) is a key element of the Australian tax system, impacting both individuals and businesses when selling assets like property, shares, cryptocurrency, and collectibles. Understanding CGT is vital for effective financial planning and tax compliance. This guide covers the basics of CGT, calculation methods, exemptions, and strategies for managing CGT liabilities. CGT is calculated by subtracting the cost base from the capital proceeds of an asset sale, with potential discounts available for assets held over 12 months. Key exemptions include the sale of your primary residence, personal use assets under $10,000, and most motor vehicles. Small businesses can benefit from additional CGT concessions. Effective strategies to manage CGT include timing asset sales, utilizing capital losses, holding assets for over 12 months to receive discounts, and contributing proceeds to superannuation. Understanding these aspects helps optimize financial decisions and ensure compliance with tax obligations.