Disposing of Property – CGT & Reporting

What to know if you’ve disposed of property after 1 July 2025

If you’ve sold, gifted or otherwise disposed of property on or after 1 July 2025, there are a few reporting obligations worth understanding before your tax return is lodged. The ATO has been in touch with taxpayers about these disposals, so here’s a plain-language overview of what it means for you.

What counts as a disposal

A disposal isn’t limited to selling. It also includes gifting property and other similar transactions. If you’ve disposed of property, it’s important to let us know, as it may need to be reported in your return.

Investment property and capital gains tax

An investment property is treated as an asset and is subject to capital gains tax (CGT). Any gains (profits) or losses from a sale or disposal are reported in your tax return. If you record capital losses in the year they occur, they can be used to offset capital gains, both this year and in future years.

Timing matters. A property disposal is reported in the same financial year you enter into the contract, not when settlement occurs.

If the property was your main residence, this needs to be declared, along with your eligibility for the main residence exemption.

Property renovation as a business

Different rules apply if you’re carrying on a business of renovating properties. In that case, your properties are treated as trading stock in the ordinary course of business, your profits are treated as ordinary income, and your losses are deducted in the year they are incurred. These disposals are included in the appropriate section of your tax return.

Keep detailed records for at least five years from the date your return is lodged.

How we can help

We can review your pre-fill information and talk through any property disposal with you. Even where no pre-fill information exists, it’s worth letting us know if you’ve disposed of property, so we can report any capital gain, loss, main residence exemption, other exemption or rollover, or business income relating to the disposal.

Where to get further help

The ATO offers support through several channels, including the Translating and Interpreting Service (13 14 50, 8:00 am to 6:00 pm weekdays), the Indigenous Helpline for First Nations taxpayers (13 10 30), and the National Relay Service at accesshub.gov.au for anyone who is deaf, hard of hearing, or has a speech or communication difficulty. More information is available at ato.gov.au/accessibility.

For a plain-language overview to help avoid common mistakes, you can find the ATO factsheet by searching QC 104431 on the ATO website.