Selling an investment property can deliver substantial wealth, but without planning, capital gains tax can take a big bite out of your payout. Because the gain is added to your assessable income, an unmanaged sale can easily push you into a higher tax bracket.

The good news is there are legitimate ways to reduce it. Resident individuals can access the 50% CGT discount after 12 months, while keeping accurate records can increase your cost base and shrink your taxable gain. The six-year absence rule may keep a former home exempt while it is rented out, capital losses can offset gains, and timing your contract in a lower-income year can also help. Learn more about reduce capital gains tax on investment property before you sign anything, because the contract date generally locks in your tax position.

A smart sale also needs a smart loan setup, whether you plan to release equity, restructure existing loans or refinance before listing. Book a call now with our lending team to make sure your mortgage supports your tax goals.