What is the capital gains tax rate on index funds in Australia?

The headline capital gains tax rate in Australia is 23.5%. Average capital gains tax rate. Allowances, holding periods and tax-advantaged accounts can change what you actually pay.

How much tax would I pay on a $100,000.00 gain in Australia?

At the headline rate of 23.5%, a $100,000.00 gain would attract roughly $23,500.00 in capital gains tax, leaving $76,500.00 before any allowances.

How does Australia compare with the rest of Oceania?

The average headline capital gains rate across Oceania in our dataset is 23.5%, so Australia at 23.5% is in line with the regional average.

Index Fund Taxes in Australia

Investors in Australia face a headline capital gains rate of 23.5% on index funds and ETFs. Average capital gains tax rate.

Headline rate: 23.5%
Tax on a $100,000.00 gain: $23,500.00
Oceania average: 23.5%

What this means for your returns

Tax applies to your gain, not your whole balance. If you invest and your portfolio grows by $100,000.00, a 23.5% rate leaves you with $76,500.00 of that growth before allowances.

Because the tax is usually triggered when you sell, holding for longer defers it and lets the untaxed amount keep compounding. That deferral is one of the structural advantages of buy-and-hold index investing over frequent trading.

Run your own projection with Australia tax applied →

Frequently Asked Questions

Headline statutory rates as of 2025-01-01, collected from national tax authority publications. Rates exclude allowances, exemptions, tax-advantaged accounts, local surcharges and treaty relief, and change frequently. Confirm your position with a tax professional in Australia.