Capital Gains Tax is the tax on the profit from the sale of capital assets such as shares or property.
It is important to note that Capital Gains Taxes are only generated when an asset is sold, not while it is retained by an investor. For example, an investor can hold shares that increase in value annually, however, Capital Gains Tax is not incurred until the shares are sold.
Capital gains and losses must be reported in your income tax return. Capital Gains Tax (CGT) is considered by the ATO as part of your income tax, not a separate tax. If you make a capital loss, you can't claim it against your other income but you can use it to reduce a capital gain.