Whether you’re selling a property, shares, or even a business, the phrase “net proceeds” can make a massive difference to your bottom line. With evolving tax policies and transaction costs in Australia in 2025, understanding exactly what net proceeds are—and how to maximise them—has never been more important. Here’s a deep dive into what Aussies should know right now.
What Are Net Proceeds and Why Do They Matter?
Net proceeds refer to the actual amount you pocket after selling an asset, once all associated costs and deductions are subtracted from the sale price. This is the real figure that ends up in your bank account—not the headline price you see in the contract.
- Gross proceeds: The total sale price before deductions.
- Net proceeds: The sale price minus costs like agent fees, taxes, legal expenses, and outstanding debts on the asset.
Why does this matter? Because the number in your head after a big transaction can be very different from the reality if you don’t factor in all costs. Misunderstandings here can lead to disappointment, poor reinvestment decisions, or even cash flow issues.
How Net Proceeds Are Calculated in 2025
The calculation is straightforward in theory but can become complex in practice, especially with changes in government policy and fluctuating transaction costs. In 2025, here’s what Australians should watch for:
- Sale Price: The agreed value of the asset or investment.
- Agent or Broker Commissions: Real estate agents, stockbrokers, and business brokers typically charge a percentage of the sale price (ranging from 1.5% to 3% for property, and around 0.1–0.3% for shares).
- Legal Fees: Conveyancing and settlement costs, which can be fixed or variable.
- Outstanding Liabilities: Any remaining loans or debts secured against the asset—such as a mortgage or margin loan—must be paid out from the sale proceeds.
- Government Charges: Capital Gains Tax (CGT), stamp duty, and, in 2025, updated land transfer surcharges in some states. The federal government’s latest tweaks to CGT exemptions for main residences are especially relevant.
- Other Adjustments: Repairs, staging costs, or early exit penalties for breaking fixed-term contracts (like some home loans).
Example: If you sell your Melbourne home for $950,000 in 2025, with a $500,000 mortgage, 2% agent commission, $3,000 in legal fees, and a $10,000 capital gain after accounting for the main residence exemption:
- Sale price: $950,000
- Minus agent commission (2%): $19,000
- Minus legal fees: $3,000
- Minus outstanding mortgage: $500,000
- Minus CGT (on $10,000 gain, if applicable): $2,350 (assuming a 23.5% marginal rate)
- Net proceeds: $950,000 – $19,000 – $3,000 – $500,000 – $2,350 = $425,650
Net Proceeds and the 2025 Investment Landscape
With interest rates stabilising and new rules for property investors in several states, Australians are increasingly focused on the “net” outcome of every transaction. Here’s what’s trending in 2025:
- Property Sales: Rising insurance and strata costs mean more deductions from sale price. The Queensland government’s 2025 changes to foreign owner surcharges also affect some vendors.
- Share Transactions: Lower brokerage fees thanks to online platforms mean a slightly bigger slice of net proceeds. But beware of capital gains events triggered by automatic portfolio rebalancing.
- Business Sales: New ATO rules on small business CGT concessions mean more scrutiny of what’s deductible before arriving at net proceeds. Seek advice on eligible expenses and record-keeping.
Ultimately, understanding net proceeds is crucial for everyone from first-home sellers to seasoned investors. It’s the difference between a financial windfall and a cashflow crunch.
How to Maximise Your Net Proceeds
With so many moving parts, how can you keep more of what you earn? Here are practical strategies:
- Shop Around for Service Providers: Compare agent commissions, legal fees, and brokerage rates before locking in contracts.
- Time Your Sale: In 2025, capital gains tax rates and property market cycles are both in flux. Consider your holding period, especially for investment assets.
- Claim Deductions: For property and business, claim eligible improvements, repairs, and transaction costs to reduce taxable gain.
- Pay Down Liabilities: Reducing outstanding loans before sale can mean more money in your pocket, as well as less interest paid overall.
- Stay Informed on Policy Changes: Keep an eye on federal and state government announcements, as tax rules and surcharges continue to evolve.
Ultimately, your net proceeds tell the real story—so don’t settle for a rough estimate. Crunch the numbers and plan ahead for a smoother financial journey.
