How the discount works
When you have a capital gain on an asset you owned for at least 12 months, and you’re an Australian resident individual, you reduce the gain by 50% before adding it to your taxable income. The ATO’s example: Justin owns land for 18 months and makes a $10,000 profit – he declares a capital gain of $5,000.
The 12-month rule
You must own the asset for at least 12 months before the CGT event, excluding the day you acquired it and the day of the event. For sales under a contract, the event is the contract date – not settlement.
- Inherited assets: the deceased’s ownership period can count (if they acquired the asset on or after 20 September 1985).
- Relationship breakdown rollovers: your spouse’s ownership counts.
- Home first used to produce income: the 12 months restart from when you’re treated as acquiring it at market value.
Close to the line? Our calculator shows how much you would save by signing on or after the 12-month date.
Who gets which discount
| Owner | Discount |
|---|---|
| Australian resident individual | 50% |
| Trust (flows to resident individual beneficiaries) | 50% |
| Complying super fund | 33⅓% |
| Company | None |
| Foreign or temporary resident | None for periods after 8 May 2012; apportioned if you were a resident for part of the time |
| Affordable rental housing (eligible individuals) | Up to 60% |
Applying it in the right order
Applying the discount before subtracting losses is a common mistake that overstates the benefit of the loss.
When you can’t use it
- You owned the asset for less than 12 months
- You’re a company
- You chose the indexation method (assets acquired before 21 September 1999)
- The CGT event created a new asset (e.g. granting a lease or restrictive covenant)
- Certain disposals of interests in non-widely held companies or trusts
After 1 July 2027
For resident individuals, trusts and partnerships, the 50% discount applies only to gains that accrued up to 30 June 2027. Gains accruing after that use a CPI-indexed cost base instead, plus a 30% minimum tax for individuals. Super funds keep their 33⅓% discount. How the change works.
Frequently asked questions
How long do I need to hold shares to get the CGT discount?
At least 12 months, not counting the day you bought or the day you sold. If you bought on 1 March 2025, a contract dated 2 March 2026 or later qualifies.
Is the CGT discount applied before or after losses?
After. Losses are subtracted from gains first, and the discount is applied to what’s left. Applying losses against non-discount gains first gives the best result.
Do companies get the CGT discount?
No. Companies pay tax on the full gain. Trusts can apply the 50% discount and pass it to individual beneficiaries; complying super funds get a 33⅓% discount.
Is the CGT discount 50% for property?
Yes, the same 50% applies to property, shares, crypto and other assets. Affordable rental housing can attract up to 60%.
References
Every figure on this page was checked against these primary sources on 16 October 2026.
General information only – not financial or tax advice. See our disclaimer. Spotted an error? Email [email protected].