Capital gains tax discount (Australia)
A 50% reduction in the assessable capital gain on a CGT asset held by an Australian resident individual or trust for at least 12 months before the CGT event.
Where an Australian resident individual or trust holds a CGT asset for at least 12 months, the taxable portion of any capital gain on disposal is reduced by 50%. The discount is applied after capital losses have been offset and is one of the most significant features of Australian investment property taxation.
The 50% discount is not available to companies. Complying superannuation funds receive a one-third discount instead. For foreign and temporary resident individuals, the discount has been unavailable or restricted for accruals on or after 8 May 2012.
The 12-month holding period is measured from the contract date of acquisition to the contract date of disposal, not settlement dates.
Primary source
Australian Taxation Office (ATO) — The CGT discount →Last reviewed 15 April 2026. Rates, thresholds, and deadlines change — always verify against the primary source before making decisions.