Capital Gains
5. 50% CGT Discount
Authors: Whitehead Michelle
Firm / Chambers:
Last updated: 13 Sep 2015
- Where a CGT asset has been held by an individual for more than 12 months a special 50% concession may apply.
- This means that you can reduce your capital gains tax by including only 50% of the net capital gain in your net income. Your net income is the income that is subject to tax.
- To apply the discount, you first need to work out what the cost base of your CGT asset is. This is usually the price you paid for the asset when you purchased it. You can then deduct any capital losses that you have made in the current tax year or which have been carried over from previous tax years. Finally after confirming that you have owned the asset for more than 12 months you can further reduce this amount by 50% to determine the net capital gain that you must include in your income tax assessment.
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