Tax & Superannuation: Income - Guides
Income
5. 50% CGT Discount
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Last updated: 31 Jul 2015
- A special discount Capital Gains Tax (CGT) rule applies to CGT assets of individuals and certain other entities including trustees where the assets are held for at least 12 months.
- There is a Taxation Determination (TD 2002/10) that stipulates the 12 month requirement. It also stipulates that the day the asset is acquired and disposed of must be included in the calculation.
- The 50% discount rule is one of the major tax concessions for individuals and if it applies to you it can reduce your capital gains tax by including only 50% of the net capital gain in income that is subject to tax.
- The CGT discount is calculated only after any capital losses or carried forward capital losses are applied.
- The 50% CGT discount does not apply to companies.
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