Australia Capital Gains Tax Discount Rules Explained
The 50% capital gains tax (CGT) discount applies to Australian residents who hold assets for more than 12 months. This guide explains eligibility, calculation methods, and key exceptions.
Eligibility for the CGT Discount
- Must be an Australian resident for tax purposes
- Asset must be held for at least 12 months
- Applies to most investments (shares, property, collectibles)
How the Discount Works
Example calculation:
| Proceeds | $500,000 |
|---|---|
| Cost Base | $300,000 |
| Gain | $200,000 |
| 50% Discount | $100,000 taxable |
Exceptions to the Rule
- Non-resident-held assets
- Personal assets (cars, furniture)
- Business assets under $150,000
- Collectibles over $500
Use our Australia Capital Gains Tax Calculator to estimate your liability based on your specific circumstances. The tool automatically applies the 50% discount when eligible.