What is the CGT discount and how does it work?

Understand what the CGT discount is, who can access it, and how it reduces the capital gain assessed on eligible assets.

Summary

Under the current rules, eligible individuals and trusts can generally reduce a discount capital gain by 50% when they have owned the asset for at least 12 months. Complying super funds generally receive a 33.33% discount, while companies cannot use the CGT discount.

What this means

For individuals and trusts, the current 50% discount generally applies to eligible capital gains on assets held for at least 12 months. Capital losses are applied before the discount, and special rules can reduce the discount for foreign or temporary residents. Companies are not eligible for the CGT discount.

A legislated reform starts from 1 July 2027. For individuals, trusts and partnerships, gains that accrue up to 30 June 2027 retain access to the existing 50% discount, while gains accruing from 1 July 2027 are subject to new inflation-based cost-base indexation and a minimum 30% tax rate on real capital gains. Eligible new-build investments can choose between the existing discount and the new arrangements.

Typical actions

  • Track the acquisition date and cost base of each CGT asset.
  • Apply any current-year and carried-forward capital losses before applying a discount.
  • For disposals spanning 1 July 2027, keep records needed to distinguish gains accrued before and after the reform start date.
  • Check whether foreign-resident rules or other special rules affect your discount.
  • Use current ATO and Treasury guidance when calculating a gain.

Official sources

Last checked: 25 August 2026

CGT discount
Main ATO page on the CGT discount, including who is eligible.

How to calculate your CGT
Step-by-step CGT calculation including where the discount is applied.

CGT discount for foreign residents
Explains how the discount is affected for foreign residents.

Budget 2026–27 tax system changes
Treasury explains the CGT reforms commencing from 1 July 2027 and the transitional treatment of earlier gains.

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Important notice: Tax Clarity is an independent information tool. This page provides general information based on official sources. It does not provide tax, legal, financial, or accounting advice. Tax rules can change, and how they apply depends on your circumstances. For advice about your situation, speak with a registered tax agent or qualified professional.

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