CGT discount (50%)
Hold an asset over 12 months and only half the gain is taxed.
The CGT discount lets individuals and trusts halve a capital gain if they held the asset for more than 12 months before selling. So a $20,000 gain becomes a $10,000 taxable gain, added to your income and taxed at your marginal rate. Companies don’t get the discount.
Capital losses come off your gains before the discount is applied, and unused losses carry forward to future years.
Try the capital gains tax →Grounded in ATO guidance. General information, not tax advice.
Related terms
Marginal tax rate
The tax rate on your next dollar of income.
Franking credits
A credit for company tax already paid on your dividends.
Tax-free threshold
The first $18,200 of income you can earn tax-free.
Medicare levy
A 2% levy on most taxable income that funds public health.
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