CGT Discount

The Capital Gains Tax system takes into account the staggered nature of capital gains. Often taxpayers will make large capital gains in a particular year which will push up their taxable income, often into a higher tax bracket.

The system deals with this issue by discounting capital gains made by individuals by 50%, and gains made by super funds by 1/3 provided the taxpayer has held the asset for at least a year. If the asset is held by a company, or is held by an individual or a super fund for less than a year, no capital gains tax discount will apply.