What is the Capital Gains Tax (CGT) Discount?
When you sell an investment for more than you paid, like a rental property or shares, the profit you make is called a capital gain and you normally pay Capital Gains Tax (CGT) on that profit. In Australia, if you’ve owned the investment for more than 12 months, you only pay tax on half of that profit because of the 50% CGT discount. In 2024–25 the 50% discount cost the budget an estimated $19.7 billion.
