The 50% CGT discount and the 12-month rule

• Count the 12 months without the day you bought or the day you sold.
• Each purchase has its own date, so buying more doesn't restart the clock on what you already own.
• From 1 July 2027 the discount is replaced for growth after that date. See the 2027 changes.

• Individuals and trusts: 50% off the gain.
• Complying super funds, including SMSFs: a third off.
• Companies: no discount.

You need to be an Australian resident for tax. Foreign and temporary residents can't use the full discount on gains made after 8 May 2012, though part of it may apply for years they were resident.

Leave out the day you bought and the day you sold, and count the days in between. Use the trade dates, not the settlement dates.

Example: you buy on 10 March 2025. A sale on 10 March 2026 is a day short and gets no discount. A sale on 11 March 2026 or later gets it.

A sale even one day before the 12 months are up gets no discount.

Before applying the discount, you take any capital losses off your gains, including losses carried forward from earlier years. For sales up to 30 June 2027, you can choose which gains they come off. Using them against gains that don't get the discount first leaves you with less to pay.

Made-up figures for one financial year:

• A gain of $4,000 on shares held two years (gets the discount).
• A gain of $1,000 on shares held six months (no discount).
• A loss of $2,000 on another sale.

Loss against the six-month gain first: that gain goes to nil, $1,000 of loss is left for the $4,000, leaving $3,000, halved to $1,500. Taxable gain: $1,500.

Loss against the two-year gain: $4,000 less $2,000 is $2,000, halved to $1,000, plus the $1,000 short-term gain. Taxable gain: $2,000.

For most assets the discount is being replaced by indexation for growth after 1 July 2027, with a minimum tax so that tax on the real gain won't fall below 30%. Individuals keep the discount for new residential dwellings and affordable housing. Growth up to then keeps the discount, whenever you sell. Sales up to 30 June 2027 are unchanged.

The 2027 guide explains how the gain on shares you already own is split, with a worked example.

Does buying more of the same shares restart the 12 months?

No. Each purchase keeps its own date. When you sell part of a holding, what counts is the date of the shares that were sold.

Does a share split restart it?

No. After a split or consolidation your shares keep the date you first bought them.

Does the discount apply to crypto?

Yes, on the same terms. See the crypto tax guide.

What if my tax rate is low anyway?

The discount still applies. Until 1 July 2027 there is no minimum rate on capital gains, so the halved gain is taxed at your usual rate.

Portfoli.au shows how long you have held each purchase and applies the discount on the sales that qualify. Losses come off the gains that don't get the discount first, then the rest, and every step is shown so you or your accountant can check it.

Try the free capital gains calculator for one sale, or start free for all of them.

• ATO, CGT discount (updated 29 June 2026)
• ATO, How to calculate your CGT
• ATO, CGT discount for foreign residents

Check with a registered tax agent before you act.

• Capital gains tax on shares in Australia: When you pay tax on selling shares or ETFs, how the gain is worked out, and what to do with a loss.
• Cost base of shares: brokerage and what to include: What goes into the cost of your shares, brokerage included, and which shares count as sold.
• Crypto tax in Australia: Which crypto transactions are taxed, staking rewards, airdrops and the 12-month discount.
• Capital gains tax changes from 1 July 2027: The 50% discount is replaced for growth after 1 July 2027. What that means for shares you own now.
• Tax-loss selling before 30 June, and wash sales: Selling at a loss before 30 June, what the loss is worth, and the buy-back the ATO refuses.
• How ETFs are taxed in Australia: Distributions, the annual tax statement, cost base changes, and selling units.
• How to track your share portfolio in Australia: The records to keep, a spreadsheet or a tracker, and the figures worth watching.
• All guides, and help with using Portfoli.au.
• Capital gains calculator: work out the gain on one sale, free.
• Dividend calculator: estimate dividend income with franking credits, free.