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§ Rules · Income Tax Assessment Act 1997 (Cth) s 115-25

The CGT discount boundary falls the day after the 12-month anniversary

Worked example: An asset acquired on Monday 15 September 2025
Acquisition dateMon 15 Sep 2025
12-month anniversary (not yet qualifying)Tue 15 Sep 2026
Earliest CGT event qualifying for the discountWed 16 Sep 2026
Capital gain on a qualifying disposal$30,000
One-third discount (complying fund, s 115-100)$10,000
Taxable gain after discount$20,000
Tax at the 15% accumulation rate (effective 10% of the gain)$3,000

Gains on assets supporting retirement-phase pensions are exempt current pension income, taxed at 0% within the caps.

The CGT discount requires the asset to have been acquired at least 12 months before the CGT event. Disposing on the anniversary itself does not qualify; the first qualifying day is the calendar anniversary plus one day. For a complying superannuation fund the discount is one-third.

How the rule counts

  1. 01The test is on days held: the CGT event must occur at least 12 months after acquisition, which makes the anniversary date itself one day short.
  2. 02The discount percentage for a complying superannuation fund is one-third (s 115-100); the 50% rate belongs to individuals.
  3. 03Applied to the 15% accumulation rate, one-third off the gain gives an effective 10% on discounted gains.
  4. 04Contract date, not settlement date, generally sets both ends of the count for CGT event A1 disposals.

Sources

  • Income Tax Assessment Act 1997 (Cth) s 115-25 (12-month requirement)
  • Income Tax Assessment Act 1997 (Cth) s 115-100 (discount percentage: one-third for complying super funds)
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