§ 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 date | Mon 15 Sep 2025 |
| 12-month anniversary (not yet qualifying) | Tue 15 Sep 2026 |
| Earliest CGT event qualifying for the discount | Wed 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
- 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.
- 02The discount percentage for a complying superannuation fund is one-third (s 115-100); the 50% rate belongs to individuals.
- 03Applied to the 15% accumulation rate, one-third off the gain gives an effective 10% on discounted gains.
- 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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