The 50% CGT discount and the 12-month rule

    For share sales up to 30 June 2027, an Australian resident individual can generally halve an eligible gain after applying capital losses. Each purchase parcel has its own 12-month clock.

    FiscalFox editorial team · Product lead: Grant Sloane · Updated

    Calculate Australian CGT

    Count the holding period for each purchase

    Exclude the acquisition day and the disposal day. A parcel acquired on 15 July 2024 first qualifies for the discount on 16 July 2025. Selling on the anniversary itself is too early.

    A later top-up is a separate parcel. Selling a mixture of old and recent shares can produce both discountable and non-discountable gains.

    Sources: ATO: CGT discount

    Apply losses before halving a gain

    Use current-year capital losses and then carried-forward net capital losses before the discount. Halving the gain first and taking off all the losses afterwards understates the taxable result.

    Sources: ATO: Using capital losses to reduce capital gains

    Keep the current and reform years separate

    This guide’s 50% calculation covers ordinary share sales through 30 June 2027. The enacted 2027 reform changes post-transition gains. Assets held through 30 June 2027 need transition records; the deferred part and later growth follow separate rules.

    Sources: Treasury Laws Amendment (Tax Reform No. 1) Act 2026

    Worked example: the anniversary boundary

    Synthetic purchase on 15 July 2024 for $1,000, sold for $3,000, with no losses or other costs.

    Worked example: the anniversary boundary
    CalculationAUD or result
    Sale on 15 July 2025: gain$2,000
    Discount on anniversary sale$0
    Net gain on anniversary sale$2,000
    Sale on 16 July 2025: gain$2,000
    Net gain on eligible sale$1,000

    Questions and answers

    Does holding shares for a year halve my tax bill?

    The discount reduces the eligible capital gain remaining after losses. Your eventual tax depends on taxable income and your circumstances.

    Does a dividend reinvestment start a new holding period?

    Yes. Each reinvestment acquisition is a new parcel with its own acquisition date. It does not inherit the date of your original investment.

    Official sources

    Sources reviewed . Export steps describe FiscalFox’s supported file. Broker help links explain the available reports; menu names can vary by account and platform.

    ATO: CGT discount

    ATO: Using capital losses to reduce capital gains

    Treasury Laws Amendment (Tax Reform No. 1) Act 2026

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    Calculate Australian CGT