FiscalFox editorial team · Product lead: Grant Sloane · Updated
Calculate Australian CGTCount 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.
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.
| Calculation | AUD 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
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