CGT 50% discount

Australian residents (individuals and most trusts) get a 50% discount on the capital gain when they sell an asset they've held for more than 12 months, measured contract date to contract date. The discount halves the gain before it's added to your taxable income, so you effectively pay tax on only half of your profit. The discount is one of the biggest reasons investors hold rather than flip - selling at 11 months and 29 days versus 12 months and 1 day can double the tax bill on the same gain. Companies don't get it. SMSFs get a one-third discount instead of half. The discount applies only to the gain, not to depreciation recapture.