CGT Discount What-If Calculator
The CGT 50% discount wasn't changed in Budget 2026 — but Labor has floated it before, and it remains a live policy debate. Model the tax impact of any CGT discount rate on your assets.
Your Asset & Gain
| Item | Current (50%) | Scenario | Difference |
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Understanding the CGT discount debate
What the current 50% discount does
Since September 1999, Australian residents who hold a capital asset (property, shares, cryptocurrency, etc.) for more than 12 months before selling receive a 50% discount on their taxable capital gain. If you make a $300,000 gain on a property, only $150,000 is included in your assessable income and taxed at your marginal rate.
This is a significant concession — it effectively halves the CGT rate for long-term investors. A person on a 47% marginal rate only pays 23.5% of the gain in tax after the discount.
Why it's been debated
Critics of the 50% discount argue it disproportionately benefits wealthier Australians who hold larger investment portfolios, encourages over-investment in housing relative to productive assets, and contributes to housing affordability issues by inflating demand from investors.
Supporters argue it compensates for the effect of inflation eroding real returns (the old indexation method), encourages long-term investment, and that removing it would trigger a wave of asset sales as investors reposition — potentially crashing values and reducing tax revenue short-term.
What's actually been proposed
Labor's 2019 election policy included reducing the CGT discount from 50% to 25% for assets purchased after a transition date, while grandfathering existing assets. The Greens have proposed eliminating it entirely. The Henry Tax Review (2010) recommended replacing the discount with a simple inflation-adjusted cost base method — neither party has adopted this.
The 2026 Budget made no changes to CGT. This calculator exists so you can model the impact and understand your position for planning purposes.
Negative gearing interaction
Negative gearing (deducting property losses against other income) and the CGT discount work together to make investment property particularly tax-effective in Australia. If the CGT discount were reduced, many property investors might shift their calculus — negative gearing allows losses to reduce income tax now, while the CGT discount reduces tax at the point of sale. Some economists argue the two policies should be considered together in any reform.
Frequently asked questions
Is the CGT discount changing in the 2026 Budget?
No. The Albanese Government's May 2026 Budget did not include any changes to the CGT 50% discount. This calculator is a what-if planning tool for modelling future policy scenarios or comparing with other tax regimes.
Does the CGT discount apply to shares and crypto?
Yes — the 50% discount applies to all capital assets held by Australian residents for more than 12 months, including listed shares, ETFs, cryptocurrency, managed funds, and investment properties. It does not apply to assets held in a company name, foreign residents, or assets held for less than 12 months.
What's the CGT rate without the discount?
Capital gains are taxed at your marginal income tax rate (plus Medicare Levy). There is no separate CGT rate — the gain is simply added to your other income. Without the 50% discount, a $300,000 gain on top of a $95,000 salary would push a significant portion into the 45% + 2% Medicare bracket.
Can I use capital losses to offset CGT?
Yes. Capital losses from other asset disposals in the same tax year (or carried forward from prior years) can be offset against your capital gains before the 50% discount is applied. This can significantly reduce your CGT liability.
What happens to negative gearing if CGT changes?
Negative gearing (deducting rental losses against your salary income) is a separate provision and would not automatically change if the CGT discount was reduced. However, many investor decisions consider both policies together — if the CGT exit tax increases, the expected return from negative gearing strategies changes.