CGT 50% Discount Calculator
See exactly how much tax the 12-month CGT discount saves you on a capital gain.
Understanding the 50% CGT Discount
The 50% CGT discount is one of the most valuable concessions in the Australian tax system. By simply holding an asset — shares, property, managed funds, or cryptocurrency — for more than 12 months, you halve the amount of capital gain that is added to your taxable income.
How the Discount Works
Without the discount, a $100,000 capital gain is added in full to your other income and taxed at your marginal rate. If you're in the 37% tax bracket, that's $37,000 in CGT. With the discount, only $50,000 is added to your income — cutting your CGT to $18,500. The saving is $18,500 purely from waiting 12 months.
The Mechanics: Marginal Rate Stacking
Capital gains are always stacked on top of your ordinary income. This means the gain is taxed at the highest marginal rate that applies to that slice of your income. The calculator uses the marginal rate difference method — comparing your total tax with and without the gain — which gives the most accurate result.
Eligibility Rules
- You must be an Australian resident individual or eligible trust
- The asset must have been held for more than 12 months (calculated from the day after acquisition to the day of disposal)
- The gain must not be from assets exempted from the discount (e.g. some financial arrangements)
- Companies are not eligible — they use cost indexation rules instead
Effective CGT Rate
The effective CGT rate shown is the CGT payable divided by the total (pre-discount) capital gain. This gives you a real-world measure of what percentage of your gain you're actually paying in tax, making it easy to compare scenarios.