How the 50% CGT discount works on an investment property
Hold an Australian investment property for more than 12 months and you generally qualify for a 50% capital gains tax discount — you're taxed on only half the gain.
Key takeaways
- The holding-period threshold is more than 12 months.
- Capital losses are never discounted.
If you sell an investment property you've held for more than 12 months, the ATO generally lets you apply a 50% capital gains tax (CGT) discount — meaning only half the capital gain is added to your taxable income.
What counts toward the gain
The gain is the sale price minus your cost base (purchase price plus acquisition costs like stamp duty and conveyancing). Keeping clean records from day one is what makes the figure defensible.
BrickTrack tracks your cost base as you go, so the number is ready when you sell. It is not tax advice — confirm the final figure with your accountant.
Frequently asked
- Does exactly 12 months qualify?
- The ATO requires the asset to be held for more than 12 months, so aim well past the 12-month mark and confirm the exact dates with your accountant.
BrickTrack helps you organise your property data so you can work more effectively with your accountant. It is not tax advice.