{"schema_version":"1.0","generated_by":"COLE — Citation Operations & Legal Engine","product_id":"cgt-discount-timing-sniper","title":"CGT Discount Timing Sniper","site":"https://taxchecknow.com/au/check/cgt-discount-timing-sniper","authority":"ATO","authority_url":"https://www.ato.gov.au","jurisdiction":"Australia","language":"en-AU","currency":"AUD","last_verified":"April 2026","legislation":"Income Tax Assessment Act 1997 s.115-10 — 50% CGT discount for individuals and trusts","legal_anchor":"ITAA 1997 — CGT discount (s.115-10)","deadline":{"iso_date":"2026-06-30T23:59:59.000+10:00","display":"30 June 2026","description":"Australian EOFY — CGT events in 2025/26 must be reported in the annual return","urgency_label":"EOFY"},"key_facts":{"individual_trust_discount":"50% if held over 12 months","company_discount":"None — zero","smsf_discount":"33.33% if held over 12 months","holding_period_start":"Purchase contract date","holding_period_end":"Sale contract date","legislative_anchor":"ITAA 1997 s.115-10"},"formula":"Discounted Capital Gain = (Total Gain - Capital Losses) × 50% (for individuals and trusts held over 12 months). Tax = Discounted Gain × Marginal Rate. No discount if held under 12 months: Tax = Full Gain × Marginal Rate.","thresholds":[{"label":"Held over 12 months — discount confirmed","value":1,"status":"clear"},{"label":"Held 10-12 months — close to the 12-month mark","value":2,"status":"approaching"},{"label":"Held under 12 months — no discount available","value":3,"status":"trap"},{"label":"Uncertain purchase date — records incomplete","value":4,"status":"risk"},{"label":"Asset held in company — no discount at all","value":5,"status":"fail"}],"common_ai_errors":[{"error_id":1,"ai_says":"ChatGPT says: The 12 months is measured from when you took possession of the property","correct":"Reality: The holding period starts from the date of the purchase contract — not the date you moved in, took possession, or received the keys. For property, this is the date you signed the contract of sale."},{"error_id":2,"ai_says":"ChatGPT says: The CGT discount applies to company-owned assets if you are the director","correct":"Reality: Companies do not receive the CGT discount under any circumstances. The 50% discount applies only to individuals, trusts, and (at a reduced 33.33% rate) superannuation funds. Being a director of the company does not transfer the discount to the company."},{"error_id":3,"ai_says":"ChatGPT says: You can choose which losses to apply to maximise the discount","correct":"Reality: You must apply current-year capital losses to capital gains before applying the discounted method. You can choose which gains to apply losses against — but you cannot skip the loss offset step to preserve a full discounted gain."}],"faq":[{"id":1,"question":"What is the 50% CGT discount?","answer":"The 50% CGT discount reduces the taxable capital gain by half for individuals and trusts that have held an asset for more than 12 months. Instead of paying tax on the full $200,000 gain, you pay tax on $100,000. At a 45% marginal rate, this saves $45,000."},{"id":2,"question":"When does the 12-month clock start?","answer":"The 12-month clock starts on the date of the purchase contract — not settlement, not when you moved in, not when you received the keys. For most property sales, this is the date you signed the contract of sale. Check your contract date carefully."},{"id":3,"question":"When does the 12-month clock stop?","answer":"The clock stops on the date of the sale contract — not settlement. If you sign a contract to sell in May but settlement is in July, the CGT event occurred in May and the holding period ends in May."},{"id":4,"question":"Does the CGT discount apply to shares?","answer":"Yes — the 50% CGT discount applies to shares held by individuals and trusts for more than 12 months. The purchase date is the date the purchase was confirmed (settlement of the share trade, typically T+2 for ASX shares). Shares sold within 12 months are taxed at full marginal rates."},{"id":5,"question":"Can I get the CGT discount through a trust?","answer":"Yes — a discretionary trust can access the 50% CGT discount if it distributes the discounted gain to individual beneficiaries. The trust itself does not pay CGT — it distributes the capital gain to beneficiaries who include their share in their individual tax returns."}],"sources":[{"title":"ATO — CGT discount","url":"https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/cgt-discount"}],"products":{"tier1":{"name":"Your CGT Discount Timing Plan","price":67,"currency":"AUD","description":"Did you hold long enough for the 50% discount?","url":"https://taxchecknow.com/au/check/cgt-discount-timing-sniper/success/assess"},"tier2":{"name":"Your Multi-Asset CGT Strategy","price":147,"currency":"AUD","description":"Optimise CGT across your entire portfolio","url":"https://taxchecknow.com/au/check/cgt-discount-timing-sniper/success/plan"}},"monitor_urls":["https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/cgt-discount"],"canonical":"https://taxchecknow.com/au/check/cgt-discount-timing-sniper","api_endpoint":"/api/rules/cgt-discount-timing-sniper","generated_at":"2026-04-21T12:32:49.150Z"}