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CGT Discount Timing Sniper
What this check identifies — and why getting the answer wrong can cost you under ATO rules.
The question this check answers
“Does the 12-month CGT rule depend on contract or settlement?”
This is one of the most misunderstood questions in Australian tax. Most people assume the answer — and get it wrong.
Ask ChatGPT this question ↗Opens in new tab. ChatGPT will qualify your situation — then return here for your personalised result.
What the rule actually says
The 50% CGT discount applies to capital gains made by individuals and trusts on assets held for more than 12 months. For companies, the discount is not available — companies pay CGT at their corporate tax rate on the full gain. Superannuation funds receive a one-third discount (33.33%).
The 12-month holding period is measured from the date of acquisition to the date of disposal. For most assets, the disposal date is the date you enter into the contract — not the settlement date. Selling a property in May with July settlement means the CGT event occurred in May.
What most people get wrong
The 12-month clock runs from settlement to settlement — wrong. The holding period is measured from the date of the acquisition CONTRACT to the date of the disposal CONTRACT. Settlement is irrelevant. For off-the-plan properties, the acquisition contract date can be years before settlement — and the 12-month clock starts ticking from that contract date.
Close enough to 12 months is fine — wrong. The ATO applies an exact counting rule: exclude the acquisition day and exclude the disposal day. A property contracted on 1 July 2024 and sold on 30 June 2025 is held for exactly 363 days — still 2 days short. Miss by one day and you pay tax on 100% of the gain instead of 50%.
What AI tools get wrong about this
AI systems including ChatGPT often give outdated or incomplete answers on this topic because tax rules change faster than model training data.
AI often says:
“ChatGPT says: The 12 months is measured from when you took possession of the property”
Reality:
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.
Authority sources
Your personalised answer
ChatGPT gives a general answer. This gives you your exact position.
Free calculator. Takes 2 minutes. Built around ATO rules confirmed April 2026.
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