CGT Discount Comparison
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Why Compare CGT Discount Scenarios?
Capital Gains Tax (CGT) discounts can change modelled property sale proceeds substantially. The rules and rates differ for Individuals, SMSFs, and Trusts. This educational tool lets you compare the modelled impact of 25%, 30%, 40%, and 50% CGT discounts under inputs you control — for information only, not tax advice.
CGT discount policies are subject to change. Governments periodically review and reform tax legislation, which means the discount rates available today may differ in the future. Comparing scenarios can help you see how changes in CGT discount rates would affect modelled net proceeds under policy uncertainty. This is not a recommendation about selling, holding, or tax structures.
What You Can Explore:
- Current situation: Model outcomes under today's illustrative CGT discount rates.
- Policy scenarios: Test what happens if CGT discounts reduce (e.g., from 50% to 40% or 25%) — explore sensitivity of your assumptions.
- Planning horizon: See how holding periods affect sensitivity to discount changes in the model.
- Entity comparison: Compare how individuals, SMSFs, and trusts are affected by different discount rates in illustrative scenarios.
Individuals & the 12-Month Rule
If you are an Australian resident individual and have held your property for at least 12 months, you may be eligible for a 50% CGT discount. This means only half your capital gain is taxed. If you sell in under a year, you are not eligible for this discount.
SMSFs & Trusts
Self-Managed Super Funds (SMSFs) are generally eligible for a 33% CGT discount after 12 months, while Trusts may have different rules. SMSFs also benefit from a lower tax rate (15% on gains). Comparing scenarios helps you understand the after-tax outcome for your structure.
How it Works
This free Australian CGT calculator projects your net cash after selling a property, comparing four scenarios where the taxable portion of your capital gain is reduced by 25%, 30%, 40%, or 50%. Enter your property details, costs, and (optionally) your salary to estimate your post-tax proceeds under each discount rate.
The Four Discount Scenarios
Understanding how different CGT discount rates affect modelled outcomes is useful for educational comparison:
- 25% Discount: Only 75% of your capital gain is taxed. Use this to model conservative scenarios or reduced discounts under potential policy changes.
- 30% Discount: Only 70% of your capital gain is taxed. This middle option helps visualize outcomes between lower and higher discounts.
- 40% Discount: Only 60% of your capital gain is taxed. Some investment structures may qualify for this rate.
- 50% Discount: Only 50% of your capital gain is taxed. The standard rate for eligible Australian resident individuals who meet the 12-month holding requirement.
The 12-Month Holding Rule for 50% CGT Discount
If you are an Australian resident and have owned your property for at least 12 months, you may be eligible for a 50% CGT discount on your capital gain. This means only half your gain is added to your taxable income. The calculator shows how this compares to 25%, 30%, and 40% discount scenarios.
Note: If you sell within 12 months, you lose eligibility for the 50% discount and would be taxed on the full gain (equivalent to 0% discount, or 100% taxable).
What Factors Affect Your CGT Calculation?
- Cost Base: Your purchase price plus acquisition costs (stamp duty, legal fees, building costs).
- Capital Gain: Sale price minus cost base. This is the amount subject to CGT.
- Selling Costs: Deductible expenses reduce your net proceeds (agent fees, legal costs, advertising).
- Your Income Level: If you provide your taxable income, the calculator uses your marginal tax rate for more accurate results. Otherwise, it uses a flat 25% tax rate as an estimate.
- Holding Period: Affects eligibility for discounts and helps you model long-term outcomes.
Deductible Sell Costs
These costs reduce your net proceeds and are factored into your cost base:
- Real estate agent commissions (typically 1–3% of sale price)
- Legal and conveyancing fees
- Advertising and marketing expenses
- Property inspection and pest survey costs
- Building repairs or maintenance required for sale
How Policy Changes Affect Your Outcome
By comparing all four discount rates side by side, you can understand the financial impact if CGT policy changes. For example:
- If the 50% discount is reduced to 40%, your tax liability increases — use the 40% scenario to see the impact.
- If you're an SMSF and the current 33% discount changes, compare how this affects your after-tax proceeds.
- Test different holding periods to see how long you need to hold to overcome a potential discount reduction.
Important Assumptions
- The calculator assumes you have held the property for 12+ months (if comparing 50% discount scenario).
- CGT calculations are based on Australian resident individual circumstances unless you specify SMSF/trust rules.
- Tax rates and brackets used are from 2025–26 financial year.
- This is an educational tool for exploration, not financial or tax advice of any kind.
- Seek a tax professional if you need personal advice for your situation.