• What is a discount capital gain?

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    An individual, complying superannuation entity or trust may choose under certain circumstances to include in assessable income a percentage of their capital gain, rather than claim indexation of the cost base of the asset frozen as at 30 September 1999. See Discount percentage for more information.

    You may receive the CGT discount if:

    • you are an individual, complying superannuation entity or trust
    • a CGT event happens in relation to an asset that you own
    • the CGT event happens after 11.45 am on 21 September 1999
    • you have owned the CGT asset for at least 12 months
    • you did not choose to apply indexation to the elements of the cost base.

    In certain circumstances you may be eligible for the CGT discount even if you have not owned the asset for at least 12 months. For example:

    • If you acquired an asset as a legal personal representative or a beneficiary of a deceased estate, you are taken to have acquired the asset at the time that the deceased acquired it.
    • If you acquired an asset as the result of a marriage breakdown, you will satisfy the 12-month requirement if the period your spouse owned the asset and the period you have owned the asset are in total equal to or greater than 12 months.
    • If a CGT asset is compulsorily acquired, lost or destroyed and you acquire a replacement asset, you will satisfy the 12-month requirement if the period of ownership of the original asset and the new asset is at least 12 months.
    Last modified: 18 Sep 2009QC 18323