• ## Discount percentage

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This is the percentage by which the capital gain to be included in your assessable income is reduced. You reduce the capital gain only after applying all available capital losses.

If you are an individual or trust, the discount percentage is 50 per cent. If you are a complying superannuation entity - including a trust that is a complying superannuation entity - the discount percentage is 33 1/3 per cent.

Example

Sharon acquires shares in a listed public company in June 1992, and units in a listed unit trust in May 1996. She has a net capital loss of \$12,000 in the 1998-99 income year, and incurs a further capital loss of \$6,000 in August 1999.

Sharon sells the shares in July 1999 and makes a capital gain of \$4,000. She calculates this capital gain by indexing the elements of the cost base. She also sells the units during February 2000 and makes a capital gain of \$22,000. She chooses not to index the elements of the cost base.

Sharon may choose to apply her capital losses in any order, but she must apply her current and prior year losses against discount gains before reducing them by the discount percentage. She chooses to apply the \$6,000 current year capital loss firstly against the \$4,000 gain realised in July 1999, leaving a current year capital loss balance of \$2,000. She will then apply the remaining \$2,000 current year capital loss and the prior year net capital loss of \$12,000 against the discount gain of \$22,000.

Sharon reduces the discount capital gain remaining (\$8,000) by 50 per cent. Her net capital gain to be included in her assessable income for the 1999-2000 income year is \$4,000.