• ### Step 7 Applying the CGT discount

Warning:

This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

End of attention

The discount percentage of 50% for individuals can only be applied to those capital gains calculated using the discount method. If you have used the indexation method or the 'other' method, you cannot apply the discount to those capital gains.

If you had any capital losses, these should have been taken off your capital gains in step 5 or step 6. If there is any remaining current year capital gain for which you used the discount method, you can now reduce this by 50% to arrive at your total discount method capital gains.

Example: Total discount method capital gains

From our earlier example, we know Kathleen had discount method capital gains of \$2,520 after applying relevant capital losses. She works out her total discount method capital gains by multiplying her gain by the CGT discount of 50%:

\$2,520 × 50% = \$1,260

End of example