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  • Step 9-Applying the CGT discount



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

    End of attention

    Where available, you can now apply the CGT discount to any remaining discount method capital gains by reducing these capital gains by 50%.


    If Fred had kept his shares for at least 12 months, he could have reduced his $925 gain by the CGT discount of 50% to arrive at a net capital gain of $462 (cents are not shown).

    $925 × 50% = $462 (cents are not shown)

    End of example

    Note: when you cannot apply the CGT discount

    Remember, you cannot apply the CGT discount to capital gains calculated using the indexation method. You also cannot apply the CGT discount to other capital gains for which the discount is not available, for example CGT assets you bought and sold within 12 months.

    Last modified: 06 Oct 2009QC 16182