• Capital gains tax (CGT) discount for foreign resident individuals

    The CGT discount, previously known as the CGT 50% discount, was available to foreign resident individuals on taxable Australian property.

    In the 2012–13 Budget, the government announced changes to the application of the CGT discount. These changes became law on 29 June 2013.

    What changed?

    From 8 May 2012, foreign or temporary resident individuals must meet certain conditions to apply the CGT discount.

    For CGT events occurring after 8 May 2012, the application of a CGT discount will depend on:

    • whether you held the CGT asset before or after 8 May 2012
    • the residency status of the individual who has the capital gain.

    Who is affected?

    This change affects individuals (including beneficiaries of trusts and partners in a partnership) who:

    • are a foreign or temporary resident
    • are an Australian resident with a period of foreign residency after that date
    • had a discount capital gain from a CGT event that occurred after 8 May 2012.

    If you are unsure about your residency status, use our Are you a resident? tool.

    You are not affected by this change if the CGT event occurred before 8 May 2012.

    How do the changes affect foreign or temporary residents?

    You must calculate the CGT discount you can apply to the capital gain if you are a foreign or temporary resident individual and, after 8 May 2012, you have a discount capital gain from a CGT event.

    If you were a foreign or temporary resident on 8 May 2012, you may choose to get a market value for the CGT asset as at 8 May 2012 and use a market value calculation. This will apportion the CGT discount to take into account the capital gain you accrued before 8 May 2012.

    You can use the CGT discount worksheet (PDF, 148KB) to determine your eligibility and calculate the CGT discount you can apply.

    How do the changes affect Australian residents?

    You must calculate the CGT discount you can apply to the capital gain you have if you are an Australian resident and, after 8 May 2012, you have:

    • a capital gain from a CGT event
    • a period of foreign or temporary residency.

    Your period of foreign or temporary residency after 8 May 2012 is taken into account when calculating the CGT discount you can apply.

    Use the CGT discount worksheet (PDF, 148KB) to work out your eligibility and calculate the CGT discount you can apply.

    How to calculate your CGT discount percentage

    Use our Are you a resident? tool to work out if you are an Australian resident for tax purposes.

    Use the CGT discount worksheet (PDF, 148KB) to check:

    • if you are eligible for a discount
    • the amount of discount you can apply to your capital gain.

    If you sold more than one asset, use the worksheet for each asset unless you bought and sold each asset at the same time.

      Last modified: 31 Aug 2016QC 35657