On 12 December 2019, the CGT law was amended to allow an additional CGT discount of up to 10% to Australian resident individuals who provide affordable rental housing to people earning low to moderate income. This increases the CGT discount percentage to up to 60% for qualifying owners of these residential rental properties.
To qualify, you must have provided affordable housing:
- on or after 1 January 2018 for a period or periods totalling at least three years (1,095 days), which may be aggregate usage over different periods, and
- either directly, or from a trust including where there is a interposed entity between you and the trust. The trust that provides the affordable housing and any interposed entities may be a trust, a managed investment trust or partnership, but cannot be a public unit trust or superannuation fund.
The number of days you may have provided affordable housing before 1 January 2018 will not be counted.
To find out, answer the following questions. If you answer No to all questions, you don’t need to read part A but instead go to part B.
Have you applied an exemption or rollover?
If yes, see Exemptions and rollovers.
Do you need information about the three methods of calculating a capital gain?
If yes, see How to work out your capital gain or capital loss.
Have you received a distribution of a capital gain from a managed fund or other unit trust in 2020–21?
If yes, see Trust distributions.
Have you sold shares or units in a unit trust in 2020–21?
If yes, see Investments in shares and units.
Did you sell real estate or your home (main residence) in 2020–21?
If yes, see Real estate and main residence.
Do you need help completing the capital gains item on your individual tax return?
If yes, see the relevant sections in part A, then work through part B.
Do you need help completing the capital gains item on your entity’s tax return?
If yes, see the relevant sections in part A, then work through part C.