Before vs After 12 Months: The 50% CGT Discount

For a sale before 1 July 2027, the 50% CGT discount is the single biggest factor in reducing your capital gains tax. This calculator shows you exactly how much you could save by waiting until you've held your asset for at least 12 months.

Many investors underestimate the impact. On a $100,000 gain, the discount can save over $20,000 in tax. See the numbers for your specific situation.

Held past 12 months and disposed of before 1 July 2027, this gain still gets the full 50% CGT discount — but the discount is abolished for CGT events from 1 July 2027. If your own sale will land on or after 1 July 2027, the 12-month question below no longer decides your tax bill — use the CGT reform calculator instead, which applies cost-base indexation and the 30% minimum tax.

Scenario A: Sell before 12 months

Scenario B: Sell after 12 months

Applies to both scenarios

4 months after Scenario A

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01 —INPUTS
✓
Scenario B saves $8,010.00 in tax compared to Scenario A.This difference is mainly driven by the CGT discount and your marginal tax rate.
02 —RESULTS

Scenario A

Sell before 12 months
Determines the financial year and 12-month discount test.
Buying/selling costs, stamp duty, legal fees, agent fees
Amounts that must reduce the cost base, such as Div 43 capital works deductions claimed or claimable, or a return of capital
Allowable current-year and carried-forward losses, excluding collectable and personal-use losses
Your taxable income excluding this capital gain

2024-25 Capital Gains Tax rates

10 months - No CGT discount
Capital Gain
Your capital gain is $47,000.00
CGT Discount
No CGT discount applies
Additional Tax
This capital gain increases your tax by approximately $15,530.00

Tax Comparison

MetricBefore SaleAfter Sale
Taxable income$95,000.00$142,000.00
Income tax$19,288.00$33,878.00
Medicare levy$1,900.00$2,840.00
Total tax$21,188.00$36,718.00

Scenario B

Sell after 12 months
Determines the financial year and 12-month discount test.
Buying/selling costs, stamp duty, legal fees, agent fees
Amounts that must reduce the cost base, such as Div 43 capital works deductions claimed or claimable, or a return of capital
Allowable current-year and carried-forward losses, excluding collectable and personal-use losses
Your taxable income excluding this capital gain

2024-25 Capital Gains Tax rates

Held 13 months — 50% CGT discount applies
Capital Gain
Your capital gain is $47,000.00
CGT Discount
50% CGT discount applied: $23,500.00
Additional Tax
This capital gain increases your tax by approximately $7,520.00

Tax Comparison

MetricBefore SaleAfter Sale
Taxable income$95,000.00$118,500.00
Income tax$19,288.00$26,338.00
Medicare levy$1,900.00$2,370.00
Total tax$21,188.00$28,708.00
03 —BREAKDOWN

This calculator provides estimates only and does not constitute financial advice. Actual amounts may vary based on individual circumstances. Consult a registered tax agent for personalised guidance.

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How to use this comparison

  1. Review the pre-filled scenarios — we've set up realistic defaults for comparison
  2. Adjust the numbers — enter your actual purchase price, sale price, and dates
  3. Compare the results — see the tax difference highlighted at the top
  4. Share or bookmark — the URL updates as you change inputs

How Capital Gains Tax Works

When you sell an asset for more than you paid, the profit is a capital gain. In Australia, this gain is added to your taxable income and taxed at your marginal rate. The amount of tax you pay depends on your total income that year, how long you held the asset, and whether any exemptions apply.

Key factors affecting your CGT

  • Holding period: Assets held for 12+ months qualify for the 50% CGT discount before 1 July 2027, halving your taxable gain; CPI cost base indexation and a 30% minimum tax apply to gains from that date
  • Your income: Higher income means a higher marginal tax rate on your capital gains
  • Asset type: Your main residence is generally CGT-free; investment properties and shares are not
  • Cost base: Includes purchase price plus costs like stamp duty, legal fees, and improvements

Use the calculator above to model your specific situation. Adjust the inputs to see how different scenarios affect your tax outcome.

Frequently asked questions

How much does the 50% CGT discount save?
On a disposal before 1 July 2027, the discount halves your taxable capital gain. At a 37% marginal rate, a $100,000 gain means $18,500 tax without the discount, but only $9,250 with it—a saving of $9,250. At 45%, the saving is $11,250. From 1 July 2027 the discount is abolished, so these savings do not apply to later sales.
Do I need exactly 12 months?
You need at least 12 months and one day. Selling on the anniversary of your purchase date does NOT qualify—you must wait until the day after. This test only matters for disposals before 1 July 2027; from that date the general discount is gone regardless of how long you have held.
Does the discount apply to all assets?
For disposals before 1 July 2027, the 50% discount applies to most CGT assets for Australian resident individuals, but not to companies or assets acquired before 20 September 1985. Some collectables and personal use assets have different rules. From 1 July 2027 the general discount is abolished for individuals, trusts and partnerships; new residential dwellings are the one asset class that keeps a 50% discount option.
What if the market might drop while I wait?
That's the trade-off. If you expect a 10% price drop but the discount saves 20% in tax, waiting might still be better. This calculator helps you see the tax side; market timing is a separate decision. Waiting also has a hard deadline now: a sale pushed past 30 June 2027 loses the discount entirely.
Does the 12-month rule still matter after 1 July 2027?
Not for the 50% discount — Acts 49 and 50 of 2026 abolish it for CGT events from 1 July 2027. A 12-month hold still matters, because CPI cost-base indexation under the new regime is only available on assets held 12 months or more. The gain is then subject to a 30% minimum tax on the real (post-indexation) amount.

Other CGT scenarios

Sell now vs hold See how waiting could reduce your CGT This year vs next year Compare selling before or after 30 June PPOR vs investment Main residence exemption comparison Hold 1 year vs 2 years Compare holding period strategies
View all CGT scenarios

What to do after this comparison

Understand the rules

12-month discount rules Check discount eligibility and common timing errors. Using capital losses Understand loss ordering and offset constraints.

Compare alternatives

Sell this year vs next Compare CGT outcomes across financial years. Loss offsets comparison Model when carrying losses creates better outcomes.

Run the numbers

CGT calculator Run your exact numbers with dates and cost base items. Income tax calculator Measure total annual tax once gains are added.

Tax Accuracy & Sources

Reviewed: March 2026 · Tax year: 2026-27

This calculator is an estimate tool and may not cover all personal circumstances. For state-based taxes, confirm details with your state or territory revenue office.

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