Tax and Structures


Capital gains tax

Reduction of capital gains tax

The assessable portion of capital gains on assets held for more than 12 months, may be reduced, by a discount factor depending on the entity that owns the asset:

  • Individuals and trusts (50% discount) – half of the capital gain is included in assessable income (for trusts this applies if the distribution is made to an individual) 
  • Super Funds (1/3 discount) – two thirds of the capital gain is included in assessable income
  • Companies (no discount) – all of the capital gain is included in assessable income

Please note: From 1 July 2020, Managed Investment Trusts (MITs) and Attribution MITs will no longer be able to apply the 50% capital gains discount at the trust level; ensuring that income is taxed in the hands of investors, as if they had invested directly.