A 50% reduction in the taxable capital gain available to Australian individuals and trusts holding an asset for more than 12 months before sale.
Enacted in s 115-100 of the Income Tax Assessment Act 1997. Individuals and trusts get 50%; SMSFs in accumulation phase get 33.3% (effectively 10% tax on long-term gains); companies get no discount. The proposed 2027 reform removes the discount for the post-1-July-2027 portion of any capital gain on residential property.