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, depending on who owned 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: A proposal made in the 2018-19 Federal Budget, if legislated, would see the following change: applying to payments made from 1 July 2019, 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.
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