Commonwealth Consolidated Acts Commonwealth Consolidated ActsA discount capital gain remaining after the application of any capital losses and net capital losses from previous income years is reduced by the discount percentage when working out your net capital gain.
A capital gain from a CGT asset is a discount capital gain only if the entity making the gain acquired the asset at least a year before the CGT event causing the gain and no choice has been made to include indexation in the cost base of the asset.
Special rules apply to the net income of trusts with net capital gains, to ensure that the appropriate discount percentage is applied and to let beneficiaries apply their capital losses against their share of the trust's capital gains.
Special rules apply to certain capital gains made by listed investment companies to enable shareholders receiving dividends that include these gains to obtain benefits similar to those conferred by the CGT discount.
Table of sections
What is a discount capital gain?
115 - 5 What is a discount capital gain ?
115 - 10 Who can make a discount capital gain?
115 - 15 Discount capital gain must be made after 21 September 1999
115 - 20 Discount capital gain must not have indexed cost base
115 - 25 Discount capital gain must be on asset acquired at least 12 months before
115 - 30 Special rules about time of acquisition
115 - 32 Special rule about time of acquisition for certain replacement - asset roll - overs
115 - 34 Further special rule about time of acquisition for certain replacement - asset roll - overs
What are not discount capital gains?
115 - 40 Capital gain resulting from agreement made within a year of acquisition
115 - 45 Capital gain from equity in an entity with newly acquired assets
115 - 50 Discount capital gain from equity in certain entities
115 - 55 Capital gains involving money received from demutualisation of friendly society health or life insurer