What is the ATO capital gains tax discount in Australia?

It is a concession that reduces capital gains for eligible taxpayers on assets held for at least 12 months. Individuals can currently claim a discount on qualifying gains. The review is assessing who benefits, how long assets should be held, and whether rules for trusts should change. Any reform would affect after-tax outcomes.

How could a longer 12 month holding period affect me?

If eligibility is pushed out, more sales made before the new threshold would face higher tax. You may hold assets longer to access a discount, or realise losses to offset gains. Review cash flow, risk, and portfolio goals. Consider staggered sales to manage bracket impacts while keeping diversification on track.

What should trustees of family trusts in Australia do now?

Check the trust deed, past resolutions, and streaming clauses. Model distributions under tighter rules and update beneficiary tax profiles. Keep accurate records for cost bases and holding periods. If the Senate inquiry CGT recommendations change streaming or timing tests, having scenarios ready will help make timely, compliant year-end decisions.

What actions can investors take before changes are final?

List holdings near the 12 month holding period, estimate after-tax returns under different discount rates, and test the effect of delayed eligibility. Use tax loss harvesting where suitable. Review structure choice between personal, trust, company, and super. Stay across official updates and seek advice before large disposals or trust distributions.

Global Market Insights

March 11: ATO CGT Review Eyes Trusts, 12-month Rule—Investor Watch

ByHuzaifa Zahoor March 11, 2026March 11, 2026

The ATO capital gains tax discount is in focus after fresh evidence showed more than half of benefits flow to the top 1%. On March 11, Treasury and the ATO pointed to widespread use of family trusts Australia. The Senate inquiry CGT report due next week could propose a lower discount, a longer 12 month holding period, and tighter trust streaming. Any shift would change after-tax returns for shares and property. Here is what Australian investors should track and how to prepare.